Last Updated: April 2026
Miami has undergone a remarkable transformation in the past five years, emerging as America's new financial capital — and the no-income-tax advantage is central to the story. Hundreds of hedge funds, private equity firms, family offices, crypto companies, and technology businesses have relocated or opened offices in Miami since 2020, drawn by Florida's constitutional prohibition on state income tax, the warm climate, and a vibrant international business culture. For a Wall Street professional earning $1 million, moving from New York City to Miami saves approximately $110,000 per year in state and city income taxes.
Miami's specific tax profile within Florida is defined by Miami-Dade County's 7% combined sales tax, property taxes that average 1-1.5% of assessed value (lower than Texas or Illinois but higher than Florida's statewide average), and the Florida homestead exemption system with its powerful Save Our Homes assessment cap. For international buyers, wealthy Latin American families, and high earners relocating from the Northeast and California, Miami's tax environment is a compelling draw on top of its lifestyle advantages.
The financial calculus behind Miami's rise is straightforward. Florida has no state income tax — constitutionally protected under Article VII, Section 5, requiring a 60% voter supermajority to change. For high earners, the savings are transformative:
| Income Level | NYC Annual Tax Saving | CA Annual Tax Saving |
|---|---|---|
| $250,000 | ~$29,000 | ~$23,000 |
| $500,000 | ~$55,000 | ~$47,000 |
| $1,000,000 | ~$110,000 | ~$94,000 |
| $5,000,000 | ~$545,000 | ~$465,000 |
At $1 million in income, the $110,000 annual NYC-to-Miami saving equals nearly $3 million over 25 years at 7% compound growth. This is not a marginal consideration — it is life-changing wealth. High-profile relocations include Ken Griffin (Citadel, from Chicago), David Tepper (Appaloosa, from New Jersey), and hundreds of less-publicized fund managers and executives. Miami's Brickell financial district now hosts over 1,000 financial services firms.
Miami-Dade's combined sales tax rate is 7% — Florida's 6% base plus Miami-Dade's 1% county surtax (the People's Transportation Plan, funding transit infrastructure). This is lower than Hillsborough County (Tampa, 8.5%) and comparable to Broward (Fort Lauderdale, 7%). Key sales tax points for Miami residents:
Exempt from Florida sales tax: Groceries (food for home preparation), prescription drugs, most medical supplies, residential rent (though commercial rent IS taxable at 5.5% Florida rate), and children's clothing under certain thresholds. Subject to sales tax: Restaurant meals, clothing (over applicable thresholds), electronics, furniture, hotel stays (6% state + county surtax + a separate 5% Miami-Dade Convention Development Tax on hotel rooms), and most services. Miami's tourist economy means significant revenue is generated from hotel taxes and restaurant taxes paid by visitors rather than residents.
Miami-Dade property taxes are assessed by the Miami-Dade Property Appraiser at just value (market value) annually. The Florida Homestead Exemption reduces the assessed value of a primary residence by $50,000 for most tax purposes ($25,000 for school taxes; $25,000 for other taxes). The Save Our Homes (SOH) cap limits annual increases in assessed value for homesteaded properties to 3% or the CPI, whichever is lower.
For a $1.5 million Miami-Dade primary residence, the homestead exemption reduces the taxable value to approximately $1.45 million. At a combined mill rate of approximately 18-22 mills (reflecting Miami-Dade County, Miami city, school, and special district levies), annual property tax is approximately $26,100 to $31,900. For non-homesteaded properties (investment condos, vacation homes, commercial property), there is no SOH cap and no homestead exemption — assessments reflect full market value, and the 10% annual assessment increase cap for non-homestead properties provides limited protection in a rising market. Post-Surfside condo special assessments have added additional one-time or recurring costs for condo owners as building reserve requirements increased after the 2021 collapse.
The NYC-to-Miami migration is the largest inter-city wealth transfer in recent US history. The IRS Statistics of Income data for 2020-2023 shows Florida receiving tens of billions in adjusted gross income from New York, New Jersey, and California. To complete a legitimate NYC-to-Miami domicile change that withstands New York's aggressive audit program, high earners must:
1. Establish Florida domicile: buy or lease Florida property, obtain Florida driver's license, register to vote in Florida, change club memberships, update professional registrations. 2. Break New York domicile: most importantly, not maintain a permanent place of abode in New York City (or at minimum, spend fewer than 183 days in New York State, AND not maintain a permanent NYC abode). 3. Document the change: track days meticulously using credit card receipts, phone records, travel logs, and other evidence. New York's residency audit division is well-funded and aggressive — successful challenges recover millions per audit. Simply having a Florida address is insufficient; New York will examine whether you actually changed your life center or merely added a vacation home.
