Recently, the Palm Beach area has seen an influx of new out-of-state residents looking to make Florida home. It’s no secret that the Sunshine State has long been a favorite destination for East Coast retirees looking to leave colder winters for beachside living. However, there are now people buying homes here for a different reason—Taxation. Here is what you need to know about the tax-driven migration of homebuyers to the Palm Beach area.
The SALT Tax
In 2017 the Tax Cuts and Jobs Act made some of the most significant tax law changes in recent history. One of its measures capped the “SALT”, or state and local tax deduction, at $10,000 for state real estate, income, or sales tax. Previously, state taxpayers had been able to take these tax deductions without limitation. With this reduction, higher wage earners in some states are now facing significant increases in their state tax liability.
Migration of Taxpayers
Recently, it appears that a significant number of affluent residents from states with higher taxes such as New York, New Jersey, and Connecticut have been moving into the Palm Beach area. Unlike these jurisdictions, Florida, does not impose a state income tax. Therefore, residents from these states who have chosen to relocate here, will enjoy significant tax savings. These new residents also appear to be drawn to the Palm Beach area’s luxury homes, beautiful oceanside views, superior amenities, and exclusive lifestyle offerings.
As an increasing number of prosperous residents are leaving higher-tax states for Florida, there has also been a noticeable trend of larger businesses transferring their headquarters and operations into the state. With commercial real estate rents rising in corporate centers such as New York, several financial firms have opted to relocate their operations to areas such as West Palm Beach. Additionally, Florida’s business-friendly laws and taxation have made it an attractive place for those looking to establish their commercial interests.
Contact the Florida Board Certified Real Estate Attorneys of Rabideau Klein
At Rabideau Klein, we have extensive experience handling multi-million-dollar transactions for high-end residential and commercial real estate, land use, finance, cross border, and business formation. Guy Rabideau, Esq. and David E. Klein, Esq. are also Florida Board-Certified Real Estate Attorneys with the expertise and experience you need to protect your interests during your Palm Beach luxury real estate lease or purchase. Contact Rabideau Klein today to discuss your Palm Beach real estate legal needs.