If you’ve ever wondered, “Is Panama City, Florida, a good place to retire?” the answer is a resounding yes. Known for its pristine white-sand beaches, affordable cost of living, and reliable access to quality health care, Panama City is an attractive destination for retirees seeking both relaxation and convenience. This Gulf Coast city offers a balance of natural beauty and modern amenities, making it a strong contender for anyone planning their next chapter.
At 55places.com, we specialize in helping active adults find not just a house, but the lifestyle they’ve been dreaming of. Whether your idea of retirement includes days on the golf course, afternoons playing pickleball, adventures at sea, or quiet evenings in a peaceful home, we connect you with trusted real estate agents and communities that match your vision.
Let’s explore Panama City, Florida, and learn why it could be your perfect retirement destination!
Panama City’s White-Sand Beaches and Coastal Charm
Panama City residents and their guests can enjoy 27 miles of pristine, white-sand beaches and crystal-clear waters. Dive into the chilly waves on the hottest of summer days, or admire stunning sunsets during the colder months. If you enjoy fishing, swimming, kayaking, or relaxing in the sunshine, Panama City has outstanding beaches.
While weekends and holiday weekends are usually very busy at the beach, Panama City beaches are far less “touristy” than other Florida beaches. There is a strong sense of community here, which is why retirees love it.
Best Beaches to Visit in Panama City
When checking out real estate options in Panama City, be sure to visit:
- St. Andrews State Park — for super snorkeling and sleeping under the stars
- Camp Helen State Park — for hiking, birdwatching and photography
- Shell Island — a beautiful park only accessible by boat or the Shell Island Shuttle
But beaches aren’t the only attraction around Panama City. You can also find science museums, art galleries, movie theaters, and more. The best news is that retirees will have plenty of extra funds on hand to enjoy these entertainment options. Panama City (and Florida in general) offers affordable housing and a tax-friendly environment.
Is Panama City an Affordable Place To Retire?
Yes! When compared to other coastal towns in the nation and in Florida, Panama City is one of the most affordable.
Home Prices in Panama City
According to U.S. News and World Report, Panama City is home to about 32,650 people, with a median age of 37.4. Residents here earn a median household income of around $58,780. If you’re looking to buy a home, the median home value is in the mid $200s. Prefer renting? Median rent comes in at around $1,000.
In the Panama City area, homes in 55+ communities typically spend about 233 days on the market. The average price comes in around the mid $600ks, according to data from 55places.com, but that number really depends on the community, size, and amenities. For instance, homes in Watersound Origins average in the low $1Ms, while those in Latitude Margaritaville Watersound are closer to the low $500ks.
The Tax Benefits of Retiring in Florida
Overall, Florida is a very tax-friendly state for retirees, and that is a massive draw for many adults. There is no state income tax on Social Security retirement payments, IRA distributions, or 401(k) payments.
Retirees moving to Panama City from highly taxed states like New York or California will be thrilled with the extra 10% of income left in their wallets every month.
Sales Tax in Panama City
Sales tax is reasonable in Panama City. Florida charges a 6% sales tax on most consumer goods (excluding uncooked food and prescription drugs), and Bay County taxes most purchases an additional 1%. The total sales tax on most things is 7%. Again, if you are coming from a highly taxed state/county/metro area, and are used to paying 8-10%, you will appreciate the difference.
And, should you be shopping for a brand new mobile home, the sales tax on them is only 3%, plus any local tax.
Property Taxes in Panama City
According to Ownwell.com, Panama City’s property tax rate is 1.09%. This is just a touch higher than the national average of 1.02%, but still lower than the Florida average property tax of 1.14%.
Most retirees find property taxes to be very reasonable, especially if they are coming from states like California, New Jersey, New Hampshire, or Connecticut. In short, Panama City is a good place to retire when it comes to all sorts of taxes.
Health Care Access in Panama City, Florida
Another important point to consider for those wondering, “Is Panama City, Florida, a good place to retire?” is access to quality health care. We have good news: Panama City has plenty of excellent health care facilities. For its size, Panama City offers a wide range of hospitals, primary care physicians, clinics, specialty providers, and more.
Choosing health care providers is a very personal decision. If you’re new to the area, be sure to read reviews and ask your neighbors for their opinions on the following facilities:
Depending on your health insurance situation, you may need to make arrangements with a new primary care provider when you move to Panama City. There are many options, so you shouldn’t have any trouble finding one that takes your insurance.
Drawbacks of Retiring in Panama City, Florida
Panama City, FL, sounds like an outstanding place to retire. In the spirit of full disclosure and utter honesty, we also conducted research on reasons people might not want to live here. If you are still asking, “Is Panama City, Florida, a good place to retire?” keep reading.
Some young locals leave the area because they cannot find the high-paying jobs and career growth they need to support a growing family. If you’re a retiree or semi-retired, this shouldn’t be a setback.
Be aware of the heat and humidity, as well as the potential for tropical storms and hurricanes. We all know that Florida, as a whole, can get extremely hot and humid in the summer. However, with air conditioning and quick access to cooling beach breezes, the heat and humidity is manageable.
Hurricanes and tropical storms can affect any beach town, and storms do come in from the Gulf Coast. With modern technology and communications systems, Panama City residents typically have ample time to prepare for severe weather.
Start Your Retirement Journey in Panama City With 55places
Ready to find your perfect home in Panama City? The team at 55places.com can connect you with a trusted local real estate agent who knows the area inside and out. Whether you’re interested in buying your first home here or finding the ideal 55+ community, we’ll make the process stress-free and straightforward. Reach out today and let us help you take the next step toward your new life in Panama City!
Panama City, Florida FAQ
1. What is the cost of living in Panama City, Florida?
The cost of living in Panama City is slightly below the national average, with affordable housing, reasonable property taxes, and lower overall expenses compared to many coastal cities.
2. How much do homes cost in Panama City?
The median home value is in the mid $200s, while homes in 55+ communities often range from the $500s to over $1M, depending on size and amenities.
3. Is Panama City affordable compared to other Florida beach towns?
Yes. Panama City is generally more affordable than places like Naples, Sarasota, or Miami, while still offering beachside living.
4. What is the property tax rate in Panama City?
The property tax rate is around 1.09%, close to the national average and slightly below the Florida state average.
5. What is the sales tax in Panama City, Florida?
Panama City has a 7% sales tax (6% state tax plus 1% county surtax). Groceries and prescription medications are exempt.
6. Are there 55+ communities in Panama City?
Yes. Panama City and nearby areas offer several active adult and retirement communities, with homes in various price ranges and amenities.
7. What are the best beaches in Panama City?
Popular options include St. Andrews State Park, Camp Helen State Park, and Shell Island, each offering unique recreational opportunities.
8. What is the weather like in Panama City?
Panama City has a warm, humid climate with hot summers and mild winters. Residents should also prepare for the possibility of hurricanes and tropical storms.
9. Is Panama City crowded with tourists year-round?
Tourism peaks in summer and on holidays, but Panama City is generally less tourist-heavy than nearby Panama City Beach.
10. Is Panama City a good place for snowbirds or part-time residents?
Yes. Many seasonal residents enjoy Panama City for its affordability, coastal lifestyle, and lack of state income tax.
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