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Benefits of Moving to Florida from California

The Sunshine State, Florida, is a common destination for individuals who want to relocate to warmer climes. It is in the extreme southeastern region of the U.S. Florida is one of the fastest-growing states in terms of population in the United States of America.  With the ongoing pandemic, many Californians are moving to Florida. Other […]

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Joseph Anthony
July 22, 2021
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The Sunshine State, Florida, is a common destination for individuals who want to relocate to warmer climes. It is in the extreme southeastern region of the U.S. Florida is one of the fastest-growing states in terms of population in the United States of America. 

With the ongoing pandemic, many Californians are moving to Florida. Other than this, there are other various reasons for this 'mass migration.' They include:

  • Florida is relatively cheaper than California
  • Property taxes in Florida are more affordable than in California
  • Florida has no income taxes
  • Unlike California, Florida offers assets protection benefits such as protecting the cash of life insurance and more.

Due to this, it is no surprise why many Californians often move to Florida. However, despite their similarities, the two states have significant differences that can cause a great impact on your quality of life. 

If you aren't sure whether moving to Florida from California is a wise decision, this post provides an in-depth explanation of some of the significant benefits of relocating. 

Read on to learn more about relocating to Florida.

Important Information You Need to Know Before Leaving California for Florida

If moving to Florida is on your bucket list, then you should take your time and learn the basic things and what to expect from your future home. 

It will be best to consider the most suitable time to move to Florida. Experts recommend that you avoid relocating during the summer if possible and if you choose to do so, plan to move early in the morning or later in the evening, rather than daytime. Weather-wise, the most suitable time to relocate to Florida is from November through May. Drink enough water to stay hydrated during the move since the hot climate will have a toll on your body's water levels.

It will help if you took the time to research the humidity in Florida. Because California is a dry state, you might be used to a lot of heat. On the contrary, the moisture and heat in Florida can be very oppressive, particularly during summertime which is generally more humid and hotter than California; you may name it tropical. 

You will sweat even when shield by the shade, forcing you to rely on air conditioning. Therefore, it would be best to prepare accordingly before moving out to Florida.

Furthermore, some Florida areas like Orlando can be over-commercial and touristy. Also, you need to know that there are many bugs in Florida. For example, fruit flies and roaches are a real nuisance, and you have to be thoroughly neat when in the kitchen. It is also normal to encounter snakes, scorpions as well as bloodthirsty mosquitoes in Florida.

Do You Get Taxed for Moving Out of California?

Technically, you do not pay tax to move out, nor are you prevented from relocating without paying your due taxes. However, if you have financial ties to the state, you will have to take responsibility and pay state income tax on revenue earned from the state. 

For instance, if you move out of the state yet have an operating business within the form, you will still have to pay state tax. You might wonder how California can determine if you owe state tax and your residency, right? Well, California's Franchise Tax Board has the requirements that determine if you are a California resident or not for tax assessment. 

However, to make this determination, the board does a test that examines your community and economic relationships. The factors looked into are the location of your largest residential property, your kids' schools and residence, and the property listed on your local and federal tax returns. 

They also look at the number of days you've spent in California. Additionally, they will look at your details like where you vote, your car's registration plate, and your healthcare providers.

It is no secret you are likely to pay high taxes in California. The income tax is the topmost in the nation; sales tax rates and corporate income tax make the top ten. As a result, you might feel the California tax pinch, and you might be searching for options to minimize the tax burden, or you might think that moving out is the best option. 

Intuitively, that makes sense, but it will be best to investigate whether moving will reduce the taxes before committing to a relocation.

What States Are Californians Likely to Move to?

Study shows that more than half of California citizens are considering relocating to other states for various reasons. That said, there are multiple states Californians might move to. For instance, many Californians often move to Texas to save income tax expenses. 

What's not to love about moving to keep your hard-earned money in your pockets for better projects? Moreover, Texas is one of the best state economies based on Gross Domestic Product.

If you are looking to own your own home, you should consider moving to Texas because the median house price is less than $300,000, making it affordable. Furthermore, with tons of food, culture and entertainment, and sports teams, you have so much to see and experience.

South Dakota is yet another state that Californians will likely relocate to. This state is popularly known for its Black Hills, low population, vibrant culture, and abundant wildlife. Plus, the cost of living in Dakota is almost 18 percent less than the government average. Generally, the housing and consumer goods prices and food expenses are low. What’s not to like about this state?

Californians are also likely to move to Washington state. The number one reason for relocating to Washington is jobs, jobs, and more jobs! There are numerous giant jobs like Boeing, Amazon, and Starbucks, among others. Also, Washington is among the states where you do not pay state income tax.

