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June 9, 2023 | 3:03 p.m
According to a recent study, high-income New York City residents can save nearly $200,000 by skipping the Big Apple’s exorbitant rents and taxes in favor of Miami’s sun-kissed beaches.
Financial information provider SmartAsset analyzed how much people with a six-figure sum in cities like New York, San Francisco and Chicago would save if they packed their bags for Florida’s largest city.
According to SmartAsset, a Manhattan resident on a salary of $650,000 would save $195,000 because Florida has no state income tax and the cost of living is lower.
Workers on New York salaries of $650,000 are subject to a 45% effective tax rate in New York—taking into account federal, state, and local taxes—which drops to 35% for Miami residents.
According to the study, the same Manhattan resident who makes $150,000 could save nearly $50,000 by moving to Miami.
A New Yorker’s cost of living would also plummet if they moved out of Manhattan — where average overhead costs are 137.6% higher than the national average.
New Yorkers earning six figures could save as much as $200,000 in taxes by moving from Manhattan — where overheads are 137% above the US average — to Miami, where overheads are just 22.8% above average .Getty Images/iStockphoto
In Miami, costs are just 22.8% higher than the national average, according to the study.
Manhattan recently posted a record median rent for the third straight month.
According to the latest rental market report from surveyor Miller Samuel and brokerage giant Douglas Elliman, the borough’s median rent was $4,395 per month in May — a 3.6% month-on-month increase from the median rent of $4,241 per month in May April.
That April reading represented a 1.6% month-on-month increase from the March average of $4,175, which surpassed last July’s record of $4,150.
For comparison, the median rent in Miami was $2,900 in May — a slight increase from April’s monthly average of $2,840, according to figures from Zumper.
Since the pandemic, when many Manhattan residents flocked south to advocate lower taxes, warmer weather and looser COVID restrictions, Miami residents have blamed New Yorkers for soaring rents.
According to SmartAsset, high-tax residents of San Francisco and Chicago would also boost their savings by moving to Miami.
SmartAsset’s study showed how much money residents could save on taxes by moving from New York to Miami, which could be due to Florida’s lack of state income taxes. The average rent for an apartment in Manhattan was $4,395 in May, much more than Miami’s average rent of $2,900 for the same month.Getty Images/iStockphoto
In San Francisco — where the cost of living is 83% above the US average and the effective tax rate is 46% — people making $650,000 a year will make $153,000 more in Miami, according to the study.
Wealthy Chicagoans may have fewer incentives to relocate, barring the weather. A Windy City resident making $650,000 would save just $10,000 because Chicago’s cost of living is 17.1% above the norm, even though the effective tax rate is 40%, the study said.
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