Why High-Net-Worth Families Are Moving to Florida

• Florida can offer significant tax advantages: No state income tax and no estate tax can enhance wealth preservation for high-net-worth families
• Asset protection can be a key differentiator: Strong homestead laws and creditor protections may help support long-term financial security
• Proper domicile planning is critical: Establishing Florida residency requires careful planning and coordination

Florida has long attracted retirees, business owners, executives, and wealthy families seeking sunshine, championship golf courses, and a year-round outdoor lifestyle. Beyond the beaches and warm weather, Florida also offers meaningful financial and estate planning advantages that can help preserve wealth across generations. For many families relocating from high-tax states like New York, New Jersey, and Massachusetts, becoming a Florida resident can create opportunities for income tax savings, estate tax reduction, and stronger creditor protection. From Palm Beach to Naples and Boca Raton to Jupiter, Florida can be an attractive state for wealth management and retirement planning.

Whether it’s enjoying a morning tee time in Naples, boating in Jupiter, or spending winter months in Palm Beach, Florida offers more than lifestyle appeal. The state’s tax-friendly environment has made it one of the leading destinations for affluent individuals and retirees looking to optimize their financial plans.

Florida is one of only a handful of states with no personal state income tax. For high-income earners, business owners, and retirees, this can create substantial annual savings compared to states in the Northeast. Many seasonal residents who split their time between Florida and states like New York should carefully track residency rules, often referred to as the '183-day rule,' to help mitigate dual residency taxation.

Comparison of Top State Income Tax Rates

Source: Tax Foundation; State Individual Income Tax Rates and Brackets, 2025.

Florida does not impose a separate state estate tax or inheritance tax. This is especially important for wealthy families focused on preserving generational wealth. In contrast, some states, including several in the northeast, impose estate taxes at much lower exemption thresholds than the current federal exemption thresholds ($15 million per individual).

Comparison of State Estate Taxes

Source: Tax Foundation; Estate and Inheritance Taxes by State, 2025.

Florida’s homestead laws can provide significant benefits for homeowners with primary residence. Eligible residents may receive up to a $50,722 homestead exemption on property taxes in 2026 (the limit that used to be capped at $50,000 is now adjusted annually for inflation)¹, along with protection from substantial annual increases in assessed value through the Save Our Homes cap. For retirees and affluent families purchasing luxury homes near golf communities, waterfront neighborhoods, or private clubs, these protections can create long-term savings.

Florida is widely recognized for having some of the strongest asset protection laws in the country. The Florida Constitution provides broad homestead protection for primary residences, and many retirement accounts, annuities, and life insurance policies also receive creditor protection. This can be an important consideration for physicians, entrepreneurs, executives, and business owners.

Comparison of Statutory Creditor Protections

The following state law provisions are the authorities cited above.

Florida Constitution, Article X, Section 4 / Florida Statutes §222.14 / Florida Statutes §222.21 / N.Y. CPLR §5206 / N.Y. CPLR §5205(c) / N.J.S.A. 25:2-1(b) / Massachusetts General Laws Chapter 188. 

For individuals relocating from high-tax states, properly establishing Florida domicile is critical. States such as New York are increasingly aggressive when auditing residency claims. Steps often include filing a Declaration of Domicile, obtaining a Florida driver’s license, registering to vote, moving banking relationships, and updating estate planning documents with Florida counsel.

For affluent families seeking tax efficiency, retirement flexibility, and long-term wealth preservation, Florida remains one of the most attractive states in the country. Whether you are relocating permanently or establishing a second residence near Florida’s golf communities and coastal cities, a coordinated wealth management, tax, and estate planning strategy can be essential.

Understand the important distinction between domicile and residency and how it may affect your tax and estate planning strategy. To help put these considerations into action, we encourage you to view the domicile planning checklist. 

You can also explore additional wealth planning strategies to help align your tax, estate, and long-term financial goals.

Sources: 

1 Fla. Const. art. VII, § 6, as amended by Amendment 5 (2024), providing for annual inflation adjustments to the additional homestead exemption amount.

This article is for informational purposes only and is not intended as an offer or solicitation for the sale of any financial product or service. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of a professional advisor should be sought.

There is no assurance the any investment, financial, or estate planning strategy will be successful. These strategies require consideration for suitability of the individual, business, or investor.

Wilmington Trust is not authorized to and does not provide legal, tax, or accounting advice. Our advice and recommendations provided to you are illustrative only and subject to the opinions and advice of your own attorney, tax advisor, or other professional advisor.

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