Source: Bloomberg, https://www.bloomberg.com/news/articles/2023-06-08/moving-to-miami-from-nyc-saves-high-earners-200-000-in-taxes?utm_source=chatgpt.com
According to a recent analysis highlighted by Bloomberg, Americans with high six-figure salaries can realize very large savings by relocating from high-tax cities such as New York to Florida. The study by SmartAsset estimates that someone earning about $650,000 annually could reduce their combined tax and living-cost burden by roughly $200,000 a year after establishing residency in Miami.
The primary drivers of that gap are state and local taxes and overall cost differences. New York and California impose substantial state income taxes and, in some cases, higher local levies; Florida, by contrast, has no state income tax, which means a high earner’s take-home pay increases materially after a move. In addition, expenses such as certain service costs, some housing-related costs and tax treatment of investment income can make a noticeable difference in annual outlays for wealthy households.
SmartAsset’s comparison also included other major metropolitan areas — including San Francisco and Chicago — and found that while the exact savings vary by income bracket and personal circumstances, the overall pattern is consistent: for many high earners, establishing Florida residency can yield tens of thousands of dollars, and in some scenarios (as noted above) savings approach the six-figure range. Bloomberg’s coverage frames these figures in the broader context of migration patterns and tax policy choices, showing how fiscal differences between states are influencing where affluent households choose to live.
