When it comes to upping sticks, many of us choose a destination based on factors such as geography, employment or educational opportunities or seeking a better climate. The state of Florida is famed for all of these reasons – from being home to blue-chip companies, to its vibrant mix of cultures, diverse native wildlife and balmy climate. But what if living there could also make you wealthier? Buying a home need not be the preserve of the super wealthy. Here’s how becoming a Florida resident could benefit your bottom line:
Property Tax Benefits
If you choose to have your primary residence in the state, you can benefit from two property tax breaks. There is an exemption of $50,000 of value in property tax, paired with what is known as the ‘Save Our Homes’ 3% cap on annual assessments. This means that the assessed value of your home for tax purposes cannot be raised by any more than this amount (or the change in the Consumer Price Index) meaning that as your home steadily gains in value you won’t be penalised. And it’s easy to find homes for sale with a host of new build properties coming onto the market in recent years.
Access to Top Wealth Managers
As this state offers so many tax and property advantages, many top financial advisors, estate planners etc choose to call it home as well. That means that you’ll have good access to the top talent who can help you actively manage your income, plan for retirement and avoid probate. Making smart connections can help to grow your personal net worth.
Protection for your Assets
Moving to Florida also offers more protection from potentially devastating sources of litigation. Protection from annuities, homestead creditor protection and protection of the cash value of life insurance are just a few of the benefits well-looked after residents of the Sunshine State enjoy. Once you’ve amassed that extra wealth, you’ll want to do all you can to safeguard it.
There’s no Individual Income Tax
Florida is only of only seven states in the US that doesn’t collect income tax on an individuals at a state level. If you’re paying a high amount of tax, you’ll be far better off coming home to Florida than to a state such as New York. Regulations against individual income tax are written into the state Constitution, so that’s a scenario that won’t be changing any time soon!
…And There’s No State ‘Death Tax’ Either
Those looking to safeguard their wealth for the next generation to inherit are also better off in Florida. When federal laws phased out the ‘pick up tax’ – a duty on estates – back in 2005, many states opted to replace it with other legislation, but once again Florida’s Constitution worked in its’ residents favour, with a prohibition on estate taxation after an individual’s death- meaning that you could have far more wealth to pass on to your children than in a neighbouring state.
So not only can you have a fabulous home and lifestyle in Florida, but living there can actually increase your net worth significantly!