Moving from New York to Florida? Important Tax Facts You Need to Know

Moving away from the hustle and bustle of New York City is a big decision, especially if you are planning to relocate to a different state. Moving to Florida, for instance, can be an excellent option due to the warm climate, stunning beaches, and lesser tax burden. Did you know that Florida has no state income tax, and residents can save thousands of dollars annually? If you are curious about ways that you can minimize your tax burden when moving from New York to Florida, keep reading this post.

Sell Your New York Property

If you are selling your home or residential property in New York, you may be worried about high capital gains taxes. These taxes on profit made from the sale of an asset can be a weighty burden. However, suppose you purchase a new home in Florida within two years of the sale of your New York property. In that case, under IRS rules, you can exclude up to $500,000 in capital gains tax-free if you are a qualified couple filing jointly. This exclusion can be an excellent way to save money and pre-plan your taxes while preparing to move to Florida.

Relocate Before The Year End

The year-end is the perfect time to move to Florida to save tax for the coming year. It would help if you established Florida residency before New Year to minimize taxes in your chosen state. This way, you can adjust your finances and get all the tax savings benefits by Florida’s tax laws. Your relocation expenses like transportation, lodging, or storage costs may also be deductible if they meet specific requirements.

Invest in Florida's Homestead Property Tax Exemption:

In Florida, homeowners can claim a homestead property tax exemption of up to $50,000. This exemption applies only to primary residences in the state. This tax credit can help reduce your annual property tax burden by a considerable amount. Remember, you have to file for a homestead exemption by March 1st of the new year to be eligible.

Take Advantage of Florida's Sales Tax Savings

?Florida's sales tax rate is relatively lower than other states, making it an excellent option to meet your daily needs. When you shop for goods, you get the benefit of lower sales taxes, making items like clothes, groceries, or electronics affordable.

Year-Round Tax Savings

Florida’s tax-saving benefits are not just for shorter-term tax minimization. By relocating to Florida, you can enjoy year-round tax benefits. With zero state income tax and homestead exemptions, you can save money every year on your income and property taxes. This has the potential to provide significant long-term savings.

Conclusion

Moving from New York to Florida can be a great idea, especially if you are looking to save on taxes. With these tax-saving tips in mind, you can plan your move and enjoy a lower financial burden in the future. By selling your New York Property, relocating before year-end, investing in Florida's homestead property tax exemption, and taking advantage of Florida's sales tax savings, you can reduce your tax burden while enjoying the state's beautiful weather, beaches, and amenities. Get started on your move today - it might just pay off in the long-term!