From sparkling waters along miles of pristine sand to glorious weather that greets warmly year-round, there are dozens of reasons people call South Florida home. With a multitude of activities and attractions available to residents known throughout the world many times over, there’s one colossal perk that comes along with the tropical life many people overlook: lax tax laws. Ranked for decades by the Tax Foundation as one of the states with the 10th lowest levy’s in the nation and 7th all around by WalletHub in 2019, Florida’s families not only enjoy the tranquil environment, their economic burdens are also breezy.
Disney and our beaches may be major tourist draws but living in Miami has a few financial perks not available unless you reside in Florida. Here are some ways to help make the most out of your money when you move down to the Sunshine State.
No income tax
One of only seven states that impose no income tax on its residents, Florida’s families feel these incentives from the top. Uncle Sam is friendly on our wages permitting us to save money for homes, education, vacation, and whatever else our hearts’ desire.
No inheritance or estate tax
Seniors flock to Florida by the droves for more than just the kind climate, many are thinking about their descendants. With no inheritance or estate tax, residents side-step this golden-year burden while getting a tan on one of our many world-renowned golf courses.
No intangible tax
Assets come in various forms, with some a little less concrete than others, making them difficult to calculate. Especially if they’re being taxed. Thankfully, Floridians don’t have to worry about portfolios getting raided because in 2006 the State repealed levies on stocks, bonds, and mutual funds owned by people or businesses under $250k (or $500k for joint filers). Everything above this amount gets hit with only 50 cents for every thousand dollars.
It’s one of the reasons commerce tends to thrive under our sun.
No vehicle property tax
Annual registrations are simplified thanks to this ace. Cruising on our open expressways is convenient as well as economical.
No state property tax
Florida does not collect property tax from their residents. Although our counties do generate some revenue through a due like this of their own, they all vary depending on which one you call home, allowing us many options.
The handicapped, elderly, and veterans are assisted even further, being exempt from some, if not all, property taxes to facilitate the lives of the men and woman who serve our country or those in trying conditions.
Wait, there’s a catch… but it comes with a catch, too
Floridians like to joke that we make up for our lack of income tax with our 6% sales tax. A bit high when looking at our neighbors around the country, it can turn some people off to the idea of becoming a beachcomber.
But never despair, as this little caveat comes with a loophole.
Sales taxes can be deducted at the end of every year when we file our returns. The IRS even has a sales tax calculator to help estimate how much money you can expect back. And this applies to large-scale purchases like cars or boats, too.
Like mom always said, save your receipts!
Are you dying to live the Florida lifestyle? The Audrey Ross Team at MiamiRealEstate.Com can find your family’s new home letting you experience how it feels to have summer year round. Give us a call at (305) 661-4003 or drop us a line here.