High-income individuals from the borough of Manhattan in New York City can save nearly $200,000 annually by moving to Miami, Florida, a recent study has found.
A June 8 study by financial information provider SmartAsset looked at the cost of living and tax rates in New York City, Chicago, and San Francisco to determine how much money can be saved by moving to Miami. It looked at individuals earning between $150,000 and $650,000 annually. “Between cost-of-living differences and taxes, someone making $650,000 in Manhattan can save $195,000 in Miami,” the study said.
“The cost-of-living difference between Manhattan and Miami is most drastic. Costs are 137.6 percent higher than the U.S. average in Manhattan, while they’re 22.8 percent higher than the average in Miami.”
Florida’s lack of state income taxes also plays in favor of Miami, the study noted. While high-earning individuals are taxed between 36–45 percent in Manhattan, the same group is only taxed 27–35 percent in Miami.
Moving from San Francisco to Miami was estimated to save high earners roughly 24 percent of their salaries, with those making $650,000 per year potentially saving more than $150,000 in the Florida city.
Miami for High-Income Earners
A June report from SmartAsset also listed Miami as a good place to migrate for high-income earners. “There are 21 cities where those earning $250,000 per year in one city have a lower tax rate than those who earn $100,000 in 35 other cities,” the report said.“Most of the lowest effective tax rates on $250,000 are in places with no state income tax, including Seattle and Spokane, Washington; Plano, Austin, and Dallas, Texas; Miami and Orlando, Florida; Reno and Las Vegas, Nevada; and Nashville, Tennessee.”
A Jan. 30 report from the National Association of Realtors (NAR) found Florida to be a top destination for Americans moving out of their states last year.
In 26 states, more people moved in than out, with the rest of the states seeing more people leave them. Florida ranked as the number-one state where people moved in, attracting 318,855 new residents. This was followed by Texas, North Carolina, South Carolina, and Tennessee.
Pros and Cons of Moving to Florida
Florida offers numerous benefits for its citizens. In addition to not charging a personal income tax, the state exempts certain items from sales tax like prescription drugs prescribed by a doctor, groceries, medical supplies like wheelchairs, clothing and footwear under $60, and more.Certain counties in the state offer property tax relief, provided individuals inhabit their home as their primary residence for at least six months every year. This exemption can result in thousands of dollars in savings annually.
Property taxes in Florida are some of the least expensive in the United States. Many districts also offer tax breaks for retired people and ex-military personnel.
Florida also has a strong economy. For the past many years, Florida has consistently ranked at the top spot in the economic freedom category of CATO’s Freedom in the 50 States, an index of personal and economic freedom.
In 2022, the state of Florida saw more jobs than New York for the first time in four decades. In Florida, there were 9,578,500 nonfarm jobs by the end of 2022, which was higher than the 9,576,100 jobs in New York, according to data from the Bureau of Labor Statistics (BLS).
While there are advantages to moving to Florida, there are some cons as well, such as the crime rate.
According to data from Wisevoter, Florida only ranked in the 26th spot out of 50 states, the District of Columbia, and Puerto Rico when it came to violent crime rate. This means that there were 26 other places where the violent crime rate was lower than that of Florida.
The health care system is also nothing to boast about. An August 2022 study by WalletHub ranked Florida 40 out of 50 states and the District of Columbia in the list of states with the best health care systems.
