It comes as no surprise to me that so many New Yorkers find themselves moving to Florida. Replanting their roots in a state where their wallets can grow and their tans can bloom. According to the US Census Bureau in 2018, 63,722 New York residents moved to Florida while only 24,084 Floridians moved to New York. People relocate for a slew of reasons. Let’s focus on the financial benefits of moving to Florida and compare Apples to Oranges.
An apple a day might keep the doctor away but nothing will keep the New York tax collector away! New York charges a State Income Tax, an Estate Tax, a Property Tax, a Corporate Tax and a Sales Tax, just to name a few. Florida also charges a Property Tax, a Corporate Tax and a Sales Tax, however the state does not charge an additional income or estate tax. Florida is one of only seven states that has no personal income tax. Florida’s state tax on intangible assets, such as stocks, bonds, and mutual funds, was repealed in 2007, so this type of income is no longer taxed, either. Local municipalities play a big role in setting both the Property tax and Sales tax. Overall New York’s Tax burden is 12.28% vs Florida’s 6.82%.
The New York State income tax rate is a flat amount for all of the money you earned up to your highest tax bracket, plus a marginal percentage of any amount you earned over that. There are eight marginal tax brackets ranging from 4% to 8.82%. For example, if your adjusted gross earnings are between $0 and $8,500, you’ll pay 4%. If you find yourself in the second bracket, earning between $8,500 and $11,700, you’ll pay 4.5% plus $340. For earnings between $80,650.00 and $215,400.00, you will pay 6.49% plus $4721.43. Now, for those of whom would like to pay more than their earning bracket dictates, have no fear, as of 2019 the State of New York added Form IT-227 New York State Voluntary Contributions. Yes, you may volunteer to pay more money to the state but don’t think for a second, you can volunteer your services during a crisis and not be made to pay for your kindness in the form of a tax. Florida nurses who volunteered to help during the pandemic will have to file with the state of New York as a non-resident and pay income tax on the money they earned.
The New York estate tax is not as all reaching as the income tax. The threshold was $5.25 million for those whom passed away before January 2019, making it non relevant to a majority of New Yorkers on a personal level. However, there is the principal of being taxed twice on what you have earned over time. Thanks to the growing economy over the past couple years there was an increase in households in the United States with a net worth of more than $1 million dollars. Those millionaires who resided and passed in New York paid a graduated rate on the value of the estate that exceeds the threshold. The rates starts at 3.06% and go up to 16%.
There is no denying the influx of New Yorkers has been steadily increasing over the years thanks to our lower tax obligations. I think it is more noticeable this year due to the world-wide pandemic. According to the Tax Foundation census data published in September, Florida’s revenue collected only dropped 3.8% vs New York’s 8.1% drop. New York State has been hit very hard due to the local government’s shut down decisions. New Yorkers realize the repercussions from their elected official’s decisions will be incredibly hard to recover from. I fear this lack of leadership has led to the fleeing of residents who are able to relocate. Residents who want to work, who want their families lives to go back to normalcy. Fortunately for Floridians our pandemic experience has been tough but has not been stripped of the opportunity to recover. Please research your legislature’s decisions on how our state should have responded and their ideas for future responses to this unprecedented virus. We get what we vote for.
Welcome to Florida, enjoy the social distant beach strolls. Please leave the mask wearing riots in New York