Florida’s Tax Haven Sparks Real Estate Interest in Palm Beach County
POSTED ON December 28, 2018 - 5000 North Ocean
The Florida lifestyle has always been compelling. While northerners button up their winter coats and slip on their snow boots, residents of the Sunshine State are slipping on their bathing suits and heading off to the beach. But in today’s tax environment, swaying palms and icy umbrella drinks may not be the only compelling reasons to move here.
While the new tax law is widely credited with adding to our robust economy, there have been unintended consequences that have many high tax states experiencing an outflow of permanent residents. Residents in states like New York and New Jersey who are no longer able to itemize deductions for state and local taxes are moving to areas with more favorable tax climates. Florida, which has no state income tax, has been a major beneficiary of the trend – attracting new residents who are drawn to lower taxes, as well as the warm weather lifestyle with lush golf courses and beautiful beaches to enjoy.
“The new tax laws certainly spurred interest. Buyers who were casually looking suddenly had another reason to purchase,” says Ed Jahn, Senior Vice President of Kolter. “Non-residents started to review how much time they would now spend in Florida and re-evaluated their residence status.”
Personal income tax isn’t the only incentive to relocate to Florida. Another burdensome tax is the estate tax. Many states collect this tax, including: Connecticut, New York, Maryland, New Jersey, California, and Oregon. However, Florida, once again, provides a tax haven for homeowners, as it doesn’t apply a tax to estates, furthering the appeal to make the move to the Sunshine State.
And that’s not all. Establishing a Florida homestead residence brings even greater tax benefits. As long as you spend a minimum of six months in residence in Florida, you can qualify for The Homestead Exemption, which grants homeowners a break on their real estate taxes, foregoing tax on the first $50,000 of value for their primary property. Even better, the “Save our Homes” cap limits annual increases to just 3% year over year.
Due to the strong job market driving relocations, Palm Beach County is becoming a hot spot for real estate. While it offers a wide variety of options to homebuyers, waterfront property is becoming scarcer.
Oceanfront homebuyers are fortunate to find a new offering currently under construction at 5000 North Ocean. Kolter’s 19-story condominium tower on Singer Island blends the bold shapes and neutral palette of modern design effortlessly with its natural surroundings. Just 48 residences will encompass the 4.5 acre ocean-to-Intracoastal site, taking advantage of waterfront views to the east and west.