Is Moving a Good Tax Strategy?
As part of my CPA Firm in Lake Nona, a community within Orlando, FL "the City Beautiful", I get asked about tax strategies everyday. One of the most impactful, and overlooked, tax strategies might just be where you live. It's one that is rarely considered because people often don't choose where they live for tax purposes. I'm not saying it should be the reason you move, but let's take a look at the potential impact.
Let's look at why moving to Florida (one of the states that has no income tax) can be a fantastic tax strategy. Whether you're an entrepreneur, a retiree, or just someone looking to make the most of your hard-earned money, this could be an exceptional tax strategy.
No State Income Tax: One of the biggest draws for many residents is the fact that Florida has no state income tax. That means you get to keep more of your money in your pocket. Compare this to states with high income tax rates, and you'll quickly see the financial benefit of calling Florida home. This could put anywhere from 3-13% back in your pocket depending on where you live and how much you make.
Homestead Exemption: Another major advantage is the Homestead Exemption. If you own a primary residence in Florida, you're eligible for this exemption, which can lead to significant property tax savings. It's a powerful incentive for homeowners looking to build wealth.
Estate Taxes (or lack of): For those thinking about their legacy, Florida offers excellent estate tax benefits. There's no state-level estate tax, which means your heirs won't have to worry about losing a substantial portion of their inheritance to taxes.
Business Friendly Environment: Florida boasts a business-friendly environment. With a lower cost of living compared to other states and various economic incentives, it could be an ideal place to start or relocate your business.
Quality of Life: Beyond the financial perks, let's not forget about the incredible quality of life that Florida offers. We're talking about beautiful beaches, a thriving cultural scene, and a plethora of outdoor activities. It's a place where you can live, work, and play. Of course, there's also Universal Studios, Disney, and other major attractions.
Moving to Florida isn't just about palm trees, sunshine, and year round warm weather (though there is plenty of it); it can also be a savvy financial move. With no state income tax, advantageous property tax laws, and a business-friendly environment, it's no wonder so many people are making the move.
I enjoy helping individuals with tax preparation and tax planning as well as offering financial coaching to individuals (and businesses) looking to overcome challenges and reach their financial dreams. I also service businesses (including nonprofits and churches) by providing tax preparation and tax planning as well as consulting for accounting, bookkeeping, and other finance related questions. I live in Orlando, FL, but I serve clients all across the country. Contact us if you need assistance and take a look at the resource page.
6900 Tavistock Lakes Blvd Ste 400
Orlando, FL 32827
Serving clients in Orlando, Lake Nona, Altamonte Springs, Apopka, Azalea Park, Celebration, Hunters Creek, Lake Buena Vista, Lake Hart, St Cloud, Winter Garden, Winter Park and via the latest technology remotely around the country.
*The blog posts (as well as the YouTube channel) are my personal opinions and thoughts about a wide range of topics. They are not meant to apply to individuals specifically and should never be relied on as tax or investment advice. You should contact a professional for specific advice before taking action.
**This blog post was created with the assistance of artificial intelligence, edited by me, and expresses my personal opinions on the subject matter.