"Temporary" is starting to look a little more permanent for those paying New York's "millionaire tax," which was extended five more years to 2024, according to a report in Forbes. For millionaires who keep on making it, the taxman keeps on taking it—to the tune of $4.5 billion per year, more than 4% of the state's operating budget, per the report.
For advisors with clients based in New York, and considering a move to a different state to save on taxes, they may want to consider moving further than New Jersey (which has a multimillionaire's tax and is considering taxing even those making $1 million), Connecticut (home of a demi-millionaire/millionaire tax) or even Massachusetts (a state debating its own millionaire tax proposal). Meanwhile, Florida is wooing New York homebuyers who aren't afraid of the impact hurricanes and climate change may have on real estate and economic output in the Sunshine State.
While a 2016 study found that most millionaires don't move from state to state to avoid big tax bills, the overhaul to the state and local taxes (SALT) cap from the 2017 tax bill is affecting millions of taxpayers. The same 2016 report noted that if tax-avoidance migration does take place, the most popular destination is Florida.