Washington Millionaires Flock to Florida to Escape New Income Tax

Wealthy individuals in Washington state are increasingly purchasing real estate in Florida to escape the state's new income tax structure, according to a luxury property specialist. Washington's introduction of a 9.9% tax on adjusted gross income exceeding $1 million, set to take effect in January 2028, is prompting high-net-worth individuals to seek more tax-favorable environments.

Margit Brandt, a luxury property specialist, highlighted that Florida's 0% income tax and 0% capital gains tax stand in stark contrast to Washington's rates, which include a 9.9% rate on capital gains above $1 million. "I just think that they've created this really punitive tax environment that's unappealing to the high-net-worth individuals who are the high earners in Washington State, and that's been the biggest kind of feeder for our market here," Brandt told Fox News Digital.

Washington's capital gains tax applies a 7% rate to the first $1 million in taxable gains and 9.9% to amounts above that threshold, though real estate transactions are exempt from this tax. The new income tax legislation is already facing legal challenges.

Brandt stated that these are not hypothetical scenarios, but rather "closed transactions with people setting up a whole new life here in Florida." While comprehensive data on millionaire migration due to the tax is not yet available, a survey by the Association of Washington Business found that 24% of respondents are considering moving their businesses out of state, an increase from previous quarters. Additionally, 55% of surveyed business leaders are considering relocating their personal residences, with this number rising to 67% in Spokane County.

High-profile individuals have also publicly announced their departures. Jesse Proudman, founder and CTO of Venice.ai, cited the increasingly business-hostile environment in Washington as a reason for his move. The coffee giant Starbucks also announced plans in April to establish a new support office in Nashville, Tennessee, a state without an individual income tax, with the relocation of some teams from Seattle.

Beyond tax considerations, Brandt noted that factors such as safety, culture, and quality of life are also significant drivers for wealthy individuals moving to Florida, as well as other states like Texas and the Carolinas. She added that Florida's lack of a state estate tax and its proximity to the Caribbean are appealing for multi-generational wealth, making it an "easy landing place."

Fox News Digital has reached out for comment to Washington state's senators, Governor Bob Ferguson, State Sen. Jamie Pedersen, and Seattle Mayor Katie Wilson.