More Northerners Move to Florida for Tax Incentives
Florida has always been among the top places for people to migrate to due to its spectacular weather, beautiful beaches and lack of personal income tax. More recently there has been anecdotal evidence of an influx of high earners from the Northeast that are looking to sell their homes in high-tax states and relocate to states like Florida.
Around when there was a federal tax change in 2017 there was an increase in activity for those making this move. With being limited on deducting city and property taxes especially in areas like New York, Connecticut and New Jersey there was a fire lit for some to pull the trigger on a move. Furthermore, in New York State there is going to soon be a boost in a “Mansion Tax” in NYC to help fund the city’s subway system that will only add to tax amounts.
Some of these new residents are not only relocating their primary homes, but also their businesses too. While these northern states lose some of their tax revenue, these homeowners are able to either relocate their business or conduct a large portion of it due to advances in technology being able to do work remotely. Some states like New York are catching on to this trend and trying to hone in on those who have relocated but may still spend a considerable amount of time in the northern state. Audits are being done to see where these individuals are visiting their doctors, posting on social media and where cell phones are being frequently used to measure where the majority of their activity is taking place.
In addition to the Northeast, Californians are also among those who are moving to the Sunshine State. For years Nevada has been a catch-all for these transplants, but now Florida is among their considerations that seek a similar climate but a more favorable tax situation. Particularly those with a higher income are looking to preserve their wealth as they get older.