Florida gets billions: why do Americans transfer money to this state

Recently, changes in the US tax code have prompted more people to move - to move their money to states with lower taxes, such as Florida. Writes about this Fox Business.

Фото: Depositphotos

However, as it turns out, Florida relied on such trends even before the introduction of new tax legislation.

According to a new study from online lending marketplace LendingTree, which analyzed 2016 IRS data, Florida is the biggest beneficiary of all 50 states—due to relocation.

In Florida, the net inflow of adjusted gross income (AGI) was about $17,7 billion—the majority (72 percent) coming from those 55 and older. It is consistently one of the most popular states for retirees due to affordability and low taxes.

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Florida's AGI is $17,7 billion, and the remaining 19 states that have positive AGI total $19,4 billion.

South Carolina and another state with no income tax, Texas, tied with Florida at about $2,25 billion.

Florida is unique in that it also attracts a significant share of high-net-worth individuals—more than 85% of its net income influx came from people earning six figures.

On the other hand, New York lost the largest amount of adjusted gross income from relocations, which amounted to about $ 8,8 billion.

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Another high-tax state, Connecticut, had the biggest loss of revenue relative to its overall economy, at $2,6 billion. Connecticut, Pennsylvania, New Jersey, Illinois and New York lost about half their income from people earning more than 200 000 dollars, indicating that wealthy people have moved out of these states.

Although the study analyzed data for the 2016 year, this trend probably only intensified due to recent changes in the US tax code. The $ 10 000 limit on state and local tax deductions led to relocations from states such as New York, Connecticut and California, where the tax burden was already heavy, to low tax states such as Florida, Texas and Nevada.

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Data from the U.S. Census Bureau showed that while Florida gained more movers than any other state in 2018, the outmigration from New York to Florida was the highest, at 63. New York had the third-largest outmigration of any state, with 772 people leaving over the past year.

Individuals earning 650 000 dollars can save more than 69 700 dollars a year by moving from New York to Florida.

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