Another state that Californians are likely to relocate to is Arizona. You might move to Arizona because of the low cost of living, with approximately $350000 as the median house price. Furthermore, Arizona has embraced 21st-century technology, with big techs like Apple and Uber creating more job opportunities.

Nevada is another state you might consider moving to from California. Like Washington, Nevada has no state income tax, and also you get to save on medicine and food without paying sales tax. 

While entertainment is massive in Nevada, there is no shortage of scenery with Red Rock Canyon for rock climbers and the beautiful scenery of Mt. Charleston, which is only an hour's drive from Vegas.

Lastly, Californians are likely to move to Oregon state. If you love adventure, then Oregon might be ideal for you. With over three hundred coastline miles to explore, rivers, dunes, streams, and lakes, your possibilities are endless.

Perhaps, most importantly, relocating to these counties in Florida can mean multiple tax exemption benefits. Though each county has varying taxation rates, you should consider researching and identifying those with the lowest to help you make the right decision for you and your family. 

Ensure that you also study the taxation laws to help you know the expectations without getting into any legal implications. The last thing you want is to move to a new state and make rookie mistakes that can have adverse outcomes that you could have avoided by enlightening yourself.

What Do You Need to Do When You Move Out of California?

There are many things you need to do before relocating to another state from California. You will need to change your professional licenses and affiliations as required in the new state, for starters. 

And then, turn in your California driving license, get the new state's license, move and register your vehicles in your new state. It will be best to notify the California Department of motor vehicles within ten days of relocating to ensure that your driving records are up-to-date.

You will also need to cancel your California voter registration and club memberships, register as a voter and join social groups and clubs in the new state. Additionally, you will need to terminate the lease of any California property and rent or purchase a home in the new state. 

What's more, notify your credit companies and banks of your move, note that you will need to present a new state address for statements. Also, it will help if you have correspondence like bank statements sent to your new state address.

It will also be best to notify your contacts, family, and close friends of your permanent move prior and limit your physical presence in California. Set up an office or workplace in your new state. Doing this will help you settle in quickly and continue making sales as you would in California.

Are A Lot of Californians Moving to Florida?

Yes. Florida attracts thousands of residents to its sandy shores. So many California residents relocate to the Sunshine State that you may think it is a mass migration to Florida. The Sunshine State is full of extremes, from lacking a state income tax to other exciting adventures. 

There are various reasons why people relocate and even buy homes in Florida. One of the main reasons why Californians move to Florida is to save money they spend on taxes. Unlike other states like California, you can live in Florida without paying state income tax. 

The move is good because you can save your hard-earned money for business, vacation, fun activities, and even belongings. The best part is that the unemployment rate in Florida is low compared to California. This fact can motivate Californians to relocate to Florida because they have higher opportunities to make a living.

Florida residents can enjoy these benefits, especially during the early fall months, summer, and late spring, then tourism slows down.

Is it More Expensive to Live in California or Florida?

The living cost in California is undeniably higher than that of Florida. California is a beautiful state whose workers get more salaries than workers in various other states in the U.S like Florida. 

However, living in this state can be very pricey since things like housing, products, and services can cost you significant money. For example, the median house prices in California are much higher than those in Florida.

Generally, the cost of living in California is the second-highest in the whole country after Hawaii. According to Zillow, the median home cost is about $625,000, almost three times the $192,000 median in Florida. 

In San Francisco, you will need to pay a $218,299 down payment for a home, and as a result, the median price will exceed $1million. Following a study by the real estate firm Point2, if you are saving twenty percent of your income monthly, it will take you an average of seven years to afford that home.

California is among the top ten most expensive states when dealing with car insurance, making it more expensive than Florida. Utilities, transport, and groceries cost more. The cost of living in California is much higher than the national average, hence living in this state becomes more expensive than in Florida.

Why Is It Cheaper to Live in Florida than California?

Florida is cheaper to live in than California. If you want to receive more bang for your buck in daily services, you may want to relocate to Florida. While major cities in Florida have high-end living costs, most areas throughout the state are more affordable than other states in the U.S. 

So, the living costs in Florida can significantly vary depending on the city you choose to reside in and your lifestyle. AreaVibes states that the cumulative cost of living in Florida is a point lower than the national average. 

Meaning that you can access housing and healthcare services affordably because they fall below the national average. For example, the median home price in Florida is about $192,000, far less than that of California, which is $625,000.

Apart from the affordable housing options, fortunately for residents in Florida, the taxes are reasonable. While Floridians do not pay the state income tax, they also get deals on homeownership to spend one percent less on property taxes. Compared to other states, this is affordable than the states with the residents paying more than two percent.

