New Yorkers moving to Florida is no news! What is new is the impressive flow of new yorkers relocating to Florida during the pandemic. The Sunshine State is receiving almost 1000 new residents each day.
The state of Florida continues to attract New Yorkers and other residents of northern regions. Leaving regions marked by severe winters in search of pleasant weather and sun all year round is nothing new. The flow of residents in New York intensified during the pandemic. But it is not just the good weather year-round that encourages our good friend from the north to come to the Sunshine State. Florida offers very generous tax legislation compared to New York (Florida has no state income tax). It is not surprising that several high-net-worth individuals living in New York are migrating south in search of considerable tax savings.
Read on to learn the main reasons why New Yorkers decide to move to Florida:
1 – Florida residents do not pay personal state and municipal income tax
Number one reason New Yorkers are moving to Florida every year is probably because of the better weather. But income tax also helps a lot.
Florida residents do not pay state income tax. Taxes are charged mainly on consumption (you pay when you buy or sell a product or service). New York residents are, however, required to pay up to 13% of state and city taxes. Translating into numbers, if a New Yorker earns $ 1 million a year, he can pay $ 130,000 in tax.
2 – Incentives for New Yorkers got even more interesting after the 2018 TCJA
The tax discrepancy between the northern states and Florida became even stronger after the 2018 TCJA. Before 2018, New Yorkers could still recover part of the state tax paid on the federal tax return (SALT). After 2018, with the advent of TCJA, there was a limitation on deducting a maximum of $ 10,000 annually. The amount may not greatly affect low- or middle-income taxpayers, but it certainly makes a huge difference for high-income individuals.
The tax advantages in Florida certainly influenced billionaire Carl Icahn’s decision to move to Florida and take all of his companies with him as well.
But be careful! Moving from New York to Sunshine State does not mean simply buying or renting property in the area and obtaining a local address. The state of New York is considerably rigid in its home audits. It is not so simple to escape from its tributary clutches. It is necessary to prove to the New York authorities that, in fact, his life and daily life are in Florida and not in New York. If you come and go all the time, or own a property in New York, things can be more difficult than they seem.
3 – Lifestyle in Miami – Why New Yorkers are moving to Florida
I believe this is the most important reason new yorkers move to Florida.
Another major advantage of the state of Florida over the northern states is the lifestyle. We have already talked about the pleasant weather all year round. Sunny days provide unique moments with family and friends on beautiful beaches, some of them considered the most beautiful beaches in the USA. The welcoming atmosphere, gastronomic wealth, events, nightlife, shops give Florida’s daily life a unique lifestyle. In addition, cities like Miami and Orlando are a global hub. Florida is a business hub that welcomes people from all over the world. The opportunities are there.
During the pandemic there was a surge in sales of single-family homes nearby Orlando and Miami. Most new buyers are searching for single-family homes in suburban neighborhoods or less congested areas. In Orlando, cities like Windermere and Winter Garden are some of the places that experienced a boom in Real Estate, thanks to new-yorkers and other out-of-state Americans moving to Florida. In Miami, cities like Weston and Parkland are two examples.
4 – Opportunities in the Real Estate market
Despite all these characteristics, Florida still has one of the most attractive costs per square meter in the USA. This advantage will not last long, as millionaires from most states continue to migrate here. Take advantage of opportunities in the Florida real estate market to buy your oceanfront apartment or a luxury mansion in a luxury lakefront condo. Unlike cramped and expensive apartments, characteristic of a large urban center like New York, the plans of the Miami residences are spacious, well distributed and with stunning views of the sea or the skyline.
5 – The best private schools and universities
Florida also has a huge advantage over education in relation to New York. Florida offers grade A private schools at more attractive prices than New York’s premier schools. Florida colleges are not far behind
Interested in moving to Florida? Download our free Relocating E-book with all the guidance you need
Before choosing Florida as your permanent residence you should be aware that New York State tax officials will not let you go that easy. Even if you buy a home in Florida and spend most of the year there, New York State might still consider you as a resident there for tax purposes. There are a few things you must do in order to convince the departed state you no longer have a domicile there. We explain that in the article: The concept of a domicile in the eyes of New York State tax officials
AMG International Realty is a full-service South Florida brokerage firm with years of experience helping New Yorkers and other northern residents moving to Florida. We are your one-stop-shop regarding Real Estate and related services. We have a full network of professionals in different areas such as experienced tax lawyers and accountants that we can refer in order to make your relocating easier and planned.
If you are considering moving to Florida, call me today: + 1 (305) 318 6968 (Heloisa Arazi). Don’t forget to ask for a copy of our complete E-book with all the guidance and orientation you need.