The absence of a state personal income tax is the provision that gets cited when New York residents discuss relocating to Florida. It is also the one that does the least work over a long holding period. Two less-discussed mechanisms, an assessment cap and a portability provision, account for much of the long-term advantage.
Sandra Tuttle, founder of Island Welcome Real Estate in Summerland Key, works with relocating buyers in the Florida Keys and reports sustained inbound interest from New York and California over the past several years.
The Assessment Cap
Florida’s Save Our Homes provision limits annual increases in assessed value on a homesteaded property to three percent. In a market where actual values have risen considerably faster, the gap between assessed and market value compounds year over year.
For a buyer planning to hold a primary residence for a decade or more, this is the provision that produces the largest cumulative effect. It applies only to homesteaded property, meaning the owner’s primary residence, not a second home or an investment property.
Portability
The second mechanism allows an owner who has accumulated savings under the assessment cap to carry a substantial portion of that benefit to a new primary residence within Florida. An owner who held a home for many years and built up a significant gap between assessed and market value does not surrender it entirely when moving.
The practical effect is that relocating within the state does not reset the clock the way it would in most jurisdictions. For buyers who expect to move at least once after arriving, the provision materially changes the long-term calculation.
The November Measure
A proposed amendment on the November ballot would raise the homestead exemption from $50,000 to $250,000 on non-school taxes, subject to 60 percent voter approval. The benefit concentrates among owners whose property values sit near the exemption ceiling.
For buyers purchasing at higher price points, the relief is real but proportionally smaller. Tuttle uses one percent of purchase price as a working estimate for annual property tax in the Keys, and against that base the additional exemption is a partial offset rather than a decisive factor.
The measure also contains a timing provision. Buyers who are not homeowners by the end of 2026 would see the expanded exemption phased in across five years rather than applied at full value.
What This Does Not Cover
Tuttle is careful about the boundary between market guidance and tax advice. Real estate agents can outline the structure and explain how the provisions interact with a purchase, but the analysis that determines whether relocation makes financial sense for a particular household belongs with a Florida CPA.
She also notes that the tax position is one input among several. Carrying costs in the Florida Keys include insurance that runs near one percent of value annually, and buyers evaluating a move on tax grounds alone frequently underestimate what ownership costs once they arrive.
About the Expert
Sandra Tuttle is the founder of Island Welcome Real Estate, a local boutique real estate brokerage based at 24437 Overseas Highway, Summerland Key, Florida. She has lived in the Florida Keys since 1997 and has worked in Keys real estate for 22 years. Her practice mainly focuses on canal-front and waterfront residential property in the Lower Keys and Middle Keys, but they service all of the Florida Keys, from Key West to Key Largo.
Disclaimer: This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
