Are you looking for ways to cut your tax bill drastically and increase the size of your home? Depending on your state and income bracket, relocating to Florida could be a smart money move. Ever since the passage of the 2017 Tax Cut and Jobs Act, Florida has seen a larger than normal increase in “Tax Migration” from high-tax states such as New York, New Jersey, Connecticut, California, and Illinois. According to Census data, Florida is the 3rd fastest growing state by population and recently took that spot from New York. South Florida continues to be an in-demand destination for celebrities, retirees, and families chasing its tropical climate, diverse wildlife, plentiful beaches, and NO STATE INCOME TAX!
According to the Greater Fort Lauderdale Chamber of Commerce this is the process for Establishing Legal Residency*:
“To become a resident of Florida, a person must establish a home or a permanent dwelling place and demonstrate the intent to make Florida the place of permanent legal residence. There is no fixed waiting period required before a person can become a resident. Simply produce proof of intent to establish residence by filing a sworn statement with the Clerk of the Court in the county where your new residence is located. There is a fee, and a driver’s license or other picture identification is required for recording the affidavit.”
Clerk of the Court Office
201 S.E. 6th Street, Room 130
Fort Lauderdale, 33301
Hedge fund managers and company executives are flocking to South Florida and setting up shop too. The independent research organization Tax Foundation suggests that moving to Florida may do many some good because it has one of the lowest tax burdens in the country for both residents and businesses. A report from research firm Wealth-X states that in 2018 alone, the New Jersey-New York population lost more than 5,700 of its high-net-worth individuals with liquid assets of $1 million to $30 million.
Many of these affluent individuals are taking their money and pouring it into South Florida’s luxury properties and ultra-luxurious condos for good reason. Moving to Florida from a state like California or New York could save a high-net worth individual (HNWI) tens of thousands of dollars in taxes. One family that relocated from the Northeast saved over $150,000 in taxes. The “no state income tax” and “no Florida estate tax” perks are definitely significant incentives along with the fact that price per square foot will go much further in Florida than in other high tax states. Transplants are finding that the vibrant cultural and epicurean offerings mean no need to compromise on lifestyle. The beaches and warm weather are not bad either.
If you are thinking about relocating, please contact me if you need help. I am a California transplant and must confess I was not a happy camper for my first couple of years. After getting settled, I have grown to absolutely love the Sunshine State and would welcome the chance to help anyone find their way (and fall in love a lot sooner).
Send me an email and I will share a few resources than make proving residency much easier. Here is an article with suggested steps to establish a domicile in Florida.* https://cutt.ly/NwD0Jrd
*The information provided on this website is not to be regarded as the offering of tax or legal advice. All content is for educational purposes only.
Copyright © 2019 Sandra Canning. All rights reserved.