It appears there’s no easy way to escape New York, particularly when it comes to its tax office.
The state is reportedly quite aggressive in tracking down wealthy individuals who attempt to dodge high taxes by relocating to states like Florida. New York City Mayor Zoran Mamdani’s plan to increase taxes on high earners may intensify these efforts, experts have warned.
Some New Yorkers thinking about moving believe they just need to follow the “six months and one day” guideline. This means they can still be considered residents if they spend at least 184 days in New York, excluding brief stays like airport layovers and hospital visits.
However, experts contend that establishing residency elsewhere in New York requires more than that. It involves changing driver’s licenses, voter registrations, bank accounts, and mail subscriptions to the new address, whether in Florida or any other state. Plus, each state has its own specific criteria.
“New York is relentless when it comes to income taxes,” said Christine Concepcion, a tax attorney. “They don’t want people to leave and will go to great lengths to maintain their tax base.” She emphasized, “This isn’t something that happens overnight.”
In the meantime, Mamdani is pushing for a 2% increase in the city’s income tax for millionaires, which would raise the overall tax rate to 5.9%. This is a central part of his socialist agenda. Experts suggest some of the added revenue might be allocated to audits and tax enforcement.
“In socialist countries like Belarus, raised taxes often coincide with increased enforcement,” noted Tatyana Tsowar, CEO of Linza Advisors.
New York’s auditors are known for being stringent. For instance, John Hoff and his wife, Kathleen Okohoff, were surprised to find they owed $60,000 in taxes to New York after purchasing a $1 million condo in Naples. Despite registering their vehicles, updating their voting statuses, and even relocating personal items, they continued to cash paychecks in New York and retain memberships in local clubs which was sufficient evidence for taxing authorities.
The couple contested the tax bill but ultimately lost their appeal. Their lawyers did not respond to inquiries.
New York is also targeting people working remotely for New York companies, applying what’s termed the “employer convenience” rule, especially as remote work has surged during the pandemic.
“We had a client who lived in Missouri, working for a New York employer, wanting to file a discrimination suit. New York claimed it wasn’t liable but insisted the client still owed taxes there,” recounted Andrew Wilford from the National Taxpayers Union Foundation. Interestingly, the individual managed to evade New York taxes because he didn’t set foot in the office that year. Wilford pointed out that even attending an office holiday party could have triggered tax liabilities.
If I were to relocate to Florida, I’d also make sure to get a reciprocal CPA license there, Zoir noted, “because it’s just odd to claim residency without that.”
Proving you live in your new state, like Florida, can involve actions like buying a cemetery plot, opening a safe deposit box, or even moving cherished items like art and wedding photos.
For those with school-aged children, auditors often check which school the child is enrolled in as part of their assessment.
Although New York state auditors can be quite relentless, it’s crucial to note that many individuals moving to Florida aren’t genuinely relocating; they’re more interested in avoiding tax burdens.
Fox expressed his frustration, saying, “If they’re from New York, they should pay taxes just like everyone else. I don’t want to fund services for people who spend half the year somewhere else.”
With a state tax rate reaching 10.9%, combined with Mamdani’s proposed increase, New York’s wealthiest could face state and local taxes approaching 16.8%, not counting federal taxes, experts warn.
This potential tax hike could accelerate the migration of New Yorkers out of the state. According to research, residents leave at a pace of every 2 minutes and 23 seconds, which poses a significant challenge for New York’s budget.
It’s projected that tax revenue could plummet by $3.8 billion by 2025 due to this exodus, according to estimates from the National Taxpayers Union Foundation.
Wilford commented that Mayor Mamdani seems unconcerned about the ongoing trend of residents leaving in response to rising taxes, a sentiment echoed by the lack of response from the mayor’s office to inquiries.
Even though high taxes persist, New York’s wealthy demographic continues to grow. However, the state’s share of the nation’s billionaire income has fallen from 12.7% in 2010 to 8.7% in 2022.
Wilford pointed out that high-income earners are especially sensitive to tax increases. They notice a 1% tax rise more acutely due to their larger tax bills—it’s just more significant for them compared to average earners.
Given that wealthier individuals have more assets, they find it easier to relocate, selling one home and buying another across state lines.
From 2021 to 2024, nearly 900,000 people left New York, with over 125,000 heading to Florida between 2018 and 2022. This migration took about $14 billion in income out of the state, according to the Citizens Budget Committee.
Many of those relocating ended up in counties like Miami-Dade and Palm Beach, which reduced New York City’s adjusted gross income significantly.
Luxury real estate agent Melanie Holland remarked, “There’s so much wealth out there; it’s surprising. People who previously lived on Palm Beach Island can no longer afford it.”
Experts advise high-income New Yorkers to seek legal assistance when planning their move to minimize the risk of incurring unexpected New York tax bills. Holland added, “Florida has always attracted wealthy New Yorkers, and auditors have their eyes on that. The issue seems to be that many moving aren’t following the proper procedures.”
