New York vs Florida Taxes
Compare the total tax burden between New York (4% – 10.9%) and Florida (no income tax). Enter your income to see which state saves you more.
New York vs Florida: Why half a million New Yorkers moved south
The New York to Florida pipeline is America's second-largest tax migration route, and it accelerated dramatically during and after the pandemic. New York imposes some of the highest combined tax rates in the nation: a top state rate of 10.9% plus a New York City income tax of up to 3.876% for city residents, creating a combined top marginal rate near 14.8%. Florida charges zero state income tax.
This comparison hits especially hard because of the SALT (State and Local Tax) deduction cap introduced in 2017. Before the cap, New Yorkers could deduct their full state and local taxes from their federal return, softening the blow. From 2018–2024 the cap sat at $10,000. Under OBBBA (2025+) the cap rose to $40,000 ($20,000 MFS), but it phases out $1-for-$1 for MAGI above $500,000 ($250,000 MFS) and reverts to a $10,000 floor — so a New Yorker earning $500,000+ still bears most of the state-tax cost with minimal federal offset.
Florida has positioned itself as a financial hub alternative, with Miami's Brickell district attracting hedge funds and financial firms from Manhattan. The state has no estate tax either, which matters enormously for wealthy retirees—New York's estate tax kicks in at $6.94 million with a "cliff" that can tax the entire estate if it exceeds the threshold by even a small amount.
Key Differences Beyond Income Tax
| Category | New York | Florida |
|---|---|---|
| Property Tax | Effective rate ~1.40% statewide; NYC properties often assessed below market value | Effective rate ~0.80%, with homestead exemption reducing taxable value by $50,000 |
| Sales Tax | Base rate 4%, combined up to 8.875% in NYC; clothing under $110 is exempt in NYC | Base rate 6%, combined up to 7.5% in some counties; no tax on groceries or clothing |
| Estate Tax | State estate tax with $6.94M exemption and a punitive "cliff"—exceed it by 5% and the entire estate is taxed | No state estate tax; only federal estate tax applies ($13.99M exemption in 2025, rising to $15M in 2026 under OBBBA) |
| Cost of Living | NYC is one of the most expensive cities globally; upstate NY is moderate | Miami and Naples are expensive but 20-30% below Manhattan; rest of state is affordable |
| City Income Tax | NYC residents pay an additional 3.078%-3.876% city income tax on top of state tax | No city or county income taxes anywhere in the state |
Who Benefits from Moving?
Finance professionals
Wall Street professionals relocating to Miami can save $50,000-$100,000+ annually in combined state and city income taxes. The growth of Miami's financial district has made this move professionally viable without sacrificing career opportunities.
Retirees with estates over $5M
New York's estate tax cliff makes Florida especially attractive for wealth preservation. A $10M estate could face over $1M in New York estate tax that simply doesn't exist in Florida.
Remote knowledge workers
If your employer allows remote work, moving from NYC to Florida can save $8,000-$15,000 per year on a $150K salary in state and city taxes alone, plus lower housing costs.
Bottom line: A NYC resident earning $300,000 pays roughly $22,000 in combined state and city income taxes. In Florida, that number is zero—a savings that dwarfs any difference in property tax or sales tax.
Tax at Different Income Levels
| Income | New York Total Tax | Florida Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,939 | $13,687 | Save $3,252 |
| $100,000 | $25,828 | $21,099 | Save $4,729 |
| $150,000 | $44,396 | $36,542 | Save $7,854 |
| $200,000 | $61,865 | $50,885 | Save $10,979 |
Based on single filer, standard deduction, 2025 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $4,729/year ($394/month) in Florida vs New York.
Tax structure
New York uses progressive brackets up to 10.9%, while Florida has no state income tax.
Effective rate at your income
At $100,000, Florida's effective state rate is 0.0% vs 4.7% in New York — a 4.7 percentage point gap.
New York local taxes
New York City residents pay an additional 3.1-3.9% city income tax on top of state tax.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) can save 3-4% on city tax, but commuter taxes and higher property taxes may partially offset the savings.
Tip: No state income tax means your take-home pay is among the highest nationally. Florida does not tax retirement income, Social Security, or investment income at the state level, making it one of the most tax-efficient states for retirees and investors.
Understanding Each State
New York
New York's state income tax has progressive brackets reaching 10.9%. New York City residents pay an additional city income tax of 3.078-3.876%, making the combined state+city marginal rate up to 14.776% — the highest combined rate in the nation. The Yonkers surcharge adds another 16.75% of state tax for Yonkers residents.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) can save 3-4% on city tax, but commuter taxes and higher property taxes may partially offset the savings.
Florida
Florida has no state income tax, funded instead by a 6% state sales tax (plus local additions up to 2%) and property taxes. This makes Florida especially attractive for high earners and retirees. Florida's population has grown rapidly, partly driven by tax migration from high-tax states like New York and California.
Tip: No state income tax means your take-home pay is among the highest nationally. Florida does not tax retirement income, Social Security, or investment income at the state level, making it one of the most tax-efficient states for retirees and investors.
Key Comparison Points
Income tax structure: New York has a progressive income tax (4% – 10.9%), while Florida has no state income tax.
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA (2025+), the federal SALT cap is $40,000, phasing out above $500,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in New York or Florida?
Based on income tax alone, Florida has a lower tax burden. At $100K income, you'd save $4,729 annually in Florida compared to New York. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from New York to Florida?
A single filer earning $100,000 would save approximately $4,729 per year in total taxes by living in Florida instead of New York. At $150,000 income, the savings change to $7,854 per year.
What is the income tax rate in New York?
New York has a progressive income tax with rates of 4% – 10.9%.
What is the income tax rate in Florida?
Florida has no state income tax.
Does Florida have income tax?
No, Florida does not levy a state income tax. Residents pay only federal income tax and FICA. However, Florida may have higher property taxes or sales taxes to compensate.