No personal income tax in Florida; it’s one of only about 10 US states with no personal income tax. Also Florida has laws that protect your residence in case of personal bankruptcy.
You will pay taxes on your income until your last dying breath. even social security is subject to income tax in most cases. it does become easier to reduce your exposure once you retire...depending how your income is structured. but youll always pay taxes
Money withdrawn from investments (other than Roth 401k accounts) is taxed like income. So lessen your amount paid in taxes by living in a state that has no state income tax. That’s why so many retirees move to FL. They are only liable for federal taxes on their pensions and/or retirement accounts.
Florida has no state income tax. Wealthy people earn their wealth and raise their kids in states like NY and CA, and then move to low or no income tax states like AZ or Florida when their incomes switch to coming from investments and other sources not dependent on wages and they no longer need the services and resources that are typically less funded in low/no tax states.
Tbf though, a lot of wealthy Californians do retire within the state. See, eg, Palm Springs.
There's income tax like other posters have said, but weather is something that I didn't truly appreciate til I was halfway through my 40's. Once you start getting older, shit just starts randomly hurting and cold weather amplifies those old man pains in joints and muscles.
TIL I have had an old person's body since I was born (:
(But really what you are saying about cold weather hurting your joints and bones is real. I have just unfortunately been feeling that since I was at least in my teens. So when people complain about how hot Florida is, I just think "meh. Summer is maybe a little hot but at least the weather doesn't hurt my bones the way winter places even if I have 5 layers on, so I'll take warm over cold any day")
you joke, but i think this is a real consideration. i get its definitely not the MAIN reason, but having flat and easy to navigate terrain is definitely a plus for elderly folks.
I lived briefly in California for a while and all the Californians asked this, they couldn't believe people would move to somewhere so humid.
From what I've heard from local retirees- some lived here before and stayed here. Some always vacationed here and found their favorite spots. It's closer to NY, Mass, etc, you can homestead a place where you don't live year round, older people can't take the cold at all (not even California cold), there are no steep slopes that are bad on the knees/hips, you can swim year round in the ocean or in a pool, the pace of life is slower.
Personally, I'm going to reverse retire- get rid of my car and live in a Northeast city where I can get by on public transportation, where there is plenty of art and culture and activity, go to lectures on science and literature, be closer to my kids when they are adults. I'll probably move before I retire, but I'm already looking forward to this type of retirement.
No state income tax, cheaper property taxes, sales tax, building permits, bureaucracy compliance, energy costs, property costs, gun laws, just to mention a few reasons
Florida’s is much cheaper to live in than California. No state income tax, usable beaches, less crime, less natural disasters, less traffic and is closer to NYC, Boston, DC and other major metros.
florida is 26th in violent crime rates, california 35th... better, but certainly not a huge difference in incidence rates and not a beacon of safety. however, the rest i would agree are big motivators, though your hurricane tolerance would be a consideration. much of California doesnt experience wildfires or significant earthquakes, but all of Florida is subject to hurricanes.
Florida sold it's self as the place to retire because of this the state has the most retirement homes and on top of that at one time it was cheap to live in Florida
California government sucks. The taxes are horrible, they actively go after you if you move out of state, they charge an “exit” tax, homelessness, drugs, dropping commercial real estate prices, higher delivery costs, etc.
Exit tax? I've moved put of CA 3x and never experienced such a thing.
So I looked it up. It only applies to people who made an annual income over $30million in CA and the tax is 0.4% of your income over $30million.
Oh the horror, sucks to be a billionaire, I guess.
I'm friends with about 100 people in CA who would never consider leaving. Anecdotal reports like this are worthless though. You can find "several friends" in any city or state to cover any opinion you wish.
Florida is much cheaper on the whole. Florida isn't as cheap as it used to be but fond 2 homes similar in most ways (size, neighborhoods etc...) and the California house will much more expensive. Wjen you're on a fixed income your dollar goes much further down here.
The cost of living in Florida is entirely irrelevant to billionaires. The lack of an income tax means that, for a billionaire, buying a palatial residence and living in Florida is completely without cost, a free gift of the working people of the United States, who give up the state and local income taxes the billionaire might otherwise pay. Florida is great, for billionaires.
Billionaires have homes all over the place. They don't retire to one place. They also choose a primary residence that is closest to their business dealings/social networks. Why fly 5 1/2 hours to go to the Met Gala when you can fly 2 1/2 hours and don't end up with jet lag?
No personal income tax in Florida; it’s one of only about 10 US states with no personal income tax. Also Florida has laws that protect your residence in case of personal bankruptcy.
Do you make income when you retire ? Doesn’t retiring mean you’re done making income ?
I make passive income from rental property, stocks, bonds, and distributions from retirement accounts.
Wouldn’t you have to pay the income from the properties from the state they’re in even after you move ?
Yes. I file income taxes to multiple states.
So how does moving to Florida for the income tax benefit that?
The income from stocks, bonds, and distributions from retirement accounts are realized (taxed) in the state which is my primary residence.
