Primarily known for its sandy beaches and bright blue skies, Florida is a place that everyone knows and loves. It is a place where you can enjoy the sunset while sipping on your margarita all year long. But in addition to that, the Sunshine State offers numerous practical reasons to come and start a life, one of which includes its friendly tax policies.
The new tax reform in Florida began shaping in November, 2017, and in December the Florida Chamber of Commerce touted the federal tax overhaul as a come-on to businesses that may relocate to the state. The final bill restricts deductions for local and state taxes to $10,000 and only allows interest on the first $750,000 of mortgage debt, rather than the current $1 million, to be subtracted for new homebuyers. In simple words, this bill is really a jackpot for people in the state of Florida who have real estate investments there. That’s because their tax rate is going to drop by 10%, which is a windfall for a lot of people.
Florida is already one of the seven US states that don’t have state income tax, which means more money goes into the citizens’ pockets. In addition, both the real estate tax and sales tax rate are extremely low, which make gas prices and energy bills pretty affordable.
Besides that, one of the best advantages of living in Florida is the protection that it provides to life insurance and annuities cash value. The state’s law protects your annuity money from lawsuits and creditors. This feature is pretty attractive to those individuals who have money in annuities since they can sleep better knowing their money has an extra level of security.
Besides financial ease and security there are other numerous reasons that make Florida an inviting place, some of which include:
- Cultural diversity – Florida flaunts a vibrant and rich culture that combines traditions and influences from all over America and even beyond that. African American, Hispanic and Native American beliefs, heritage, and customs have left behind their traces in architecture, social practices, and cuisine.
- Abundant Housing Options – A range of new homes are available throughout the state of Florida to suit any preferred budget or lifestyle, ranging from front porch condos to lakeside leisure and conservation vistas.
- Job Security – On top of no state income tax, and low sales and property tax, Florida also offers plenty of job opportunities and job security thanks to its booming economy. In fact, it is considered one of the best US states to do business in. Currently, Florida’s GDP is the 4th largest in all of America, coupled with a pretty low unemployment rate, and an abundance of job opportunities offered by the highly advanced service sector.
All in all, though Florida was quite a catch, to begin with, the new tax reform has given us one more reason to love this Sunshine State.
Sources:
https://www.wsj.com/livecoverage/tax-bill-2017/card/1512168247
https://www.bisnow.com/south-florida/news/economy/tax-reform-florida-capital-flight-82841
https://www.wsj.com/livecoverage/tax-bill-2017/card/1512232645
