Florida has always been a popular destination for individuals looking to escape high-tax states. However, with the new tax overhaul set to take effect, the Florida tax haven is looking even more enticing now.
The new tax overhaul is in place and though tax season is gearing up, plenty of residents of high-tax states are already thinking of April 15th of 2019.
Florida has always been a popular state for individuals looking to save money on state and local taxes. Like Texas, Alaska, and a few other states; Florida has no income tax. The new tax plan caps state and local tax deductions at $10,000. For high-tax states such as New York and California; this is a major change.
For states like Florida, it sounds like money in the bank.
“We have seen an extreme interest in people who are looking to move to South Florida for state income tax reasons,” said Holly Meyer Lucas. Lucas is the president of Meyer Lucas Real Estate at Compass.
According to Lucas, once the new tax bill passed, the reaction was immediate. And while the popular stereotype is that New Yorkers are the ones who move south, that isn’t necessarily the case.
“But what’s really interesting is we are actually getting more buyers right now from California than the Northeast.”
California has some of the highest state taxes in the country. Coupled with a ballooning real estate market, rising property taxes, and more taxes on the way; it’s no surprise that residents are looking to bail.
Florida, for its part, is a better approximation of California’s climate than Alaska.
Looking to Fly South?
If Florida sounds like a good destination for tax or other reasons; download the City vs City app! Our cost of living calculator will show you the true cost of living in your city. Then, we compare your cost with another city of your choosing.
The result? You’ll see which city can offer you a better cost of living. Download the City vs City app today!