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UK Buyer: Florida vs New York for US Property Investment
UK buyer Florida vs New York: Florida no state income tax vs New York up to 14.776% combined. Florida short-term rental permissive; NYC bans short-term under 30 days without host present. New York has additional state estate tax and mansion tax. Own Luxury Homes® International Buyer Verification Standard™ UK buyer specialists.
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UK Buyer: Florida vs New York for US Property Investment
No State Tax
Florida has no state income tax; New York has up to 10.9% state + 3.876% NYC
Short-Term
Florida permits short-term rental; NYC bans under 30 days without host present
Mansion Tax
NYC mansion tax: 0.25% to 3.9% on purchases above $1M
Estate Tax
Florida has no state estate tax; New York has its own up to 16%
Florida and New York are the top two US markets for British buyers, and they serve completely different buyer profiles. The British investor who wants no state income tax, short-term rental income, and year-round warmth chooses Florida. The one who wants Manhattan's cultural density and financial connections chooses New York and accepts the tax burden.
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Florida vs New York: Side-by-Side
| Factor | Florida | New York | |
|---|---|---|---|
| Climate | Warm year-round; hurricanes | Four seasons; cold winters | |
| State income tax | None | Up to 10.9% state + 3.876% NYC city tax | |
| UK buyer concentration | Highest in US; Florida has largest UK buyer community | Significant; financial services and arts buyers | |
| Flight time from London | 9-11 hours (Heathrow direct to Miami/Orlando) | 7-8 hours (Heathrow direct to JFK/Newark) | |
| Average property price | $400K-$1.5M (luxury) | $1M-$5M+ (Manhattan) | |
| Rental income potential | Strong seasonal; short-term rental common | Strong long-term; short-term heavily regulated | |
| Estate tax | No state estate tax | NYC and NY state estate tax; separate from federal | |
| Homestead exemption | Not available to non-residents | Not applicable |
Florida: The UK Buyer's First Choice
Florida is by far the most popular US destination for British buyers. No state income tax (versus the UK's up to 45% income tax rate) is the primary financial driver. For a British investor with $100,000 in US rental income, Florida means zero state income tax on that income. Popular Florida markets for UK buyers: (1) Orlando: Disney/theme park proximity; strong short-term rental market; vacation home investment. (2) Fort Lauderdale / Pompano Beach: Atlantic Coast; boating; European community. (3) Sarasota: arts culture; Gulf Coast; calmer waters; lower density. (4) Cape Coral: canal-front boating; affordable; strong rental demand.
Short-Term Rental in Florida vs New York
Florida is relatively permissive on short-term rentals (Airbnb, VRBO) compared to New York City, which bans short-term rentals under 30 days unless the host is physically present. A British investor buying specifically for short-term rental income should be in Florida, not New York.
New York: For the Urban UK Buyer
New York appeals to a different British buyer: finance professionals, arts and media industry connections, and those who want the cultural familiarity of a global city rather than a warm-weather vacation destination. Key New York issues for UK buyers: (1) New York City and New York State both impose income taxes (combined up to 14.776% for high earners). (2) New York has its own estate tax (threshold $6.94M in 2024, rate up to 16%). (3) Mansion Tax on purchases above $1M (0.25% to 3.9% depending on price). (4) New York short-term rental regulations are among the most restrictive in the US. See: UK Buyer Florida Real Estate Guide.
Where to Start
Both markets are well-served by Own Luxury Homes® UK buyer specialists. See: UK Buyer Florida Guide, Best Florida Markets for International Buyers, and ITIN for Foreign Buyers Guide.
Ryan Brown, Principal Broker & CEO — Own Luxury Homes®
“The British buyer who asks me Florida or New York usually knows the answer before they finish the sentence. If they mention Disney or sunshine or Airbnb income, it is Florida. If they mention their finance role or their New York contacts, it is Manhattan. My job is to make sure the tax picture for each market is understood before the decision is made.”
Own Luxury Homes® — UK buyer specialists in every major US market. International Buyer Verification Standard™. No dual agency. Contact us now ›
Frequently Asked Questions
Is Florida or New York better for UK buyers from a tax perspective?
Florida is significantly better: no state income tax, no state estate tax, and no short-term rental restrictions. New York adds up to 14.776% combined state and city income tax plus its own estate tax and short-term rental bans.
Can UK buyers use Airbnb for their US property?
In Florida, generally yes, subject to local regulations. In New York City, short-term rentals under 30 days are banned unless the host is physically present. This makes NYC effectively unusable for short-term rental investment by UK absentee owners.
Which US state is most popular with UK buyers?
Florida consistently ranks #1 for UK buyers of US property, driven by no state income tax, direct flights from London, and year-round warmth.
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)