Benefits of Moving to Florida
Florida’s sun-soaked beaches, dazzling culture and fresh seafood attract newcomers every day. No state income tax, low cost of living and remote work opportunities make the Sunshine State an ideal place to relocate.
Summer is the most popular time of year to moving FL, but it’s hurricane season from June 1 through November 30. Make sure to plan for a move during a non-hurricane period!
1. No State Income Tax
White sand beaches and tax incentives are drawing people to Florida from all over the country. This is not just a retiree phenomenon, either, as remote workers in many higher-tax states are also considering making the move to Florida.
As this chart from the Tax Foundation shows, the benefits of moving to a state with no income tax can add up quickly. But it’s important to consider other factors, too, before making a decision.
For example, those who choose to rent a PODS moving container and hire full-service movers can save money on their move because they don’t need to pay for rental trucks. However, this option requires planning ahead and budgeting carefully. The same goes for a DIY move. Before you decide to do it, consider your tax situation and how much it will save you to make the move worth it.
2. No State Sales Tax
Florida’s warm weather and tax incentives have people relocating from colder states to escape the winter chill. And it’s not just retirees—remote workers are also relocating to the Sunshine State.
However, before you move to Florida from New York, Connecticut, Massachusetts, or another Northeastern state, be sure to do your research. Each area has a different cost of living, and you’ll need to figure out how much your move to Florida will be, including moving costs and housing prices.
A good rule of thumb is to get multiple written estimates before you move. Interstate moves are priced by weight and distance, while local moves are often based on hourly charges. Also, make sure you ask whether your movers’ estimates are binding or non-binding. This will help you avoid hidden fees and surprises during your move.
3. No State Property Tax
Although there’s no state property tax in Florida, the state does have a documentary stamp tax which is levied on documents that transfer an interest in real property. This includes deeds, bonds, notes and written obligations to pay money, mortgages and liens.
In addition, Florida’s average cost of living is below the national average, which makes it a great place to retire or to move for work. The Sunshine State is also a popular destination for remote workers looking to escape high-cost cities and enjoy balmy winters.
While it’s impossible to avoid paying property taxes, the state of Florida’s is significantly lower than in many other states.
4. No State Income Tax
Florida’s sunny weather, delectable food and exciting attractions draw many new residents each year. But one of the biggest benefits of moving to Florida is that you won’t have to pay state income tax!
That may seem like a big enough incentive to move from places with high income taxes, such as California or New York, but there’s also the added benefit of no state estate or inheritance taxes. That could add up to significant savings for people in the highest federal income tax brackets.
However, keep in mind that states without income taxes still need money to fund services, so they raise revenue through other means such as sales, property and inheritance taxes. These taxes can be quite high, so it’s important to do your research before making a decision.
5. No State Income Tax on Business Income
The Sunshine State’s famous beaches and warm weather aren’t the only things that attract people to move from other states. Florida also offers a lighter tax burden that can be a significant incentive for those looking to relocate and save.
Florida does not collect an income tax, and the state constitution prohibits counties and municipalities from doing so as well. This helps to keep the state’s tax burden relatively low, especially for retirees who rely on income from Social Security and pensions.
It’s important to note that in order to qualify for Florida’s lower tax rates, you must establish the state as your domicile by meeting specific criteria. Otherwise, you may be required to pay sales, property or excise taxes that would make it more expensive to live in the state.Read more