Florida is growing as a haven for the super-wealthy due to laws that provide leniency on income taxes.
State and local tax deductions cap at $10,000 because of the Tax Cuts and Jobs Act, and Florida does not tax income or have an inheritance tax. New York’s state income tax deducts up to 8%. The inheritance tax can take up to 16%.
President Trump stated he plans to move his domicile from New York to Florida, and if he spends more than 184 days in New York, he would need to pay taxes there. So far, he has spent most of his time at his Florida estate, Mar-a-Lago. Other big-name billionaires such as Leon Cooperman and Carl Icahn also headed to Florida recently.
Residents from high-tax states such as New York and California choose to relocate to places such as Florida, Texas, Arizona, and North Carolina because of the huge savings in taxes they experience as a result.
Florida’s net adjusted gross income in 2018 measured $16 billion.
As reported by FOX Business, a couple or individual earning $650,000 in regular income would save $69,719 by relocating from New York to Florida.
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