Secret Tax For New Yorker’s Fleeing To Florida, Texas

Thinking about leaving New York? You're not alone, but be careful, there's a lot of hidden costs. Some are paying way more than expected.

New census data shows more than 415,000 people left the state in 2024. Many are heading to Florida and Texas to escape some of the highest income taxes in the country. But there's the catch.

New Yorkers Moving Out of State Are Facing Additional Taxes

New York doesn't just let you go. Experts tell Hudson Valley Post that the Empire State has some of the most aggressive residency auditing rules in the country, and if you don't act quickly, you could end up paying taxes in two states at once.

New York taxes you as a resident if it's the state where you permanently live. But even if you move into another state, you can still be taxed as a New York resident under what's called the Statutory Residency test.

That kicks in if you maintain a permanent livable place in New York and spend over 183 days in the Empire State in any given year.

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Spending only a few minutes in New York in one day counts as a full day. So the days can add up fast.

From 2022 to 2023, New York State auditors collected more than 3.2 billion dollars from over 750,000 residency audits.

How To Prove You've Moved On

Tax professionals say there are many things to do to prove you've moved out of state.

Including changing your driver's license, voter registration, and vehicle registration. Update your mailing address with the IRS, your bank accounts, brokerage accounts, and any investment vehicles. Find new doctors, dentists, and a new vet if you have pets.

Also, execute a new will in your new state. The more you can show New York that your life has genuinely moved, the better.

Even after you've done all of that, there are still lingering tax issues to be aware of.

Lingering Tax Issues

If you have vested compensation, a business sale, or other large income events that occurred while you were a New York resident, the state may still consider that income taxable.

If you sell New York real estate after your move, transfer and mansion taxes could still apply, depending on the property's value.

New York State has nine income tax brackets ranging from 4 percent to 10.9 percent, and New York City residents pay an additional local income tax on top of that.

For some fleeing New Yorkers, the motivation to leave is obvious. But doing it sloppily can cost more than staying put.

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