How Much Will I Save on Income Tax Moving From New York to Sarasota?

Updated October 2026 | By Darren Dowling, Founder, Beyond Realty

The short answer

Florida has no state personal income tax, so once you are a Florida resident, the New York State and New York City income tax you pay today goes away on income that is not sourced to New York. New York's 2026 state rates top out at 10.9%, and New York City residents pay an additional city income tax of 3.078% to 3.876%. For many New York City professionals, combined state and city income tax works out to roughly 8% to 10% of income, which is about $8,000 to $10,000 for every $100,000 earned.

What New Yorkers pay today

• New York State: nine graduated brackets, with a top rate of 10.9%.

• New York City: an extra resident income tax of 3.078% to 3.876%, on top of the state tax.

• Combined ceiling: up to about 14.8% at the very top for city residents.

• Estate tax: New York has its own estate tax. Florida has no state estate tax and no inheritance tax.

What changes when you move to Sarasota

• No state tax on wages, business income, investment income, capital gains or retirement income.

• No state estate or inheritance tax.

• Property tax and homeowners insurance become the bigger line items to plan for, so look at the full cost of owning, not just the tax savings.

The part people miss: proving you left

New York looks closely at residency changes. If you keep a permanent place to live in New York and spend more than 183 days there in a year, the state can still treat you as a resident for tax purposes. Keep a simple record of where you spend your time, and make Florida your true home: driver license, voter registration, vehicles, a Declaration of Domicile, and your primary home here. Your CPA can tell you what applies to income you still earn from New York.

A timing note for 2026

Florida voters decide Amendment 3 on November 3, 2026. If it passes, people who are permanent Florida residents by December 31, 2026 would qualify for a much larger homestead exemption starting in 2027, while people who arrive later would wait four years for it. If a move was already on your calendar, that date is worth a conversation with your CPA.

Frequently asked questions

Will I still owe New York tax the year I move?

Usually you file a part-year resident return for the year you move, and New York can still tax income sourced to New York after you leave. Your CPA can map out what that looks like for you.

Does Florida tax retirement income or Social Security?

No. Florida has no state personal income tax, so pensions, IRA and 401(k) withdrawals, and Social Security are not taxed by the state.

Are Florida property taxes higher than New York?

It depends on the community and the home. Florida's homestead exemption and the Save Our Homes cap help once you are homesteaded. Our community cost of ownership guides show real tax, insurance and dues figures for specific Sarasota and Lakewood Ranch communities.

How do I estimate my own savings?

Use our Florida Tax Advantage Savings Calculator, which compares your current state's taxes with Florida.

Planning a move from New York?

Book a Strategy Session with Darren Dowling. We help New York buyers compare Sarasota, Longboat Key, Lakewood Ranch and the barrier islands on lifestyle and true cost of ownership, so the numbers work before you commit.

Darren Dowling, Founder | Beyond Realty

2170 Main Street, Suite 103, Sarasota, FL 34237

Direct: 941-204-0493 | [email protected] | www.beyondrealtyfl.com

This article is general information, not tax or legal advice. Tax rules change and every situation is different, so talk with your CPA or attorney before making residency or tax decisions.