Own Luxury Homes®
Own Luxury Homes® New York vs. Florida Tax Index™
Own Luxury Homes® New York vs. Florida Tax Index™: NYC combined income tax rate 14.776% (NY 10.9% + NYC 3.876%): $147,760/yr on $1M income vs. FL $0. Westchester County property tax ~2.0-2.8%: $40K-$56K/yr on $2M home vs. FL ~$16,600 (0.83%). $500K income Westchester professional moving to Palm Beach: $85,900/yr combined savings. NY domicile audit risk: NY assesses statutory residency for 183+ days in state even after domicile change. Own Luxury Homes® 12-Point Agent Integrity Audit™.
Own Luxury Homes® New York vs. Florida Tax Index™
New York imposes the most severe combined state and local income tax burden of any major U.S. real estate market. New York City residents pay a combined 14.776% rate — New York State’s 10.9% top rate plus the NYC city income tax of 3.876%. On $1 million in income, that is $147,760 per year sent to Albany and City Hall before federal taxes are calculated. Florida charges zero. The annual after-tax difference between a Manhattan professional and an equivalent Palm Beach professional is not a lifestyle preference — it is a compounding financial event that produces a measurable, quantifiable wealth gap over any multi-year horizon.
01 — New York vs. Florida: Annual Tax Cost by Income Level
| Annual Income | NYC Combined Tax (14.776%) | NY State Only (10.9%) | Florida Tax (0%) | Annual Savings NYC → FL | Annual Savings NY State → FL |
|---|---|---|---|---|---|
| $200,000 | $29,552 | $21,800 | $0 | $29,552 | $21,800 |
| $500,000 | $73,880 | $54,500 | $0 | $73,880 | $54,500 |
| $1,000,000 | $147,760 | $109,000 | $0 | $147,760 | $109,000 |
| $2,000,000 | $295,520 | $218,000 | $0 | $295,520 | $218,000 |
| $5,000,000 | $738,800 | $545,000 | $0 | $738,800 | $545,000 |
| $10,000,000 | $1,477,600 | $1,090,000 | $0 | $1,477,600 | $1,090,000 |
| NYC combined rate: NY State 10.9% + NYC city 3.876% applied at top marginal rate. Rates are marginal, not average; lower income brackets pay lower rates. Actual tax liability depends on deductions, filing status, and all income sources. Work with a CPA for precise calculations. NY State-only applies to NY residents outside NYC (Long Island, Westchester, etc.). | |||||
02 — The Property Tax Dimension: Where NY Gets Worse
Income tax is only the first layer of the NY vs. Florida financial comparison. Property taxation in the greater New York area is among the most aggressive in the country.
| Market | Effective Property Tax Rate | Annual Tax on $1M Home | Annual Tax on $2M Home | Florida Equivalent (0.83% effective) |
|---|---|---|---|---|
| Westchester County, NY (Scarsdale, Harrison, Rye) | 2.0–2.8% | $20,000–$28,000 | $40,000–$56,000 | FL: $8,300 / $16,600 |
| Nassau County, NY (Great Neck, Garden City) | 2.0–2.5% | $20,000–$25,000 | $40,000–$50,000 | FL: $8,300 / $16,600 |
| Suffolk County, NY (Hamptons adjacent) | 1.5–2.0% | $15,000–$20,000 | $30,000–$40,000 | FL: $8,300 / $16,600 |
| Manhattan, NY (co-op / condo) | 0.9–1.3% (capped assessments; complex) | $9,000–$13,000 (varies widely) | $18,000–$26,000 | FL: $8,300 / $16,600 — comparable to NYC itself; suburbs the key difference |
| Palm Beach, FL (equivalent market) | ~0.5–0.9% (homesteaded + SOH cap) | $5,000–9,000 | $10,000–18,000 | BASELINE |
03 — The Combined Burden: Income + Property, New York vs. Florida
Annual income: $500,000. Lives in Scarsdale, NY. Owns a $2M home.
Staying in Westchester:
• NY State income tax: $54,500/year
• Property tax on $2M home: ~$48,000/year (Westchester average ~2.4%)
• Combined annual NY burden: $102,500/year
Moving to Palm Beach (FL):
• FL income tax: $0
• Property tax on $2M Palm Beach home: ~$16,600/year at 0.83%
• Combined annual FL burden: $16,600/year
Annual savings: $85,900/year — or $859,000 over 10 years before accounting for investment compounding of the difference.
For a NYC resident (adding 3.876% city tax): the same $500K earner saves $73,880 in income tax, producing a combined annual savings of $105,280 vs. staying in NYC.
New York State is the most aggressive auditor of domicile changes in the United States. The "statutory residency" rule means a taxpayer who maintains a permanent place of abode in New York AND spends more than 183 days in New York during the year is still taxed as a New York resident — regardless of having established domicile elsewhere.
The requirements for a successful NY domicile change:
• Sell or lease out the NY residence (or reduce it to a non-permanent place of abode)
• Spend fewer than 183 days in New York during any calendar year
• Establish genuine Florida ties: FL driver’s license, Declaration of Domicile with FL county clerk, FL voter registration, update will and trust documents to FL, move personal items of sentimental value to FL, change professional registrations and club memberships to FL
• Maintain contemporaneous records of days spent in NY vs. FL vs. other states; NY auditors scrutinize day counts using cell phone records, credit card transactions, and E-ZPass records
A failed NY domicile change is often more expensive than never attempting one, as NY can assess back taxes, penalties, and interest for years in which the domicile change was claimed but not substantiated.
Brown, Ryan. “Own Luxury Homes® New York vs. Florida Tax Index™.” Own Luxury Homes®. https://www.ownluxuryhomes.com/markets/national/research-indices/new-york-vs-florida-tax-indexMedia: ownluxuryhomes.com/connect · 407-900-7030
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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)