Short answer: moving to Miami wins the tax argument on one line and loses it on two others. On the line everyone quotes — Florida vs. your state: the tax case for moving starts with state income tax — Florida charges US$0: on US$150,000 of taxable income a single filer pays about US$10,389 in California, US$8,282 in New York State (US$13,971 with New York City tax), US$7,750 in Connecticut, US$7,431 in New Jersey and US$7,425 in Illinois. At US$300,000 those bills reach US$24,339 in California and US$29,438 for a New York City resident. But Florida funds itself another way: a 7% combined sales tax in Miami-Dade and the highest homeowners insurance in the country, averaging US$8,471 a year. The case is real — it is just not automatic, and this page shows you how to run your own number before you move.
Updated: October 13, 2026.
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Moving to Miami and the $0 line: what your state charges today
Florida is one of only eight states with no individual income tax at all — not a low rate, a zero, protected by the Florida Constitution. That means no state tax on wages, on pensions, on Social Security, on 401(k) or IRA withdrawals, or on investment income. There is also no Florida estate tax and no inheritance tax. The Tax Foundation’s 2026 table puts the top marginal rates of the states most Miami newcomers leave at 13.3% in California, 10.9% in New York, 10.75% in New Jersey, 6.99% in Connecticut and a flat 4.95% in Illinois. Top rates mislead, though — what matters is the bill on your actual income:
| State (single filer, 2026) | Tax on US$150,000 taxable income | Tax on US$300,000 taxable income | In Florida |
|---|---|---|---|
| California | US$10,389 | US$24,339 | US$0 |
| New York State + New York City | US$13,971 | US$29,438 | US$0 |
| New York State only | US$8,282 | US$17,935 | US$0 |
| Connecticut | US$7,750 | US$17,450 | US$0 |
| New Jersey | US$7,431 | US$16,986 | US$0 |
| Illinois (flat 4.95%) | US$7,425 | US$14,850 | US$0 |
These are planning estimates computed from the official 2026 state schedules on taxable income, before credits — your real bill moves with deductions and filing status. Read the pattern, not just the totals: the saving grows faster than your income in the graduated states, which is why the tax case is overwhelming at US$300,000 and merely nice at US$90,000. If your income is mostly a salary under US$100,000, keep reading — the offsets below can eat a US$4,000–5,000 saving whole.
Cost of living in Miami: the two lines Florida charges instead
Sales tax. Florida’s state rate is 6%, and Miami-Dade adds 1%, for a 7% combined rate on most purchases. Most groceries and prescription drugs are exempt, so this tax hits furniture, electronics, cars and eating out — exactly the spending of your first 90 days. Furnishing an apartment for US$15,000 costs about US$1,050 in Miami-Dade sales tax; budget it into the move, not as a surprise. Note that high-tax states charge sales tax too — New York City’s combined rate is higher than Miami’s — so this is a partial offset, not a Florida invention.
Insurance. This is Florida’s real counterweight. Insurance.com’s 2026 state averages put Florida homeowners insurance at US$8,471 a year — the highest in the US, against a US$2,872 national average. Owners pay it directly. Renters pay a share of it anyway: it is baked into condo association fees and into the rent your landlord needs to charge, which is one reason the cost of living in Miami surprises people who only modeled the income-tax saving. Before you sign, ask how the building’s insurance is trending — and read exactly what your deposit covers in our guide to security deposits in Miami and how they really work.
Property tax, if you buy. Florida does tax property, but two mechanisms protect a primary home: the homestead exemption removes up to about US$50,000 from the assessed value, and the Save Our Homes cap limits assessed-value increases to 3% a year or the CPI change, whichever is lower — so your tax base cannot chase a hot market the way a non-homestead property’s can. Neither applies until the home is your permanent residence and you file; newcomers who delay the filing donate the difference.
The SETTLE verdict: when the tax case actually holds
Run three questions. 1) Is your income portable and taxable? Wages, business income and retirement distributions are what Florida zeroes. If your income stays sourced to your old state — some remote-work and equity situations do — the saving shrinks or vanishes. 2) Will you rent or buy? Renters dodge the insurance line almost entirely and keep nearly the full income-tax saving; owners in coastal buildings keep much less of it. 3) Will you actually cut ties? The saving only starts when your old state accepts that you left — domicile is proven with evidence, not announced. Snowbirds learn this the hard way: spending winter here while keeping your life up north keeps the old state’s claim alive, as our Canadian snowbird guide to a winter in Miami shows in the seasonal version. For the wider budget picture — rents, deposits and neighborhoods beyond taxes — start from our Miami relocation guides hub and build the full first-year number.
