Florida pulls in billions amid high-tax state exodus
People moving from high-tax states to destinations with lower — or no — income taxes has been a boon to the coffers of some state governments, like Florida.
According to recent data from the IRS, the Sunshine State — a popular haven for people looking to lower onerous tax burdens of states like New York, New Jersey and Connecticut — benefitted from the trend.
The state raked in a net adjusted gross income of $16 billion in 2018. That's way more than any other state. Arizona, for example, raked in the second-highest total from migration at $3.5 billion.
BILLIONAIRES BOLT TO FLORIDA AMID HIGH-TAX STATE EXODUS
HERE'S HOW MUCH NEW YORK TAXPAYERS FLEEING TO FLORIDA CAN SAVE
Texas, another no-income-tax state, generated $3.4 billion. North Carolina and South Carolina followed the Lone Star State on the list. As previously reported by FOX Business, Arizona and South Carolina were two of the most popular destinations for movers last year because of the warmer climates and retirement opportunities.
On the flip side, two high-tax states – New York and California — lost a significant amount of adjusted gross income.
The Empire State lost $9.6 billion as wealthy individuals and businesses moved out. Recently, President Trump announced he had decided to change his domicile from New York to Palm Beach, Fla. Billionaire investor Carl Icahn is also headed to Miami, and billionaire hedge fund manager Leon Cooperman fled to Boca Raton.
California lost about $8 billion in 2018, New Jersey about $3.1 billion and Connecticut lost around $1 billion.
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The Tax Cuts and Jobs Act capped state and local tax deductions at $10,000, which is well below the average amounts claimed in places like New York and California.
Florida has long lured relocating residents with its lack of a statewide income tax, and inheritance tax. Meanwhile, New York's top income tax rate is more than 8 percent.
As previously reported by FOX Business, an individual or couple earning $650,000 in ordinary income could save $69,719 per year by moving from New York to Florida.