Moving to Miami from New York City, Chicago or San Francisco could save a high-earning individual up to $200,000 in taxes and general living expenses. Buena Vista images
- Moving to Miami from New York City, Chicago or San Francisco could save high earners thousands.
- Different tax policies and different living costs can affect potential savings.
- Those making $650,000 or more could save up to $200,000 by moving to Miami from NYC, according to a new study.
Those earning more than $150,000 a year could save anywhere from $2,000 to almost $200,000 when moving to Miami from major metropolitan areas like New York City, Chicago or San Francisco, a new study finds.
An analysis by financial website SmartAsset based on tax rates and the average cost of living found that the biggest tax savings often come from moving a dense, expensive area like New York City to a city or state with more favorable tax rates.
At its most extreme, New Yorkers earning $650,000 or more could save nearly $200,000 a year in taxes and living expenses by living in Miami instead.
A report by real estate firm Redfin earlier this year found that Miami tops the list of metro areas people from outside the region search for real estate deals, and that Florida had several cities in the top 10, Insider previously reported.
Florida’s tax policy has also put it to the top of census data for immigrant populations in recent years, but some, including tech billionaire Peter Thiel, said real estate in the state has become too expensive due to the growing population.
Savings move from New York City to Miami
source: SmartAsset
Traveling from New York to Miami offers the greatest benefits due to vastly different tax policies and a significant reduction in the cost of living, as the cost of living in New York City is 137% higher than the US average, while Miami is only 23% higher than average , found SmartAsset.
Chicago has a better cost of living than Miami at just 17% above average, and San Francisco sits in the middle at 83% above the average American household spend of about $5,500 per month.
Savings are shifting from San Francisco to Miami
source: SmartAsset
According to the study, New York City and San Francisco have significant differences due to higher taxes and the cost of living. However, Chicago has slightly higher taxes, totaling about 32% to 40% of income for select high earners, compared to about 27% to 35% for Miami residents.
This relatively small tax differential is offset by the city’s slightly lower cost of living. Overall, a Chicagoan moving to Miami saves just 1% or 2% of their annual salary, while someone moving to Miami from San Francisco would save about a quarter of their income.
Savings shift from Chicago to Miami
source: SmartAsset
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