What most people don’t know
1. The federal SALT cap shrinks your old bill, not just your new one. Since 2025 the federal deduction for state and local taxes is capped at US$40,000 (2025–2029), so high earners in New York or California can no longer deduct most of that state bill federally. The state-level saving from moving is unchanged — but model your federal return both ways with a tax professional before quoting a net number.
2. Domicile is a file, not a feeling. Florida license, voter registration, vehicle registration, a recorded declaration of domicile and your federal return address are the paper trail that ends the old state’s claim. States like New York audit departures, and the move year is the danger zone: keep the documents dated and consistent from day one.
3. Part-year is real. In your move year you will usually file a part-year return in the old state and owe it tax on income earned while you were still a resident. The Florida saving starts the day your domicile genuinely moves — not the day you sign a Miami lease. Sequence the move before a bonus, a business sale or an equity event whenever you can.
4. $0 income tax also means $0 tax on retirement income. Pensions, Social Security and IRA withdrawals that several origin states partially tax are simply not taxed here — for retirees this line alone can beat the working-years saving, with no homestead filing and no age test attached.
Frequently asked questions
Does Florida really have no state income tax?
Yes. Florida levies no individual income tax — on wages, retirement income or investment income — and the ban is constitutional, so it cannot be changed by a simple budget vote. Individuals file no Florida income tax return.
How much do I actually save moving from California or New York to Florida?
On US$150,000 of taxable income, roughly US$10,389 a year from California and US$13,971 from New York City (US$8,282 from New York State outside the city). On US$300,000, roughly US$24,339 and US$29,438. Then subtract Florida’s offsets: 7% sales tax in Miami-Dade and, for owners, the country’s highest homeowners insurance.
What taxes does Florida charge instead?
A 6% state sales tax (7% combined in Miami-Dade; most groceries and prescription drugs exempt), property tax on real estate — softened for primary homes by the homestead exemption and the Save Our Homes 3% assessment cap — and insurance costs that are the highest in the US. There is no estate or inheritance tax.
Do I still owe my old state taxes after I move to Miami?
For the move year, usually yes on income earned while you were a resident there (a part-year return). After that, only if the state still treats you as domiciled or a statutory resident — which is decided by your documents and days, not your intentions. This article is general information, not tax or legal advice; confirm your situation with a tax professional before a large income event.
Yara Coker — SETTLE, relocation services in Miami.
Want help with your move to Miami?
Tell us your state, your income type and whether you plan to rent or buy — we will run your Florida-vs-your-state comparison with the offsets included, and sequence the domicile paperwork so the saving starts when it should.
Sources
Tax Foundation, “2026 State Income Tax Rates and Brackets” (rates and brackets as of January 1, 2026): Florida among the eight states with no individual income tax; top marginal rates California 13.3%, New York 10.9%, New Jersey 10.75%, Connecticut 6.99%, Illinois flat 4.95%. Worked examples computed from those 2026 schedules (single filer, taxable income, before credits); New York City resident rates from the New York Department of Taxation and Finance schedules used in SETTLE’s New York tax-savings guide. Florida Constitution, Article VII, Section 5 (no personal income tax). Florida Department of Revenue: 6% state sales tax; homestead exemption and Save Our Homes cap (Fla. Stat. sections 196.031 and 193.155); no Florida estate tax imposed since December 31, 2004. Miami-Dade combined sales tax 7% (Avalara / Florida DOR county rates, 2026). Homeowners insurance state averages 2026: Insurance.com (Florida US$8,471, highest in the US; national average US$2,872). Federal SALT deduction cap of US$40,000 for 2025–2029 under the One Big Beautiful Bill Act (Bipartisan Policy Center explainer, 2025).
Versión en español: Vivir en Miami: el $0 de impuesto estatal es real — esto es lo que Florida sí te cobra en 2026
