The law, which will be applied to 2018 tax returns, limits the deductions taxpayers can pay on property taxes and state and local taxes up to $10,000.
New York state’s income tax rate is 8.82 percent, while Manhattan’s is 3.876 percent. Nearly half of New York City’s taxpayers have taken an average deduction of $60,000 a year, as reported by the New York Times.
Additionally, he found that a New York resident with $10 million in ordinary income and a $10 million home would save $1,173,278 in total taxes by relocating to Florida on Jan. 1, 2018, when the law took effect.
As a result, there’s an increase of $431,682 or 58 percent from 2017, according to the Tax Institute at H&R Block.
When describing the typical New York buyer of Miami properties, she emphasized, “This type of buyer is purchasing anywhere from $10 million up to $50 million.”
Conservative economists Arthur Laffer and Stephen Moore of Laffer Associates and the Heritage Foundation predicted to the Wall Street Journal that New York and California alone would lose 800,000 to tax-related migration over three years.
Reports indicate that especially in recent months, there have been a number of developers constructing luxury residential buildings that cater to a Manhattan buyer.