High-income New Yorkers could save nearly $200,000 by forgoing exorbitant rents and taxes in the Big Apple for the sun-drenched beaches of Miami, according to a recent study.
Financial Information Provider SmartAsset evaluation how much people making six figures in cities like New York, San Francisco and Chicago would save in the event that they packed their bags for Florida’s largest city.
A Manhattan resident with a salary of $650,000 would save $195,000 due to no Florida state income tax and lower cost of living, SmartAsset found.
Employees with a salary of $650,000 in New York face an efficient tax rate of 45% in New York—after federal, state and local taxes—which drops to 35% as a Miami resident.
According to the study, the identical Manhattan resident who earns $150,000 could save nearly $50,000 by moving to Miami.
A New Yorker’s cost of living would even be significantly reduced if he moved out of Manhattan, where average overhead costs are 137.6% higher than the national average.
![New Yorkers earning a six-figure salary could save up to $200,000 in taxes by moving from Manhattan - where overhead costs are 137% higher than the US average - to Miami, where costs are only 22.8% higher than the average.](https://nypost.com/wp-content/uploads/sites/2/2023/06/NYPICHPDPICT000010760718.jpg?w=1024)
The study found that in Miami, costs are only 22.8% higher than the national average.
Manhattan recently saw a record high median rent for the third month in a row.
According to the newest report from the rental market from appraisers Miller Samuel and brokerage giant Douglas Elliman, the borough’s median rental price was $4,395 monthly in May – a rise of three.6% from April’s median of $4,241 monthly.
That April figure was a 1.6% month-on-month increase from the March median of $4,175, which broke last July’s record of $4,150.
By comparison, Miami’s median rent was $2,900 in May – a slight increase from the median monthly rent of $2,840 in April, according to data released by Zumper.
Miami residents have been blaming New Yorkers for rising rents for the reason that pandemic, when many Manhattan residents flocked south, advocating lower taxes, warmer weather and looser COVID restrictions.
According to SmartAsset, highly taxed San Francisco and Chicago residents would also increase their savings by moving to Miami.
![A SmartAsset study found how much money residents could save on taxes by moving from New York to Miami, which can be attributed to Florida's lack of state income taxes.](https://nypost.com/wp-content/uploads/sites/2/2023/06/NYPICHPDPICT000012418113.jpg?w=780)
![The average Manhattan apartment rented for $4,395 in May, significantly higher than the average Miami rent of $2,900 in the same month.](https://nypost.com/wp-content/uploads/sites/2/2023/06/NYPICHPDPICT000012418757.jpg?w=1024)
According to a study in San Francisco, where the price of living is 83% higher than the US average and the effective tax rate is 46%, people earning $650,000 a 12 months will earn $153,000 more in Miami.
Affluent Chicagoans can have less incentive to move, aside from the weather. A Windy City resident earning $650,000 would save just $10,000 as the price of living in Chicago is 17.1% higher than the norm, regardless that the effective tax rate is 40%, according to the study.