After the Tax Cuts and Jobs Act (TCJA) became a reality, financial experts throughout the country predicted New Yorkers and others from high tax states would flee the state in search of a more tax friendly alternative. Well, 2019 has come to a close and there has been time to review the numbers, so what happened? Did residents leave their homes due to changes in tax obligations?
According to the data, the answer is yes. Of New Yorkers who chose to move in 2019, 63.1 percent moved to a different state. New York was not alone. New Jersey reported higher numbers with 68.5 percent choosing to take their move to a different state.
The most commonly cited reason from the move: retirement and taxes.
Where did everyone go?
As predicted, a large number chose to move to Florida. Other popular destinations included Idaho, South Carolina, Arizona and Washington. The fact that three of the top ten destination locations have no state income tax further supports the argument that taxes played a role in the number of people that chose to move to another state.
What does this mean for New Yorkers?
Although previous attempts have not been fruitful, New York continues to look for ways to work around the state and local tax deduction (SALT) limitations placed within the TCJA. In the meantime, taxpayers who may have attempted a workaround could find themselves facing a tax audit. Those in this situation are wise to seek legal counsel. The attorneys at Goldburd McCone are experienced in these matters and can better ensure your legal rights are protected.