If you earn $650,000 per annum, you can save more than $69,700 in taxes per year by moving from New York to Florida. Recent changes to the US tax code have encouraged an increasing number of people to move – taking their cash to lower-tax states like Florida.
According to a study from LendingTree, which analyzed IRS data from 2016, Florida is the number one largest beneficiary from relocations out of all 50 states – by a landslide.
Florida drew in a net influx of about $17.7 billion in adjusted gross income (AGI) dwarfing the remaining 19 states that saw a positive net influx of income – which combined for a total of $19.4 billion. Florida also draws a large proportion of higher net-worth individuals – more than 85 percent of its net inflow of income came from people earning at least six-figures.
New York lost the largest amount of adjusted gross income from migration, about $8.8 billion. Another high-tax state, Connecticut, had the largest income loss relative to its overall economy – at $2.6 billion. Connecticut, Pennsylvania, New Jersey, Illinois and New York lost about half of their income from people earning more than $200,000 – indicating the wealthy were picking up and leaving.
Data from the US Census Bureau showed that while Florida received more movers than any other state last year, New York’s outflows to the “Sunshine State” were the highest – 63,772 people. New York had the third-largest outflows of any state, with 452,580 people moving out within the past twelve months.