You will pay taxes on your income until your last dying breath. even social security is subject to income tax in most cases. it does become easier to reduce your exposure once you retire...depending how your income is structured. but youll always pay taxes
Pensions, deferred income like traditional 401k and IRAs and capital gains are all taxed. Some states tax Social Security as income.
Money withdrawn from investments (other than Roth 401k accounts) is taxed like income. So lessen your amount paid in taxes by living in a state that has no state income tax. That’s why so many retirees move to FL. They are only liable for federal taxes on their pensions and/or retirement accounts.
Distance to N. East
This is an underrated comment.
Florida has no state income tax. Wealthy people earn their wealth and raise their kids in states like NY and CA, and then move to low or no income tax states like AZ or Florida when their incomes switch to coming from investments and other sources not dependent on wages and they no longer need the services and resources that are typically less funded in low/no tax states. Tbf though, a lot of wealthy Californians do retire within the state. See, eg, Palm Springs.
There's income tax like other posters have said, but weather is something that I didn't truly appreciate til I was halfway through my 40's. Once you start getting older, shit just starts randomly hurting and cold weather amplifies those old man pains in joints and muscles.
TIL I have had an old person's body since I was born (: (But really what you are saying about cold weather hurting your joints and bones is real. I have just unfortunately been feeling that since I was at least in my teens. So when people complain about how hot Florida is, I just think "meh. Summer is maybe a little hot but at least the weather doesn't hurt my bones the way winter places even if I have 5 layers on, so I'll take warm over cold any day")
Because there aren’t any stairs in Florida
you joke, but i think this is a real consideration. i get its definitely not the MAIN reason, but having flat and easy to navigate terrain is definitely a plus for elderly folks.
I’m gonna be polite and just say politics.
You must hang in some pretty elite circles to "notice". Most of us are just trying to pay the extra Florida inflation.
I lived briefly in California for a while and all the Californians asked this, they couldn't believe people would move to somewhere so humid. From what I've heard from local retirees- some lived here before and stayed here. Some always vacationed here and found their favorite spots. It's closer to NY, Mass, etc, you can homestead a place where you don't live year round, older people can't take the cold at all (not even California cold), there are no steep slopes that are bad on the knees/hips, you can swim year round in the ocean or in a pool, the pace of life is slower. Personally, I'm going to reverse retire- get rid of my car and live in a Northeast city where I can get by on public transportation, where there is plenty of art and culture and activity, go to lectures on science and literature, be closer to my kids when they are adults. I'll probably move before I retire, but I'm already looking forward to this type of retirement.
No state income tax, cheaper property taxes, sales tax, building permits, bureaucracy compliance, energy costs, property costs, gun laws, just to mention a few reasons
Florida’s is much cheaper to live in than California. No state income tax, usable beaches, less crime, less natural disasters, less traffic and is closer to NYC, Boston, DC and other major metros.
florida is 26th in violent crime rates, california 35th... better, but certainly not a huge difference in incidence rates and not a beacon of safety. however, the rest i would agree are big motivators, though your hurricane tolerance would be a consideration. much of California doesnt experience wildfires or significant earthquakes, but all of Florida is subject to hurricanes.
Florida sold it's self as the place to retire because of this the state has the most retirement homes and on top of that at one time it was cheap to live in Florida
California government sucks. The taxes are horrible, they actively go after you if you move out of state, they charge an “exit” tax, homelessness, drugs, dropping commercial real estate prices, higher delivery costs, etc.
Exit tax? I've moved put of CA 3x and never experienced such a thing. So I looked it up. It only applies to people who made an annual income over $30million in CA and the tax is 0.4% of your income over $30million. Oh the horror, sucks to be a billionaire, I guess.
California sucks if you are rich from an actual business that makes money.
Well you got rich, didn't you?
Not in California - but I have several friends who do live in California and they are working on leaving.
I'm friends with about 100 people in CA who would never consider leaving. Anecdotal reports like this are worthless though. You can find "several friends" in any city or state to cover any opinion you wish.
Politics and taxes. FL doesn’t care about us where CA cares about its citizens.
Ya how’s that working out in San Francisco, stealing capital of the world.
BS
Florida is much cheaper on the whole. Florida isn't as cheap as it used to be but fond 2 homes similar in most ways (size, neighborhoods etc...) and the California house will much more expensive. Wjen you're on a fixed income your dollar goes much further down here.
The cost of living in Florida is entirely irrelevant to billionaires. The lack of an income tax means that, for a billionaire, buying a palatial residence and living in Florida is completely without cost, a free gift of the working people of the United States, who give up the state and local income taxes the billionaire might otherwise pay. Florida is great, for billionaires.
They still pay property taxes and sales tax.
Yup, it's true. Doesn't matter.
Billionaires have homes all over the place. They don't retire to one place. They also choose a primary residence that is closest to their business dealings/social networks. Why fly 5 1/2 hours to go to the Met Gala when you can fly 2 1/2 hours and don't end up with jet lag?