Compare taxes and see how much you save moving from Florida to New York
New York City's combined income tax burden is among the highest anywhere in the United States, and Florida is its most common destination for business owners seeking relief. For NYC-based business owners, the tax picture is layered: New York State income tax (up to 10.9%) plus New York City income tax (up to 3.876%), totalling up to 14.776% at the top bracket. Florida has no personal income tax. At $200,000 in pass-through business income, a NYC sole proprietor pays approximately $28,000–$32,000 in combined state and city income tax; a Florida resident pays zero. The saving is approximately $28,000–$32,000/year — before considering New York's additional corporate franchise tax for C-corporations (6.5–7.25%) and NYC's General Corporation Tax. Florida's corporate income tax rate for C-corporations is 5.5% — lower than New York's. For pass-through businesses (sole proprietors, LLCs, S-corps), Florida's advantage is complete: no personal income tax whatsoever. New York also has an annual LLC filing fee ($25–$4,500) and New York City's publication requirement for new LLCs (requiring newspaper publication that can cost $1,000–$2,000). Florida has no such requirements. The counterargument for New York is access: the world's deepest financial, legal, media, and advertising markets are in New York City. For businesses that genuinely need Manhattan proximity, the tax cost may be justified. For remote-capable businesses, the Florida advantage is substantial and compounding.
No Personal Income Tax, Low Corp Rate
Zero personal income tax; 5.5% corporate income tax on C-corporations; no franchise tax; no LLC gross revenue fees
State + NYC Income Tax + Corp Tax
NY state income tax up to 10.9%; NYC residents add up to 3.876%; NY corporate franchise tax 6.5–7.25%; NYC general corporation tax adds further layer for city businesses
At $200,000 business profit income:
Florida saves approximately $22,000–$32,000/year vs NYC at $200K pass-through business income (combined NY state + NYC tax). Vs New York State only (non-NYC): approximately $17,000/year saving at $200K. Florida also has no $800+ minimum entity fees or LLC publication requirements.
| Income | FL Tax | NY Tax | Savings | 10-Year |
|---|---|---|---|---|
| $75,000 net profit | $0 | ~$7,250 NY state / ~$10,000 NYC total | FL saves ~$7,250–$10,000/yr | $72,500–$100,000 |
| $100,000 net profit | $0 | ~$10,350 NY state / ~$14,100 NYC total | FL saves ~$10,350–$14,100/yr | $103,500–$141,000 |
| $150,000 net profit | $0 | ~$16,200 NY state / ~$21,900 NYC total | FL saves ~$16,200–$21,900/yr | $162,000–$219,000 |
| $200,000 net profit | $0 | ~$22,100 NY state / ~$29,800 NYC total | FL saves ~$22,100–$29,800/yr | $221,000–$298,000 |
| $500,000 net profit | $0 | ~$52,150 NY state / ~$71,500 NYC total | FL saves ~$52,150–$71,500/yr | $521,500–$715,000 |
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Moving your business from New York to Florida requires navigating New York's residency audit process, LLC publishing requirements, and nexus rules. Taxhub connects you with a CPA who specialises in New York exits for business owners. Virtual meetings, fixed pricing.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a Small Business Tax CPA →New York State requires newly formed LLCs to publish a notice of formation in two newspapers in the county where the LLC is located — once per week for six consecutive weeks. In New York City counties (Manhattan, Brooklyn, Queens, Bronx, Staten Island), these publication costs can run $1,000–$2,000+ because the required publications are in expensive city newspapers. Failure to comply within 120 days results in the LLC's authority to do business being suspended. Florida has no such requirement. This is an often-overlooked cost of forming an LLC in New York.
Yes, but you must genuinely establish Florida domicile and sever New York connections. New York audits departing residents — particularly high earners and business owners — through the 183-day rule (spend fewer than 183 days in NY) and the 'domicile' test (Florida must be your primary home and your business must have its primary operation there). If your business has New York customers, employees, or offices, New York can still tax the New York-sourced portion of income. Businesses with no New York nexus after moving owe no New York tax. A CPA is essential for high-income business owners making this move.
Florida's 5.5% corporate income tax applies only to C-corporations with Florida nexus. The first $50,000 of Florida net income is exempt (effectively a small business exemption). For most small business owners operating as sole proprietors, single-member LLCs (taxed as sole proprietors), S-corporations, or partnerships, the Florida corporate income tax does not apply — these entities pass income through to the owner's personal return, and Florida has no personal income tax. The 5.5% corporate rate matters primarily for C-corp structures.
Miami has grown significantly as a financial services hub since 2020, with hedge funds, private equity firms, venture capital, and crypto companies relocating from New York. Brickell (Miami's financial district) has attracted Citadel, Point72, Apollo, and Goldman Sachs offices. The combination of no Florida income tax, proximity to Latin American capital, and lower commercial real estate costs has made Miami a genuine alternative for certain finance sub-sectors. Tampa, Jacksonville, and Orlando attract more service businesses and operations-heavy companies where NYC market access is less critical.
For a sole proprietor or LLC owner earning $250,000 annually: NYC total income tax (state + city) ≈ $35,000–$38,000; Florida income tax = $0. Annual saving ≈ $35,000–$38,000. Over 10 years: $350,000–$380,000. On top of income tax, NYC business owners also save: NYC property taxes on commercial space (often high), NYC sales tax (4.5% NYC + 4% state = 8.875% combined), and operational costs (rent, insurance). The total business cost of operating in NYC vs Florida is substantially higher than income tax alone.