For a finance professional earning $500,000 and owning a $1.5 million primary home in Miami vs comparable NYC/LA scenarios:
| Tax Type | Miami, FL | New York City | Los Angeles, CA |
|---|---|---|---|
| State income tax | $0 | ~$43,000 (state) | ~$50,000 |
| City income tax | $0 | ~$19,380 (NYC) | $0 |
| Property tax ($1.5M home) | ~$27,000 | ~$20,000 | ~$12,000 (Prop 13) |
| Sales tax ($60K taxable spend) | ~$4,200 | ~$5,340 | ~$5,500 |
| Federal income tax | ~$147,500 | ~$147,500 | ~$147,500 |
| Total (approx) | ~$178,700 | ~$235,220 | ~$215,000 |
Miami's total burden is approximately $56,500 less than NYC and $36,300 less than LA at this income and home value. The California comparison narrows for homeowners who bought decades ago (Prop 13 benefit), but for newer buyers or renters, Miami's advantage over California is even larger than the table shows.
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Get Matched with a Local CPA →If you successfully establish Florida domicile and break New York domicile, you stop paying New York State income tax (up to 10.9%) and NYC city income tax (up to 3.876%) on your income going forward. You continue to pay federal income tax, Florida's 7% Miami-Dade sales tax, and Miami-Dade property tax if you own a home. The net saving depends on your income level — at $500,000, approximately $55,000 per year in state+city income tax. You must genuinely change your domicile and can no longer maintain a New York apartment as your primary or even secondary home if you want to fully escape New York taxation.
Florida's Documentary Stamp Tax applies to real estate deeds at $0.60 per $100 of consideration in Miami-Dade County (versus $0.70/$100 in other Florida counties). On a $2 million Miami condo purchase, the doc stamp tax is $12,000. There is also a doc stamp tax on mortgages of $0.35 per $100 of the loan amount — for a $1.5 million mortgage, that's $5,250. These are one-time closing costs, not recurring taxes. The intangible tax on new mortgages adds another $0.20 per $100, contributing $3,000 on that same $1.5 million mortgage.
NYC co-op and condo property taxes can be surprisingly high — or low, depending on abatements and the specific building. A $2 million NYC condo might pay $20,000-$35,000 annually in property tax depending on whether it has a 421-a or J51 abatement. A $2 million Miami condo without homestead exemption (non-primary residence) might pay $22,000-$30,000. For primary residences, Miami's homestead exemption and SOH cap reduce the burden significantly for longtime owners. For new buyers of luxury condos in both cities, the property tax burden can be roughly comparable, making income tax the dominant differentiator.
Yes, all real property in Florida including condos is subject to property tax. The Miami-Dade Property Appraiser assesses each condo unit individually at its market value annually. Condo owners receive the same homestead exemption and Save Our Homes protection as single-family homeowners if the condo is their primary residence. Non-resident condo owners (including international buyers who use their Miami unit as a vacation home) do not qualify for homestead and are assessed at full market value annually with no SOH cap.
Miami combines several factors attractive to Latin American high-net-worth families: (1) No Florida state income tax on investment income; (2) No Florida estate or inheritance tax; (3) The US gift tax exemption and foreign asset reporting (FBAR) framework, which offers predictable rules vs many Latin American jurisdictions with capital controls and currency risks; (4) Access to US-regulated financial institutions; (5) Spanish-language professional services ecosystem (lawyers, CPAs, bankers); (6) Geographic proximity — a 2-3 hour flight from Bogota, Caracas, or Sao Paulo. Miami-Dade has more billionaires from Latin America than any other US city outside New York.
When a Florida homeowner with a homesteaded property sells and buys a new Florida primary residence, they can 'port' their accumulated SOH benefit — the difference between their assessed value and market value — to their new home. This portability prevents homeowners from being financially trapped by their low assessment. For a Miami homeowner who bought in 2010 for $400,000 and now has a market value of $1.2 million but is only assessed at $540,000 (with SOH), they could transfer that $660,000 differential to a new purchase, reducing their new home's assessed value by up to $660,000. The portability feature must be applied for within 3 years of establishing homestead at the new property.
No. The City of Miami does not levy any personal income tax or wage tax. Miami residents' only income-related tax obligations are federal income tax and, if applicable, Washington's or another state's tax if they earn income in another state. There is no city-level Miami income tax, no Miami payroll tax, and no Miami city earnings tax. This is consistent across all Florida cities — state law prohibits Florida municipalities from imposing an income tax on individuals.