Cost Of Living In Naples, FL (Taxes, Housing & More)

With its palm tree-lined streets, white sandy beaches, and laid-back vibe, Naples, Florida is a popular beach town at the tip of Florida’s developed western shore. Naples also caters to a wealthier clientele seeking a beach haven away from the masses. So, this begs the question, what is the cost of living in Naples, FL?

Naples, Florida has a cost of living 12% higher than the national average and 8% higher than the rest of Florida. Housing costs are 40% more than the US average, with a median home price of $399,000. But costs for utilities and transportation come in below the national average.

The cost of living in Naples is higher than the national average by over 10 percent, but that is skewed by the high cost of housing in this luxury beach community. The affordability index for housing in Naples is over 140, but many other important categories that play into the overall cost of living like utilities, transportation, groceries, and healthcare are at or below the national average.

Naples isn’t a cheap place to live by any stretch of the imagination, but in terms of places where wealthier people might be interested in living, it is cheaper.

Situated on the edge of the Everglades, Naples is a popular destination for retirees and snowbirds looking to escape the cold winters of the northern states.

The city ranks in the top ten in the USA for per capita income and has a high concentration of millionaires. The homes that are built in Naples are targeted towards this country club demographic, and real estate is not cheap.

Florida beach real estate is more affordable than other coastal areas of the United States and taxes are low. There are plenty of luxury options available for vacation or winter homes and high-end restaurants and boutiques.

The median home cost in Naples for a three-bedroom, two-bath is over $336,000, with many listings north of $750,000. Naples has a cost-of-living index of 111.9, meaning it is approximately 12% more expensive to live in Naples than the rest of the country. However, as you’ll discover as you read through the rest of this breakdown of the cost of living in Naples, the overall cost of living is skewed higher due to the very high cost of real estate.

The minimum wage in Florida is $10 an hour, which is higher than the federal minimum wage of $7.25. The minimum wage in Florida is set to increase by $1 per year until it reaches $15 per hour in 2026.

Real estate at the beach is always expensive, and Naples is no different. The city is home to beautiful architecture along its palm tree-lined streets and coral sand beaches. Naples is a beautiful place to live with great weather and some of the best golf courses in the country.

Clearly, this is prime real estate, and the median home cost reflects this. The median home cost in Naples is $399,000

Homes are more expensive than the national average in Naples, but life in Florida is still affordable. For this reason, Naples is an attractive place to live for wealthy homebuyers who can afford to buy a home anywhere.

42.3% of people own their homes, and the majority of homes have a value of over $2 million. However, about 11.5% of homes have a value between $500,000 and $750,000. About 10% of homes are valued at less than $300,000.

There’s a reason besides the warm weather that so many older Americans move to Florida when they retire – low taxes. Florida does not charge a state income tax and their property taxes are less than 1%, which is below the national average.

The only substantial tax that Florida charges is its 6% sales tax, which is still less than the national average of 7.3%. Therefore, taxes will not contribute much to your cost of living in Naples. At the very least taxes shouldn’t be a reason to make it more expensive.

Utility rates in Naples are actually slightly below the national average, with a cost index of 97.9. Heating costs are almost non-existent in Florida during the winter, helping to drive down the overall utility costs in Naples.

Investing in an energy-efficient cooling system, or relying on solar in the Sunshine State can help keep cooling costs down during the hot summers.

Besides the heat and air conditioning, what other utility costs should be considered in the city?

Naples is a beach town, but because there are many full-time residents, there is much more to do than the typical beach activities and surf shops. Naples is known for high-end shopping and beautiful golf courses. Chartered fishing trips are also popular. Naples has a wealthy population, and with that comes plenty of culture in the form of theater companies, symphonies and art galleries, and museums.

Naples isn’t just for the wealthy, however, and there are ample affordable entertainment and dining options for tourists of all types. Here is a breakdown of the typical costs of various entertainment options in Naples.

The transportation costs in Naples are below the national average, with a rating of 80.6 out of 100. The Collier County bus system features a fixed-fare which is $2, one-way, for most adults.

There’s a reduced fare for students, seniors, and active-duty military that is $1. Day passes are $3 and the reduced rates are $1.50.

If you use the bus often, it’s worth purchasing a 15-day pass for $20 for most adults or a 30-day pass for $40. Seniors, active military, and students can score a 15-day pass for $10 or $20 for a 30-day pass.

However, most residents get around in their own vehicles, with the average household having two cars. Florida’s gas tax is 26.5 cents per gallon on top of the federal gas tax of 18.4, plus Collier County has a gas tax of 12 cents per gallon.

Most people in Naples travel by automobile, and the average Naples household has two cars. Gas prices are typically a little more affordable in Florida than in some other states because of its proximity to Gulf Coast refineries.

The state, however, has a gas tax of 26.5 cents per gallon in addition to the federal gas tax of 18.4 cents per gallon, and Collier County has a 12 cents per gallon tax. With an average of $3.30 a gallon, you could pay about $2,164 on gasoline for your vehicle.

Plus, you’ll pay an average of $2,100 a year for car insurance, and about $387 to $450 annually in repairs and maintenance.

Naples has historically had an older population, so its school system is smaller and rolled in with the surrounding county. Fewer than 11% of households in Naples surveyed in the most recent census had children, but that doesn’t mean the education is substandard.

The Collier County public school system has a high rating. There are also several prominent private schools in Naples, making this a good area for families who choose to raise children at the beach. The average tuition for private schools is $10,090, which is about $530higher than the Florida average.

Naples is not home to any colleges or universities, though there are several satellite/distance learning outposts nearby. Florida Gulf Coast University is located 30 minutes north of Naples in Fort Myers.

Naples caters to a very specific target demographic – wealthier retirees and businessmen trying to flee the higher-tax locales of America’s large coastal cities who love to golf. Though to be fair, that statement applies to a majority of the Florida coast. Really, who can blame them? Naples is a beautiful city with gorgeous architecture and beaches.

This is also not a sleepy beach town with very few attractions and activities. Naples has a lot to do and great options for your dining and entertainment dollar. If you are looking for a luxurious beach resort town with low taxes, then Naples is definitely a great option to consider.

Related Questions

How much do you need to live comfortably in Naples, FL?

On average, to live comfortably in Naples as a single adult with no children you will need to make at least $30,867 a year. As the family grows, the living wage obviously increases.A family of four with one working adult needs $68,933, while a family of four with two working adults needs a total income of $90,064. The private sector jobs available in Naples typically support this cost of living.The median household income is $80,571 and the unemployment rate is 4%, below the national average of 6%.

Is Naples a good place to live?

Naples is a safe, relaxing place to live with low crime rates, making it the perfect destination for wealthier retirees. Naples relies on out-of-town dollars, but caters to the high-society crowd, so there are dozens of great restaurants serving the freshest seafood. There is also a well-supported arts scene with performances and concerts throughout the year. The weather is great and the water is warm most of the year. There isn’t much to complain about when it comes to life in Naples.

What are the main industries in Naples?

The economy in Naples is driven by tourism and the service industry. This is how the region makes most of its money. Agriculture and commercial fishing also contribute to the region’s overall wealth, but to a lesser degree. Naples works hard to maintain its tourist attractions.