We were talking to a new Florida resident the other day in our office. After a lifelong career in media in New York, he called it a day and moved to South Florida to retire.
Part of our conversation revolved around what he needs to do to establish residency in Florida and avoid any future entanglements with tax authorities in New York.
So it was perfect timing when we spotted financial journalist Sandy Block’s article on the subject in the latest edition of Kiplinger’s Personal Finance magazine.
Sandy points out in her article that switching your residence to Florida, a state with no income tax, could be a smooth financial move.
“Claiming the Sunshine State as your permanent residence could save you a lot of money. Florida has no state income tax, whereas New York has a top income tax rate of 8.92%,” she says.
If you’ve decided to relocate, just plan on crossing your “t”s and dotting your “i”s when it comes to proving your intent. That means changing your driver’s license, car and voter’s registration, health insurance, bank accounts and community affiliations, and filing a Declaration of Domicile with county officials. If you buy property in Florida, make sure to file for your homestead exemption to benefit from homestead protections and applicable property tax reductions.
Lastly, don’t forget to keep your tax and financial advisors in the loop; they can give you valuable pointers and help ease the transition to your new home.