Before leaving California, it is vital to understand all details about taxation in both states. The information can help you weigh your options and choose the appropriate state to fulfill your needs. Besides, it would be best to research potential changes in taxation that might be favorable or seem unreasonable to ascertain you make the right relocation decision. 

Here is essential tax information when moving away from California

 

Are Taxes Cheaper in Florida?

Florida is one of those states where one can comfortably pay taxes. Perhaps, it is because it has the lowest property tax rates or has no personal income taxes. No personal income taxes mean that pension income, social security income, and income from IRA do not receive any form of taxation. 

Florida property taxes are based on the market value of each property. Besides, the state offers property tax exemption which can reduce your overall tax bill after qualification. For instance, you can get a homestead tax exemption of up to $50,000. And if you are living with a disability or a senior citizen, you are exempted from taxes. 

There is no income tax, making this state a better option for anyone looking to save more on their monthly salary. However, state corporate taxes are currently at 4.458%, and the state's constitution recently prohibited inheritance taxes. 

Other taxation policies in Florida can be considered reasonably affordable for the average resident. Such include a sales tax of 6% on prescription medication, food, and non-prescribed medicine with no taxes. 

Electricity has a sales tax of 6.95%. However, individual counties can charge extra taxes on electricity.

How Much Tax Do I Pay in California?

If you are currently living in California, do you know how much taxes you pay annually? For example, do you know how much sales tax you pay for everything you buy? Most people in California consider taxes to be a bit higher than most states. 

The top marginal income tax is at 13.3%, but note that only a tiny portion of the state's population pays this tax. For the rest, income taxes range between 1-12.3%. If you aren't sure of which category you fall in, you may use a tax calculator to determine this. Ensure you provide details such as filing status, household income, and zip code. 

Sales tax is at 7.5%; however, you may incur an extra 2.5% depending on your city of residence. Fortunately, residents in California get sales tax exemptions for goods such as groceries and some prescription medications. At the same time, products such as cigarettes, alcohol, and gas get highly taxed. 

The increasing property tax in California often leaves many taxpayers burdened with hefty bills that always come as a surprise. Therefore, it would be best to be at par with all changes. Common reasons why property taxes are rapidly increasing are:

  • A change in law
  • Reassessment of the value of the land you live in
  • Increased home value

Trying to figure out taxes in this state can be daunting, but with continuous research, you can quickly get the hang of all the tax rates and policies, allowing you to prepare yourself. 

How Much Do I Save in Taxes Moving to Florida?

Personal income tax exemption has people moving to Florida now and then. But before you can make this huge decision, you ought to have valid reasons why you are relocating as this can help you avoid future regrets. 

If your primary reason is to evade taxes or live in a state you can afford to pay taxes, you should at least know the exact figures of how much you will save in taxes if you move to Florida. Foremost, you can save up to 13.3% taxable income since Florida has zero income tax rates. 

You can save between 2-4% on sales tax and property tax, and you can spend $3,000 as an individual living in Florida, compared to $6,000 in California. 

What Are the Tax Advantages of Moving to Florida?

Florida is among the most tax-friendly states and has extremely low per capita taxation. It has numerous tax advantages making it a preferred destination compared to most highly taxable states such as California. 

First, moving from California to Florida taxes are lower. The state has multiple tax exemptions on residents. For instance, you get exempted from paying property tax if Florida is your principal place of residence. 

You are also exempted from property tax if you live with a widow or widower, senior resident, fallen hero, military or veteran, and living with a person with a permanent disability. And surprisingly, you can save up to $750 annually on property tax after such exemptions. 

Another tax advantage of moving to Florida is you will incur zero taxation on your income. You will also not incur any state estate tax for the family inheritance. Though people are still getting charged for property tax, it is relatively low.

Moving to Florida also guarantees creditor protection. Simply put, the state provides its residents with insurance, annuities, cash value, wages, and retirement account protection. And if you are a married couple, creditors cannot easily access your TBE property as the state also protects such property. 

However, suppose you want to enjoy such tax benefits. In that case, you need to renounce or terminate connections with your previous state of domicile and prove that Florida is your current state of residence. 

You can achieve this through numerous ways, such as registering your vehicle in Florida, updating your address on your passport, registering to vote in Florida, and filing your federal income tax returns using a Florida address, but a few. 

Property Tax in Florida vs. California

Though Florida doesn't charge income tax, residents still pay real property taxes. Whether you are an individual or a business, and you own real property tax, it is fundamental to pay property tax. And there is no maximum or minimum amount you are required to pay. For instance, whether you own a $5,000 or $10,000 property, you owe the state real property tax that you must pay. 

