Wealthy Washington Residents Eye Florida Real Estate Amid Tax Changes
Millionaires in Washington state are increasingly considering Florida as a new place to invest in real estate, largely due to changes in the tax landscape back home. This insight comes from Margit Brandt, a luxury real estate specialist.
“The primary driver is taxes,” Brandt mentioned. Florida boasts a 0% income tax, while Washington state will implement a 9.9% tax starting January 2028. Furthermore, capital gains in Florida remain at 0%, compared to Washington’s 7%. It seems that the tax environment in Washington has become rather burdensome for high earners, prompting them to turn their attention towards Florida,” she noted.
Washington’s capital gains tax is structured so that the first $1 million in gains is taxed at 7%, and any gains beyond that are taxed at a higher rate of 9.9%. Interestingly, real estate transactions are exempt from this tax.
The trend aligns with recent legislation in Washington, where the Democratic-led Legislature and Governor Bob Ferguson approved a tax on adjusted gross incomes surpassing $1 million. Set to start on January 1, 2028, with initial filing dates in April 2029, this marks a significant shift for a state that has historically not imposed an individual income tax.
There’s already legal pushback against this new tax, challenging its constitutionality. Real estate professionals suggest this levy might be impacting the decisions of wealthy individuals considering relocation.
“We’ve witnessed significant transactions involving high-income individuals relocating from Washington,” Brandt explained. “These aren’t just theoretical discussions; these are real-life examples of people establishing new lives in Florida.”
Although detailed data on millionaire migration due to the tax changes isn’t available yet, a recent survey conducted by the Association of Washington Business revealed that 24% of respondents are contemplating moving their businesses out of the state. This figure has risen from 17% in the previous quarter and is significantly higher than what was recorded about 16 months ago.
Moreover, about 55% of business leaders surveyed are considering relocating their personal residences to another state, with a notable 67% in Spokane County, which borders Idaho, a state with lower taxes.
This shift is evident in the movement of notable individuals as well. Jesse Proudman, a tech entrepreneur, announced plans to leave Washington, stating that the area, once a haven for startups, has become unfriendly to business owners. Starbucks also recently declared its intention to invest in Nashville, Tennessee, where it expects to create numerous jobs, citing the state’s lack of an individual income tax as a factor.
Beyond financial considerations, Brandt emphasized that factors like safety, cultural environment, and overall quality of life significantly motivate wealthy individuals to transition to Florida and other states such as Texas and the Carolinas.
“For those investing in multi-million dollar homes, it’s not just about the property; it’s about adopting a whole new lifestyle,” Brandt shared. She pointed out that Florida’s absence of an estate tax and its closeness to the Caribbean are particularly attractive to families with generational wealth. “These individuals seek safety, strong school systems, and a secured financial future. Florida seems to be a straightforward choice, and I anticipate we’ll see even more of this trend in the years to come.”
Additionally, requests for comments were made to various Washington state officials including Senators Patty Murray and Maria Cantwell, along with Governor Bob Ferguson and Seattle Mayor Katie Wilson. Brandt’s observations reflect a growing narrative around wealth, taxation, and migration within the U.S.
