Tax Advantages of FloridaSeptember 1, 2016
Florida offers residents lots of perks including many tax advantages. Here residents can utilize tax laws to protect assets and grow wealth. State income taxes are unconstitutional in Florida. This means after paying federal taxes, residents don’t carry any additional income tax obligations. Florida is one of a handful of US states that doesn’t have a state income tax.
Florida has the added benefit of not imposing a state death or estate tax on residents, which dips into many fortunes year after year. For many affluent Northeasterners in Pennsylvania, Connecticut, New Jersey and New York, relief from state income, and state estate and death taxes equals savings in the hundreds of thousands to millions of dollars a year. In addition, Florida’s homestead exemption is one of the strongest in the US. It protects the homes of Florida residents from forced sale to satisfy creditors.
Establishing residency in Florida can be a wise financial decision that allows you to retain more of your personal wealth, to be invested as you choose, as well as passed on to future generations. In order to become a resident of Florida you need to live in the state for six months out of the year, and conduct the majority of your business and affairs in the state. Each year more northeasterners as well as foreigners make use of this opportunity to protect their wealth and investments.