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Tax benefits of moving to Florida

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Real Estate Agent with Realty ONE Group-MVP
Tax Benefit by Moving to Florida 
 
A GREAT marketing tool when prospecting for Buyers who live out of Florida is the TAX BENEFIT by moving to Florida. Individual savings in taxes may help ease the pain of rising home prices for Buyers? It certainly helps! Use this information to assist you when selling Real Estate in Florida
 
Following is a previous article in FloridaRealtors:
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How ‘Tax-Friendly’ Is Fla. Compared to Other States?

A MoneyGeek study including IRS, state, property and sales taxes listed Fla. as the No. 4 least-expensive tax state. Total tax costs are about 5.6% of total income.

TAMPA, Fla. – It’s tax filing season and depending on where you live in the U.S., you could be forking over a very different-sized chunk of your income.

An analysis by MoneyGeek ranked every state by how “tax-friendly” it is. The analysts didn’t just look at income tax – they also factored in property taxes, plus state and local sales taxes.

To determine where people pay the highest tax burden, MoneyGeek looked at a hypothetical average family: a married couple with one kid, earning the median national income of $82,852, owning a $349,400 home. The study breaks down how much this fictional family would pay in taxes in every state.

The states with the lowest tax burden, according to the analysis, were:

  1. Wyoming (estimated taxes: 4% of income or $3,279)
  2. Nevada (estimated taxes: 4.7% of income or $3,879)
  3. Alaska (estimated taxes: 5.4% of income or $4,507)
  4. Florida (estimated taxes: 5.6% of income or $4,632)
  5. Tennessee (estimated taxes: 6.5% of income or $5,377)
  6. Washington (estimated taxes: 6.5% of income or $5,414)
  7. North Dakota (estimated taxes: 6.7% of income or $5,556)
  8. Arizona (estimated taxes: 6.8% of income or $5,665)
  9. South Dakota (estimated taxes: 7.2% of income or $5,938)
  10. Delaware (estimated taxes: 7.3% of income or $6,074)

The states with the highest tax burden were:

  1. Illinois (estimated taxes: 16.8% of income or $13,894)
  2. Connecticut (estimated taxes: 15.1% of income or $12,545)
  3. New Jersey (estimated taxes: 14.3% of income or $11,872)
  4. New Hampshire (estimated taxes: 14.1% of income or $11,694)
  5. New York (estimated taxes: 13.9% of income or $11,495)
  6. Iowa (estimated taxes: 13.8% of income or $11,398)
  7. Wisconsin (estimated taxes: 13.2% of income or $10,976)
  8. Vermont (estimated taxes: 12.6% of income or $10,453)
  9. Nebraska (estimated taxes: 12.6% of income or $10,446)
  10. Michigan (estimated taxes: 12.4% of income or $10,239)

Based on its analysis, MoneyGeek also gave every state a letter grade on its “tax friendliness.” The states with A grades have the lowest tax burden on an “average” family, while the states with D or E grades have the highest tax burden.

MoneyGeek’s estimates only hold true for that hypothetical family,earning about $82,000 a year with a $349,000 house. A family who just bought a $1 million house in California would probably be paying a lot more in taxes, while a single person earning $40,000 in Texas would be paying less.

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Posted by

Joseph D.  Federico, Realty One Group-MVP - Serving my clients in Naples, Bonita, and Cape Coral just to name a few.

Joseph D. Federico

Realty One Group-MVP

1495 Pine Ridge Rd.

Naples, FL 34109

"Neighbors Helping Neighbors"

www.Joefed.com

realtorjoefederico@icloud.com

 

 

 

 

 

Comments(3)

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KAREN SANCHEZ
Reputable Realty - Apple Valley, CA
...Marketing your home like no one else will.

Interesting stuff!  I'm going to go find that article and see how CA and TX rate.  Thanks! 

Feb 13, 2024 02:14 PM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Joseph D. Federico FL is a very attractive state, with NO state income tax!

Feb 13, 2024 03:16 PM
Joyce M. Marsh
Luxury Home Couture - Daytona Beach, FL
Joyce Marsh Homes & Design

No state income tax and relatively more affordable property taxes as well. Those are good reasons to consider Florida as an option.

Feb 13, 2024 09:11 PM