One of the true benefits of living in Florida, apart from the lifestyle, are the enormous tax advantages. In addition to a very competitive property tax rate less than 1.2% in Collier County, people from Port Royal to Mediterra can enjoy the zero state income taxes. As a Port Royal resident, you can shoulder significantly higher taxes in your 1st home, so Florida can become more attractive. I know many Port Royal and Aqualane Shores residents who decided to become Florida citizens for the tax advantages alone. All before the sun is even a consideration!
NEW YORK – Jan. 28, 2011 – Homeowners may start factoring in taxes more as they pick where to live, particularly as some states’ dramatic tax increases make them less affordable.
Some of the states with the largest population gains from the 2010 U.S. Census are also known as low-tax states, such as Florida, Texas and Nevada, Reuters News reports.
“There can be pretty big dollars involved,” says Lisa Osofsky, a CPA and financial adviser who assists clients in New Jersey, New York and Connecticut. For example, a person earning several million dollars could save $50,000 or $100,000 by living in a lower-tax state, she says.
A family of four with a $150,000 income could save $13,368 in state and local income taxes if they moved from New York to Florida, according to figures by Bob Meighan of TurboTax. They’d likely save even more when property taxes and estate taxes are figured in too.
Retirees, in particular, may be lured to low-tax states. After all, retirees who have money in a tax-deferred retirement account during their work years would profit if withdrawing the money in a low-tax state.
Also, a couple with $85,000 in retirement income and Social Security benefits could make an extra $112 a month in income tax savings by moving from California to Michigan, as well as cashing in on an overall lower cost of living.
Best Regards,
Brad Johnson
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