Why one woman bolted from ‘tax haven’ Florida, and others are leaving too

2 hours ago 7

Florida has fallen from grace arsenic a 'tax haven' — prompting Lorraine English, 72, to determination from Bradenton, Florida, to Asheville, North Carolina, due to the fact that of frightening earthy disasters and the rising outgo of homeownership successful the state.

Marketed arsenic a taxation haven, Florida lures immigrants with promises of zero income taxation and peculiar taxation breaks that accrue to long-time homeowners. (1) It's a almighty gully for residents of states with precocious income taxes, similar California (up to 13.3%) and New York (up to 10.9%). (2)

Must Read

Thanks to Jeff Bezos, you tin present go a landlord for arsenic small arsenic $100 — and no, you don't person to woody with tenants oregon hole freezers. Here's how
Robert Kiyosaki says this 1 plus volition surge 400% successful a twelvemonth and begs investors not to miss this ‘explosion’
Dave Ramsey warns astir 50% of Americans are making 1 large Social Security mistake — here’s however to hole it ASAP

But storms person swept distant immoderate of the fiscal benefits of surviving wrong the Sunshine State. On apical of weathering a spate of earthy disasters, Florida homeowners similar English person been blindsided by different costs. One of the biggest fees: location insurance.

Income taxation haven, security hellhole

Florida is the astir costly location security marketplace (3) successful the country.

"Two years ago, my homeowners' security with hurricane sum — not including flood insurance, which is simply a abstracted argumentation — went up to $7,000 a year," English told Business Insider. (4)

How different states stack up: Assuming $300,000 of dwelling coverage, the emblematic American pays $2,543. Insurance.com says Florida residents wage $7,136 for identical coverage. (5)

Florida location security has gone up due to the fact that of security fraud, ostentation of operation costs, and earthy disasters, experts say. (6)

"The past tempest I went done successful Florida was Hurricane Milton," English said. She spent $6,500 fixing harm to her excavation cage and considered herself "lucky."

Florida's taxation haven presumption is charismatic to residents successful states with precocious income taxes. Kiplinger says a retiree earning $70,000 per twelvemonth successful New York could wage astir $4,000 successful authorities income taxation connected their status income, whereas moving to Florida would destruct that tax. (7)

How overmuch of that savings is near aft location security fees? For a argumentation connected a $600,000 house, the emblematic NY homeowner pays $3,021. (8) The emblematic Floridian pays $13,729. Say you and your spouse are redeeming $4,000 each due to the fact that of zero income taxes. If your household pays $8,000 little for income taxes but pays $10,000 much for location insurance, is it worthy it?

Read More: This $1B backstage existent property money is present accessible to non-millionaires. Start investing with conscionable $10

Property taxes are rising

Florida has besides been collecting much spot taxes from residents. Some accidental it's been making lodging little affordable. The nonprofit Florida TaxWatch says authorities levies person much than doubled implicit the past decade, faster than the gait of ostentation and colonisation maturation combined. (9)

Another crushed spot taxes are rising: lodging prices person spiked. Home prices roseate from astir $250,000 to $375,000 successful 2026 compared to the opening of the pandemic, according to Zillow. (10)

For spot taxes, Florida ranks middle-of-the pack. Its effectual spot taxation complaint of 0.79% is amended than galore states. (11) Since caller homeowners from out-of-state don't instantly payment from spot taxation caps, the champion rates are astir apt exclusive to local, long-time residents. (12) Florida spot taxes are capped by the Save Our Homes Amendment. (13)

English cited rising spot taxes arsenic 1 of the reasons she near Florida. "...my spot taxes were astir $3,000 a year," English said. "Altogether, I was looking astatine astir $10,000 a twelvemonth conscionable for security and taxes."

Residents migrate to prevention

Other Floridians are leaving the authorities to debar rising bills, too.

Sydney Buckley and her husband, René Barajas Jr., moved from the West Palm Beach country to Greenville, South Carolina, successful 2025. The mates told the Wall Street Journal they couldn't find immoderate houses successful Florida wrong their budget. (14) In South Carolina, they recovered and bought a $350,000 house.

The owe outgo is lone $100 much than they were spending connected rent for their flat successful Florida. The mates besides said they wage overmuch little spot taxation and security than they would person successful Florida.

The mates aren't the lone ones leaving for calmer pastures. In 2024, a whopping 506,246 radical moved from Florida to different state. U.S. Census information says apical destinations were Georgia (52,371), Texas (52,219), North Carolina (33,591), New York (28,080), and Pennsylvania (25,048). (15)

Why these states: Georgia, Texas, and North Carolina fertile arsenic affordable lodging markets. U.S. News ranks Florida's lodging affordability astatine #44 retired of 50, somewhat down New York. (16)

Florida remains a imaginable taxation haven for families and a almighty draw. But rising taxes and security premiums person to beryllium considered. If imaginable homebuyers adhd lone 1 happening to their homebuying checklist, fto it beryllium tenable homeowners insurance.