Miami Tax Advantages: Why Finance Pros Are Flocking to Florida

Miami has transformed from a vacation destination into a serious financial hub. Citadel, Goldman Sachs, and dozens of hedge funds have opened offices in South Florida, drawn by the same thing that attracts individual professionals: zero state income tax and a business-friendly environment.

The Florida Tax Advantage

Florida has no state income tax, no estate tax, and no inheritance tax. For a hedge fund manager earning $500,000, moving from New York to Miami saves over $50,000 per year in state and city taxes alone. Even for a $100,000 salary, the savings exceed $8,000 annually.

Homestead Exemption Benefits

Florida's Homestead Exemption reduces your property's assessed value by up to $50,000 and caps annual assessment increases at 3%. This is a powerful wealth-building tool that protects homeowners from rapidly rising property taxes.

Establishing Florida Residency

To claim Florida tax benefits, you must establish genuine residency. This means obtaining a Florida driver's license, registering to vote, filing a Declaration of Domicile, and spending more than 183 days per year in the state. Your former state may audit your residency claim.

Cost of Living Considerations

While you save on income tax, Miami's cost of living has risen sharply. Housing costs have increased over 40% since 2020, and insurance rates — particularly property and auto — are among the highest in the nation. Factor these into your relocation math.