How much Florida residents pay in state and local taxes
A cap on state and local tax (SALT) deductions on federal returns has sparked an exodus from high-tax states like New York and New Jersey to destinations like Florida, which has no state income tax.
So just how much do Florida residents pay in state and local taxes?
A new report from independent, nonprofit research institute Florida TaxWatch showed the state collects $5,733 in state and local taxes per capita, lower than the U.S. average of $7,188.
For comparison, the average SALT deduction claimed in California is $22,000, according to Kevin de Leon, a Democratic member of the California Senate.
Overall, Florida’s collections ranking rose to 44th in the nation from 49th between fiscal 2017 and 2018.
In terms of the tax impact on residents, state revenues are equal to 5.6 percent of personal income (less than the U.S. median of 7.8 percent), while local revenues take out 6.7 percent. That means for every $1,000 a resident earns in income, $56 is owed in state taxes and $67 in local taxes.
While the Sunshine State’s government collects the lowest revenue per capita out of all 50 states in the nation, its local tax burdens are higher – comprising 54.9 percent of total state and local revenue. That’s the highest percentage in the nation.
In terms of property taxes, Florida ranks 24th in per capita collections.
In addition to no state-wide income tax, Florida has no estate tax.
As previously reported by FOX Business, residents stand to save big when making the move from New York to Florida.
Individuals earning $650,000 can save more than $69,700 in taxes per year by moving from New York to the Sunshine State.
Perhaps that helps explain why data from the U.S. Census Bureau showed that while Florida received more movers than any other state last year, New York's outflows to the Sunshine State were the highest – 63,772 people. New York had the third-largest outflows of any state, with 452,580 people moving out within the past year.
New York’s Democratic Gov. Andrew Cuomo has said he expects the cap on state and local tax deductions to have a negative impact on the state’s population – and tax receipts. He blamed a $2.3 billion budget deficit on the new tax law, calling the state’s financial situation “as serious as a heart attack” as wealthy residents leave.
Meanwhile, the exodus from high-tax states may continue to heat up. Many experts told FOX Business they saw a spike in inquiries about establishing a new domicile during tax season, when taxpayers began to see the financial repercussions before their eyes