What Leaving New York Is Actually Worth: The Number Behind the Migration

Read more in my Sunny Isles Real Estate Newsletter for current market data.

By Rita Japhet, 305 450 6662 Broker-Associate, eXp Realty Luxury Group  |  Sunny Isles Beach, Florida  |  SunnyIslesRealEstate.com

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Key Takeaways

• A New York household earning $750,000 a year faces a combined state and city income tax approaching 14.8% at the upper brackets — while Florida imposes no state and no city income tax, returning a meaningful sum to the household every year.
• Estate planning compounds the advantage: Florida levies no state estate tax, while New York’s reaches up to 16% above its exemption — a generational figure for families holding significant assets.
• The SALT deduction, raised to $40,000 in 2025, phases back down to $10,000 for households above roughly $600,000 of income — so high earners see little relief, keeping the true cost of remaining in a high-tax state elevated.
• For a $2 million oceanfront purchase in Sunny Isles, the tax case is the easy part — the building, the line, and the price determine what that residence is worth a decade on.

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New Yorkers ask the same question once they have decided to move to Florida: not “what will I love about Florida,” but “what does this actually save me?” It is a fair question, and the answer is more substantial than most expect.

The Tax Math, Plainly Stated

Consider a household earning $750,000 a year, looking at a $2 million oceanfront residence in Sunny Isles. In New York City, that income meets a combined state and city tax approaching 14.8% at the upper brackets — before federal tax enters the conversation. Florida imposes no state income tax and no city income tax. On $750,000 of income, that distinction returns a meaningful sum to the household, every year, for as long as they live here.

Where the Savings Compound

The savings compound in two places people often overlook. The first is estate planning: Florida levies no state estate tax, while New York’s reaches up to 16% above its exemption — a generational figure for families holding significant assets. The second is the SALT cap, which since 2018 has limited the federal deduction for state and local taxes to $10,000, sharply raising the true cost of remaining in a high-tax state for high earners.

Why New York Wealth Is Moving South

None of this is theoretical. It is the structural reason New York wealth is relocating to South Florida, and why Sunny Isles — oceanfront, private, internationally connected — sits at the center of that movement. The decision is rarely about a single tax line. It is about where a family’s capital is best stewarded over the next twenty years.

The Decision That Actually Matters

What I tell every relocating family is this: the tax case is the easy part. The more consequential decision is which building, on which line, at what price — because in this market those choices, not the move itself, determine what a $2 million purchase is worth a decade on. That is the conversation I am here for. Rita Japhet 305 450 6662

Disclosure: I am a licensed real estate professional, not a tax or legal adviser. The figures above are general information, not personalized tax advice. Please consult your CPA or attorney regarding your specific situation.