California millionaires are heading across the country to Florida to escape the new increase in taxes. Those who make over $1 million per year will be faced with a 51.9 percent federal-state combined income tax.
At 13.3 percent, California’s state income tax is higher than any other state and the steepest it has been since World War II.
As a result, many of California’s millionaires are following the trend of celebrities like Tiger Woods and Phil Mickelson and moving to Florida, where there is no personal income tax. For someone who makes $1 million per year, that’s a savings of $133,000 annually!
“What we like to point out to people is that there are states with absolutely no personal income tax,” David Kline, a vice president of the California Taxpayers Association told the New York Times. “So if you moved from California to Florida, and you are in a high-income bracket, you are automatically giving yourself a 13.3 percent raise.”
If you are interested in moving to Florida, Boyer Law Firm can help. Our expertise in business law can help you start a company or foreign qualify your existing company in Florida. We can also help you with residential and commercial purchases and leases. For more information, contact us today.
Source: New York Times