With the influx of new and younger residents migrating to the state, and the inflow of hedge funds and private equity firms in recent years, South Florida is on its way to becoming a financial hub — as it also strengthens its position as the gateway to Latin America.
While Florida was traditionally seen as a place to move after retirement, many individuals and businesses are moving during their high earnings years to take advantage of the significant state income tax advantages. The first influx of non-retirement-age individuals and business owners was spurred on by the significant limitation on deductions, for federal income tax purposes, of state and local income taxes (and property taxes), as introduced in the Tax Cuts and Jobs Act of 2017.
More recently, many individuals developed a new perspective on the flexibility of the future work environment. Specifically, the recent COVID-19 pandemic has caused people to leave high-risk urban areas where social distancing may be challenging and social unrest is a concern. With a new “work from home” mentality, many have decided to relocate to Florida.
Comparison of key tax rates
Specifically, the information below will focus on key personal, estate and property tax rates in certain states compared with Florida.