January 8, 2020
Authored by: Stacie J. Rottenstreich and Karin Barkhorn
As we deal with the first snowfall of the season in New York, many New Yorkers may think about picking up and moving to Florida to avoid the cold winter. Many New Yorkers also think about making Florida their tax home, to take advantage of the favorable estate and income tax laws there. Florida has no personal income tax and no state estate tax, whereas New York currently has an income tax rate as high as 8.82% and estate taxes on estates over $5,850,000.00 at a rate as high as 16%. President Trump has recently publicized his decision to make such a move. But the switch to make Florida one’s legal domicile for tax purposes is not as easy as one might think.
For income tax purposes, if you start off as a New Yorker and file New York state resident income tax