Moving to Florida: the actual math.
Every year, IRS migration data shows Florida among the largest net gainers of income moving between states — and the households moving the most income come from the highest-tax states. Here’s what actually changes when you make the move, and the two costs that honestly push the other way.
By Krista Fracke — Broker Associate, Christie's International Real Estate First Coast · 20+ years in Northeast Florida · 500+ closings · client reviews
What goes away
Florida levies no state income tax — not as policy that could shift next session, but by constitutional prohibition. There is also no state estate or inheritance tax. For a household arriving from a state that taxes income at double-digit top rates, the difference on salary, investment income, and retirement distributions is the single largest line in the relocation math — and unlike most of the math, it recurs every year.
For anyone expecting a liquidity event — a company sale, vested equity, an IPO window — timing matters enormously: which state you are a resident of when income is recognized is a question worth real planning. That is CPA territory, not mine — I’m Krista Fracke, a broker in this market for twenty-plus years, and my job is the part after — but the buyers I work with at the estate tier almost all made this move in that order: residency first, event second.
What residency takes
Florida makes it easy to arrive; the state you are leaving decides how hard the departure is examined. The pattern that holds up: a Florida homestead you actually live in, a declaration of domicile filed with the county, Florida driver license and voter registration, and time — genuinely living here. High-tax states audit high earners who leave, and the ties you keep (an office, a house, a school enrollment) are what they look at. Plan the departure as carefully as the arrival.
What pushes the other way
Two honest counterweights. Property tax: effective rates for a new buyer at full assessment run roughly 1.6% in St. Johns County and about 2% in Duval — and when you buy, the assessed value resets to market — usually close to your purchase price — so the seller’s old bill is not your bill. Insurance: on the coast it is a real line item that varies sharply house by house — flood zone, elevation, roof, construction year. Neither is a reason to stay put; both are reasons to run the numbers on a specific house instead of a spreadsheet average. Every listing on this site carries a true-monthly-cost estimate built at your price, and the oceanfront cost guide covers the insurance stack in full.
The part nobody tells you
The famous 3% assessment cap — Save Our Homes — only starts protecting you after you homestead here, and portability of an existing cap is Florida-to-Florida only. An arriving buyer starts at full market assessment, which is exactly why the advertised “taxes” on a listing (the seller’s capped bill) can be far below what you’ll actually pay. This site’s monthly-cost math models the reset for you; a listing’s tax figure is the seller’s bill, not yours.
This is the work I do every week. If a Florida move is on your board, tell me the timeline — I’ll put real homes and real monthly numbers against it, model the tax reset at your price, and keep the whole conversation confidential.
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Broker Associate · Christie's International Real Estate First Coast · 20+ years · 500+ closings
Common questions
Does Florida really have no state income tax?
Yes — and it is not a policy that shifts with elections: a personal income tax is prohibited by the Florida constitution, so changing it would take a constitutional amendment approved by voters. Florida also levies no state estate or inheritance tax. Wages, retirement income, and investment income all go untaxed at the state level.
What does Florida residency actually require?
There is no single form that does it. Residency is established by the pattern: where you spend your time, a Florida homestead, a declaration of domicile filed with your county, a Florida driver license and voter registration, and — the part high earners underestimate — genuinely cutting the ties your former state will audit. High-tax states examine large earners who leave. This is exactly the conversation to have with your CPA before a move or a liquidity event, not after.
What is the homestead exemption and the Save Our Homes cap?
Once a Florida home is your permanent residence, you can claim the homestead exemption (the filing deadline is March 1 of the year you claim it), which reduces the taxable value — and from then on the Save Our Homes rule caps the growth of your assessed value at 3% a year no matter what the market does. Over a decade of appreciation that cap becomes one of the biggest tax features in the state.
What changes for someone moving from California specifically?
The biggest single line: California’s top marginal income-tax rate is 13.3% — and it taxes capital gains as ordinary income — while Florida’s is zero. On a large gain the sequencing is everything: residency established BEFORE the income event is what moves the needle, and California’s Franchise Tax Board is known for auditing departing high earners, so the move has to be documented properly. The counterweights are real too — coastal insurance, and property taxes that reset at purchase. Your CPA runs that math; my job is the Florida side of the move.
So what does moving here actually cost?
Property tax and insurance are the honest counterweights. Effective property-tax rates for a new buyer at full assessment run roughly 1.6% in St. Johns and about 2% in Duval — and a purchase resets the assessed value to market — usually close to what you paid — so the seller’s old tax bill tells you little. Coastal insurance is a real line item that varies house by house. Every listing on this site carries a true-monthly-cost estimate that builds all of this in at YOUR purchase price.
Educational overview only — not tax, legal, or financial advice, and every situation differs. Coordinate residency and timing decisions with your CPA and attorney; I’m the right call for the real-estate half.
St. Johns vs Duval property taxes, with real rates →
The county line as a tax decision: roll rates, live rates, the CDD asterisk.
Buying after a liquidity event →
Proof of funds, trusts and LLCs, and how the quiet market works.
The $5M+ estate tier →
Region-wide bands, live from the MLS.
Ponte Vedra Beach homes →
Where most arriving estate buyers land first.
What oceanfront costs to own →
Insurance, FEMA zones, dunes — with live market data.
Planning the move?
Tell me the timeline and what you’re looking for — I’ll put real homes and real monthly numbers against the plan, and keep the search quiet if that matters to you.