Many tourists end up becoming part-time or full-time residents of the Sunshine State; as they become enamored with our beaches, breathtaking sunsets and multi-cultural lifestyle. But that’s not all that Florida has to offer for homeowners in our amazing state!
Here are the top 4 benefits of living in Florida that will not put a big dent in your bank account.
No Individual Income Tax
Florida is one of only seven states that don’t collect an individual income tax. Moving to Florida from a state like New York can save someone in a high-income tax bracket, many thousands of dollars in taxes.
This prohibition against collecting an individual income tax is part of the Florida Constitution so Florida won’t be imposing a state individual income tax anytime soon. A constitutional amendment would be required to change this provision.
No State Estate (Death) Tax
Florida’s constitution also prohibits the imposition of a state death tax.
Moving to Florida from a state like Massachusetts or New York could save a family considerable money when a loved one dies.
Offers Many Asset Protection Benefits
You shouldn’t have to worry about losing your assets to a creditor or in a lawsuit if you live in Florida. The state offers many asset protection benefits, including:
Homestead creditor protection
- Tenancies by the entirety for real property as well as personal property
- Protection of the cash value of life insurance
- Protection for IRAs and annuities, and
- Protection of assets held in a properly structured business entity
- A creditor can’t claim your home to satisfy a debt unless it’s the mortgage lender.
Property Tax Benefits for Primary Residences
You’ll also receive two property tax breaks if you buy a home in Florida and declare that it’s your primary “homestead” residence.
First, you’ll receive an exemption for the first $50,000 of your home’s value for property tax purposes, except for school district taxes which only receive a $25,000 exemption.
There’s also the Florida “Save Our Homes” cap on annual assessments. The cap is set at 3 percent or the change in the consumer price index (CPI), whichever is less. It means that the assessed value of your homestead for property tax purposes can’t increase on annual basis by more than the change in the CPI or 3 percent if the change in the CPI is more than 3 percent.
Just 4 more reasons to love Florida even more!