When you take a look at the raw numbers, they’re quite startling. People (particularly wealthy people) who move to Florida from high-tax states can knock thousands of dollars off of their annual tax bills. States such as New York, New Jersey, Connecticut and California are seeing an exodus of high-income earners – especially in light of recent tax reform at the federal level which capped the state & local tax deduction (SALT), which effectively subsidized these states’ high taxes. A recent article in the Wall Street Journal (reposted on Realtor.com) highlights this growing phenomenon and how it is affecting shifts in population from high- to low-tax states.
“Escaping state income taxes is a big part of the reason, but the federal Tax Cuts and Jobs Act of 2017 also plays a role. The law limits deductions on state and local taxes as well as the mortgage-interest deduction on federal tax returns. Factor in Florida’s lower cost of living relative to high-tax states, and the decision to move gets even easier.”
“I have to admit that I was surprised by how much of a financial savings” is achieved by moving to Florida. “It is crazy money,” says Connor Lynch, chief executive of Plastridge Insurance Agency based in Delray Beach, Fla.
Click here to read the full story at Realtor.com.
Click here to read the full story at the Wall Street Journal.