In this state, the average property tax rate is 0.98%, and an average resident who owns a home pays $1,752 yearly on their property. Counties such as Alachua, DeSoto, Sarasota, Okeechobee, and Hendry are among relatively high average property tax rates. 

In California, an individual has to pay state income tax alongside real property tax. And just like Florida, whether you are an individual or business, it is a requirement to pay real property tax. So whatever value your property is, you will owe the state of California real property taxes. 

Unlike Florida, with 0.98% as the property tax rate, tax rates are assessed based on California's property's actual value. Meaning the buying price of the property will affect how much tax you pay, which can also rise due to inflation, resulting in more taxation on property. 

However, you can claim an exemption on property tax of $7,000, saving up to $70 annually. Counties such as Kern, Fresno, Alpine, Lake, Merced, Sacramento, and Yolo are among those whose property tax rates are higher in California. 

In both states, property tax gets used for local levies, municipal employees' pay, recreational and protective services, and resident services such as garbage collection. 

Have You Considered South Dakota Virtual Residency?

Virtual residency is the process of buying real estate or financial investments of another country or state, which you can acquire via an online service or through peer-to-peer digital networks. If you haven't considered virtual residency in South Dakota, many enticing benefits may intrigue you to make this step. 

Whether you are an expat, full-time traveler, or military personnel, South Dakota is one of the most welcoming states for people looking to gain virtual residence; the state has various favorable reasons and financial perks over other states. 

Foremost, by having a South Dakota virtual residence, you will benefit from no pension tax, personal property tax, state income tax, intangible tax on investment, state tax, and only 4% tax on RVs and cars. Vehicle license fees are also low, no vehicle inspection, affordable insurance rates on vehicles, and no state inheritance taxation. 

What Are the Benefits of the South Dakota Residency? 

By having a South Dakota residency, you can save on taxes, vehicle registration, and insurance. Besides these, there are other numerous benefits of being a resident of this state. For one, establishing a residency in this state is very easy, whereby within 24 hours of being in the state, you can get a five-year residency. 

This state is one of the lowest taxed states. It has zero state income tax, personal property tax, pension tax, inheritance tax, and other relatively affordable taxes. Another benefit is the ability to register and get a license for your vehicle quickly. And to top it all, vehicle insurance rates are pretty low. 

How Much Does It Cost to Move from California to Florida?

There are various benefits of relocating from California to Florida. Most importantly, people are moving because of the tax advantages. Who wouldn't want to live in a state where your earnings will not get taxed at all! And if you are looking to take home all your hard-earned cash, this might be the suitable state. 

However, if you choose to move to Florida, it is vital to research all the nitty-gritty details of relocating. Mostly because moving to Florida will vary significantly depending on when you decide to move, the size of the move, distance, and services you will need to assist in the transition. 

The distance between California and Florida is 2,705 miles from each state's center, which is quite long, meaning that it can be relatively expensive to move. Currently, the average cost of moving to Florida from California is about $4,500. 

However, when you factor in other considerations, it can range anywhere between $5,000-$8,000. These considerations include the exact moving distance, extra services such as packing and unpacking, and the number of rooms you are moving to. 

The number of rooms you are moving to will have varying charges. For instance, if you are moving to a studio or one-bedroom apartment and hiring a professional moving company, you can pay between $1,700 and $3,900. In comparison, a truck rental company can charge between $2,000-$2,600. 

If you are moving 2-3 bedrooms and hire a professional moving company, prices will range between $3,500-$6,900, and a truck rental company can charge between $2,100-$3,100, which is more affordable. 

Four plus bedrooms charged by a professional moving company can be anywhere between $4,900-$13,000. And a truck rental company can charge $2,700-$4,000 and even more. But, of course, these prices will also vary depending on the moving company you hire and how well you can negotiate for affordable pricing. 

Fortunately, there are several ways to reduce how much you can spend when moving between the two states. For instance, you may want to consider moving during off-seasons. Most people prefer moving during summer, as this can be a high peak season. 

Unfortunately, this means that moving companies are more likely to charge exorbitant prices, and you may also find yourself waiting for long until you can get moving services. Therefore, if you want to arrive in Florida during summer, it would be wise to book a moving company as early as possible. 

Also, you should factor in the current weather conditions as this can also affect the moving charges. For instance, Florida is vulnerable to hurricanes, especially during summer, and this can also mean higher pricing due to the climate risk factor. 

Before you move, ensure you factor in everything and research the most affordable moving company. Additionally, don't fail to review the company's shifting policies to know when to cancel or reschedule moving without losing cash or incurring additional charges. 

Generally, the cost of living in Florida is far way more affordable than in California. And while not so many people are moving from California to Florida, there is no harm in relocating. Hopefully, the above benefits of migrating to Florida can help you make the right decision. 

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