Doug Spence says he moved from Ohio to Florida to declare residency, and is now saving thousands.
“Taxes in Ohio are both state and local community, and in Florida, there’s no income tax and so it’s a big advantage,” Spence said.
And he’s not alone.
Ryan Schwartz, the owner of Florida Realty and Company, works closely with his out of town clients to find them perfect homes in Naples. And thanks to new tax laws, he’s closing deals faster than ever.
“I would say we are definitely seeing an increase in people wanting to move more quickly and declaring residency because of the tax changes that are happening throughout the country and there’s a higher demand,” he said.
After the recent tax reform, the amount of state and local income, property or sale tax that taxpayers can deduct is capped at $10,000. Florida has no income tax, and generally has lower property taxes.
“Taxes vary by county, but your tax rate here in Naples is 1.25 percent of the appraised value of your home,” Schwartz said.
And that’s attracting taxpayers in high-tax states and making them new Florida residents.
“It’s significant enough, if you’re able to be here for more than five months, it’s significant enough to stay here long enough to get residency, register your car, get all of that stuff,” Spence said.
It’s a deal more people are starting to get behind, from Naples to Miami, where high-rise condominiums are selling out to northerners warming up to Florida’s favorable tax climate.
“We’re definitely seeing a positive trend here,” Schwartz added.
Officials say as of right now, the Collier County population is about 350,000. They’re expecting that number to jump well beyond 400,000 over the next few years.