Warm weather, blue waves, Cuban food and Disney World – do you really need more reasons than that to move to Florida? If the Wizarding World of Harry Potter and manatees don't do it for you, maybe the lax income taxes and plentiful credits will. If you're a little less easily persuaded – or maybe just really fiscally responsible – you'll be happy to know that in Florida, the sun shines on plenty of tax perks.
In terms of taxes, one of the key benefits of moving to Florida is what isn't there – namely, state income taxes. Alongside just six other states in the U.S., Florida does not impose income tax. The law is written in the state constitution, making it highly unlikely to change, and even better, that constitution prohibits municipalities and counties from levying personal income tax too.
Similarly, via its 2001 Economic Growth and Tax Relief Reconciliation Act, the Sunshine State does not impose a state death tax or a state-level estate tax. In response to conservative tax reform passed in late 2017 that limits tax deductions for many earners, among other measures, Florida Governor Rick Scott told the New York Post, "I want to personally welcome anyone escaping high tax states to join the hundreds of thousands of their former neighbors who have already moved to Florida."
Florida Tax Benefits: Personal
The tax advantages of living in Florida don't end at the lack of state income tax; many perks come in the form of personal tax breaks. If you own a home in Florida, the Save Our Home Act provides a homestead exemption, protecting the first $50,000 of your home's taxable value from taxation (except for school district taxes, which only have a $25,000 exemption – but it's for a good cause).
When it's time for your kids to hit the books, don't sweat the taxes. Every August, Florida hosts a tax-free weekend for school supplies that cost up to $60. Don't forget the other summertime tax holiday, which removes taxes on preparedness items like portable lights, radios, first-aid kits, generators and batteries.
Florida Tax Benefits: Business
Like its actual climate, Florida's tax climate is extremely welcoming to businesses. Here's just a sampling of the business-related taxes you won't have to pay in the Florida: corporate income tax on limited partnerships or subchapter S-corporations, corporate franchise tax on capital stock, property tax on business inventories or goods-in-transit (for up to 180 days on the latter), sales tax on the purchase of raw materials for use in a product intended for resale or sales or use tax on the co-generation of electricity.
As a state all too familiar with rising sea levels, Florida also offers a bevy of environmentally minded exemptions. These include exemptions for the use of electricity or steam used in manufacturing, natural gases used to generate electricity and solar energy systems.
With all the tax advantages of relocating to the Sunshine State, it makes sense consider that second or permanent home in a State that offers incentives. Whether you're ready to move, or considering a change in your life, reach out to us, we can help.
By Dan Ketchum
Live Naples Luxury
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