People often talk about the nice weather and local attractions when discussing reasons to move to Florida. However, another thing to consider is the advantages of Florida taxation. Lower taxes help provide financial relief to individuals and businesses.
If you are not from Florida, you might not be aware of the many benefits of the state’s tax structure. This post will cover some of what makes Florida taxes so attractive.
One of the headlines is that Florida does not levy an individual income tax. That means residents pay no income tax to the state, no matter how much they make. Comparing that to a state like New York, residents could pay as much as 10.9% income tax. Taxes could take a considerable chunk from your earnings if you are a New Yorker in the higher tax brackets.
Property taxes can be tricky to measure because various exemptions and credits often exist. However, you can look at the average effective rates for a state. Florida is in the middle, with an effective property tax rate of around 0.89%. It is lower than the national average. The rate is also much lower than in New York, Texas, and New Jersey. However, it is important to note that individual rates will vary depending on several factors.
People should also consider sales tax when comparing states. Florida has a state sales tax of 6%. That is higher than the 4% statewide sales tax in New York. However, you should consider the local sales tax that may also apply. The average local sales tax in Florida is just over 1%. In New York, the local average is over 4.5%. That means after adding those taxes together, you will pay lower sales tax in most of Florida than in NY.
With so many different types of taxes, it can help to have one number to consider. A recent report considered various taxes individuals pay to determine the overall tax burden in different states. It covers income tax, sales tax, and property tax. Florida ranks as a state with one of the lowest overall tax burdens. The average resident pays about 6.33% of their income in state taxes. By comparison, the report lists NY as the state with the highest tax burden. State taxes take approximately 12.47% of the average NY resident’s income.
Florida is a place with favorable tax laws. The benefits of Florida’s taxes become even more apparent when compared to other states. It is one of the reasons many people leave other states to live in Florida.
Are you considering a move to Florida? Let Marion Ott help you find a home. Marion is a knowledgeable real estate professional in the Miami area. She would be happy to guide you through Florida’s real estate market. Click here to get in touch.
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