Americans who are making six-figure incomes and looking to make their dollars stretch even further are flocking to Florida.
The Sunshine State has gained the largest number of high-income workers who make at least $200,000, according to SmartAsset's most recent analysis. And considering that Floridians typically enjoy a lower cost of living than those living in more expensive states, high-earners could save hundreds of thousands of dollars by moving there, even in a pricey city like Miami.
How much highly paid New Yorkers could save in Miami
Someone who lives in Manhattan and earns $650,000 could save nearly $200,000 in living costs and tax-related expenses by moving to Miami and maintaining the same salary, according to a June SmartAsset study.
New York is one of the world's most expensive cities. Costs in Manhattan are about 137% higher than the United States' average, per SmartAsset's findings, which is why jobs in NYC typically pay above the U.S. average salary.
Living expenses in Miami are closer to 23% higher than the country's average and the typical worker earns slightly less than the national average income, according to the Bureau of Labor Statistics' latest available data. On average, workers in the Miami-Fort Lauderdale-West Palm Beach area make around $28.36 per hour which falls just below the nationwide average of $29.76, per the agency's most recent report.
Florida's lack of state income tax also means high-earners are typically taxed less there compared to other metro areas around the country. Someone making six figures and living in Miami is typically taxed between 27% to 35%, while someone at the same income level living in Manhattan is taxed at an effective rate between 36% to 45%, according to SmartAsset.
How much highly paid San Franciscans could save in Miami
While San Franciscans may not to be able to save as much as New Yorkers, they could still benefit financially from a move to the Sunshine State. High earners living in San Francisco could save around 24% of their salaries by moving to Miami, SmartAsset's study reveals.
They might find the tax conditions in Miami to be more favorable. In San Francisco, someone earning between $150,000 and $650,000 is usually taxed between 36% and 46%. That's significantly more than the amount Miami taxes that income level.
How much highly paid Chicagoans could save in Miami
High earners moving from Chicago to Miami would gain the smallest savings but might be able to lower their tax bill, according to SmartAsset. Although living costs in Chicago are lower than in Miami, Chicagoans making between $150,000 and $650,000 are taxed at a higher rate between 32% and 40%, per SmartAsset.
Here's how much money someone making between $150,000 and $650,000 can save by moving from San Francisco or Chicago to Miami, according to SmartAsset.
If you're considering a move, be sure to research not just the cost of living but factors that may impact your potential quality of life such as the local culture and access to entertainment, food, and medical services.
And while the promise of a lower tax bill may seem enticing, it's important to remember that taxes help fund local infrastructure, public transportation and other essential services. Make sure you consider the trade offs.
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