Native New Yorker, President Donald Trump has called Florida home for several years. While he currently spends much of his time at The White House, his official residence is at his Mar-a-Lago home in Palm Beach, Florida.
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The lifelong New Yorker previously lived at his Trump Tower penthouse in Manhattan since 1983 until moving to Florida in October 2019.
“I cherish New York, and the people of New York, and always will, but unfortunately, despite the fact that I pay million of dollars in city, state and local taxes each year, I have been treated very badly by the political leaders of both the city and state,” he wrote in a post on X at the time.
Despite this sentiment, all the reasons Trump chose to move to Florida are unknown. However, the following four tax-related details likely played a role.
No State Income Tax
If you live in Florida, you don’t pay state income taxes on your salary, bonus or retirement income, said Alvin Carlos, chartered financial analyst (CFA), certified financial planner (CFP), a financial planner and managing partner at District Capital Management.
“Many states charge 5% income tax or more on your income,” he said. “If you make $100,000 a year, that’s an instant saving of $5,000 if you’re a Florida resident.”
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No State or Inheritance Tax
Florida residents don’t have to worry about leaving their loved ones to pay state inheritance or estate taxes, Carlos said.
“For example, if you live in Oregon, your heirs will have to pay at least 10% in estate taxes for amounts inherited over $1 million,” he said. “Some states have a higher exemption.”
No Tax on Social Security Income
Another reason why retirees like Florida is that the lack of Social Security income tax means more money in their pockets, Carlos said.
Compelling Homestead Protections
“Florida has some of the strongest homestead protections in the country,” said Nycole Freer, CFP, behavioral financial advisor (BFA), founder of Eden Financial. “These laws help protect the primary home as an asset, which is valuable for business owners, professionals and regular homeowners.”
This could make sense for Trump. While Mar-a-Lago’s value is unknown, estimates have ranged from $18 million to $1 billion, according to the Associated Press.
Financially speaking, moving to Florida could be a good move for you too. Depending on your circumstances, you might move your entire life to the Sunshine State or like Trump, opt to maintain an additional residence in another state.
If you opt for the latter, you’ll need to spend at least 183 days per year in Florida, according to the New Jersey Society of Certified Public Accountants. You’d also have to satisfy a number of other requirements, including establishing strong ties in the state — i.e., joining a church or country club — changing your mailing address and moving your professional relationships, such as doctors, to the south.
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This article originally appeared on GOBankingRates.com: 4 Reasons Trump Likely Chose Florida as Residence — and Why You Should, Too
