Relocating to Miami – The 2019 Tax Implications

The 2019 Tax Implications of Moving from NYC to Miami

⇒ Big earners in high-tax states are fleeing to low-tax states
 ⇒  One of the biggest winners from this shift is Miami
⇒  Apart from the tax advantages;  climate and great real estate deals are important pulls 

As an experienced luxury agent and relocation specialist I have relocated several high-net worth individuals to Miami and I’ve seen for myself how they have saved tens or hundreds of thousands of dollars purely from a tax standpoint. Add to that the value difference between properties in Miami and NYC and it becomes an almost overwhelming reason to make this move.

The David Siddons Group has written several articles on the financial upsides of moving to Miami from high-tax states and we have experienced this trend first hand as we have guided numerous of these so called ‘tax-law refugees’.

After four more phone calls from potential buyers this week, we would like to extend our appreciation to the Wall Street Journal, The Real Deal, Bloomberg and many other publications for sharing these stories, and highlighting the advantages of moving from high-tax states to low tax states, specifically to Miami. 

Check out some of our most read articles below:

Nautilus / La Gorce Areas Miami Beach DSG
Relocating to Miami - The 2019 Tax Implications
Relocating to Miami - The 2019 Tax Implications

Miami is the biggest winner 

Florida always had bargain taxes (The Sunshine state has no state income tax or estate tax), but now they’re even cheaper. The 2017 tax law that caps a deduction for state and local taxes at $10,000 is the extra push many New Yorkers needed to make their move down south. 

A top earner in NYC, who already faced a combined tax rate of 45%, would see a further increase by 12% to as much as 50% because of the tax-deduction changes. The infamous bill also limits the amount of mortgage interest that can be deducted to loans up to $750,000, which hurts states with higher property prices such as NYC

Florida is not only a desired destination for New Yorkers, but also for tax-law refugees from other high-tax states such as New Jersey, Maryland, California and Illinois. Our state has seen a steep increase of buyers from high-tax states, who besides the financial benefits are also drawn by Miami’s mild climate (The Polar Vortex might have changed some minds as well), its great real estate deals (A fraction of New York City’s prices and some great condo deals are possible due to the current over-supply in selected markets) and Miami’s increasing position as an Important city for the ultra-wealthy

Relocating to Miami - The 2019 Tax Implications

The newest US tax laws are drawing more and more wealthy buyers towards Miami 

Moving From NYC to Miami in Numbers – The 2019 Tax Implications

Miami-based financial advisor David Gruen who has helped many New Yorkers with their tax management when relocating to Miami calculated that a New Yorker earning $2M per year will save as much as $288K per year by moving to Miami. If you put those monthly savings of $24K in a mortgage in Miami you would be looking at a $3,5Million property (this excl taxes and insurance). 

The tax law limits deductions for state and local taxes, including property tax, to $10,000. Under the new rules, a New Yorker with $10 million in ordinary income and a $10 million home would have saved $1,173,278 in total taxes by relocating to Florida on Jan. 1, 2018, when the law took effect. That’s an increase of $431,682, or 58 percent, from 2017, according to the Tax Institute at H&R Block.

Relocating to Miami - The 2019 Tax Implications

The new tax laws increases the gap between high and low tax states even more

Do you want more first hand information on the Financial Benefits of Moving to Miami?

Contact David Siddons today at +1.305.508.0899

⇒ The David Siddons Group just relocated a multi-national and its Management Team from Baltimore to Miami.
⇒ We have guided several high-net worth individuals in their move from a high tax state to Miami
⇒ We have the experience, we know the numbers and we know the real estate market

WHY WORK WITH DAVID? THINGS YOU SHOULD KNOW...

For all our analytics we are agents driving some very unique and advanced tech. We Provide a granular and custom experience that empower our clients with the insight and tools to understand the most complex behaviors of any local markets.

  • Analytical

    Over 100 reports produced to date

  • Knowledgeable

    Over 1800 published articles and counting

  • Experienced

    Over $2 billion in real estate sales

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Akbota YerseitAkbota Yerseit
13:29 03 Jun 22
Excellent leaders!
Cathryne HaladnerCathryne Haladner
12:12 18 Sep 21
We have only superlatives to describe how wonderful Cris Buzolin was throughout the process of selling our townhouse in Coral Gables. We were away in the UK while the transaction was taking place and Cris handled everything-from clearing out our house, selling contents when she could, arranging the moving and storage and dealing with some very difficult problems which arose. Always patient and very willing to help in every way, Cris is a consummate professional who really cares about her clients and worked extremely hard to get the price we had asked for and make things for us as easy as she could. Nothing was too much for her to handle.Cris and Marianela (who provided additional very helpful assistance to us during the transaction) are part of the team that David Siddons has assembled.When we decided to sell our property, we contacted David and he established the framework for the transaction and ensured that everything proceeded smoothly and in accordance with our wishes. In sum, David Siddons and his team are extremely competent and professional and we are totally satisfied with the service they provided. To repeat, Cris Buzolin in particular, went way beyond what one would expect from a real estate agent. The David Siddons Group has our highest recommendation!
Jose Eduardo FilhoJose Eduardo Filho
17:17 13 Jul 21
I thank the whole team and especially Cris Buzolin who, in a very professional and competent way, helped me to sell my property safely and in the best market condition.
Idan Singh (Idan)Idan Singh (Idan)
19:53 07 Jun 21
Great Service for British Expats looking to move to the States.
Simone GarrettSimone Garrett
17:20 26 Feb 21
Fantastic group of people to work with!! David and Adriana were responsive and professional throughout the entire process. We weren't familiar with South Florida so David took us under his wing and did a fabulous job giving us a tour of select neighborhoods in South Florida and shared a great deal of information about each. We fell in love with the Botaniko community in Weston and closed the deal with Adriana. If you are buying/selling this is the team you want to work with!! Thank you guys for helping us find our dream home.
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