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Tax Benefits of Moving to Florida

[Music] did you know on average 950 people moved to florida every single day in 2020 the sunshine state attracts new residents with great tax incentives and of course beautiful beaches the three greatest financial benefits are number one florida doesn't have income or estate tax number two florida offers great property tax benefits and number three florida has one of the best homestead exemptions in the country the florida constitution prohibits the collection of state income tax this is a pretty big deal given that all but seven states levy income tax on their residents for example income tax rates from 2021 range up to 8.82 in new york and up to 13.3 in california that's huge you can see that high income earners will save a ton of money by relocating to florida the lack of an estate tax makes the state especially attractive to retiree there is no inheritance tax here and beneficiaries don't pay federal or state income tax on inherited funds there is a federal estate tax but it only applies to an inheritance that exceeds 11.58 million dollars what about number two those tax incentives if you become a permanent resident in florida you can apply for a homestead exemption on your primary residence florida offers exemptions from property tax assessments of up to 50 000 on homesteaded property the first 25 000 of assessed value is exempt from all property taxes including school district taxes the second 25 000 is taken from the property value between 50 and 75 000 and applies to all taxing authorities except school board taxes the save our homes act the legislation that grants the homestead exemption works like this a homestead's property tax will not increase more than three percent no matter how high property values climb if it's a second home they will not climb more than 10 annually this saves residents from facing significant tax increases during periods of real estate price increases floridians can take these savings with them when they move from one florida property to another this is called homestead portability the maximum tax benefit a homeowner can port is five hundred thousand dollars if you buy a more expensive home you will transfer the dollar amount if you buy a less expensive home the portability transfers the percentage value of the previous deduction in 2020 floridians voted to pass amendment 5 that increased the portability time frame from 2 to 3 years florida offers great financial benefits but it also affords a great quality of life to learn more about relocating to south florida and specific neighborhood amenities head on over to the site for intelligent real estate

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Florida Retirement

Posted in Retire Wealthy, Retirement Planning

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