So Chris, how are the taxes in Florida?
Under the current 2019 state and local tax laws it is VERY beneficial to be a full time resident of Florida. Why? In short because the tax structure in Florida does NOT rely upon personal income taxes for revenue. AND the current federal tax law LIMITS to amount one can deduct for payments made to state and local taxes paid such as real estate and income taxes.
As of Jan. 1, 2018, the federal deduction for local taxes paid is capped at 10,000. That means you can deduct up to $10,000 in property and income tax or sales tax on Schedule A. Previously, this deduction was unlimited.
The amount applies to single filers and those married filing jointly as both are subject to the $10,000 limit. The max for a married person filing separately is $5,000 per. AND, you must still choose to deduct either your state income tax or sales tax. You cannot deduct both.
Yes, our real property taxes are higher, in fact they are high by comparison. In Boston the residential property tax rate is 10.54 per 1,000 of assessed value. Where as in Palm beach County it is 17.21 per 1,000. BUT Massachusetts also has a 3.24% personal income tax.
The difference is $667 per year more per 100k in value of a house to live in Florida BUT one saves $3,240 per 100k of income every year that is not paid in state income taxes.
According to wallet hub Florida is number 47 in terms of the overall tax burden. The taxes are lower only in Alaska, Delaware and Tennessee.
Source: WalletHub
