NEWYou can now listen to Fox News articles!
Washington state millionaires are increasingly eyeing Florida real estate to escape a changing tax landscape in the Pacific Northwest, according to a luxury real estate expert.
“I would say that the first thing is taxes. Income tax in Florida is 0%, and in Washington state, it’s 9.9% as of January 2028,” Margit Brandt, a luxury property specialist, told Fox News Digital.
“Capital gains in Florida is also 0%, and in Washington state, it’s 7%. 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,” she added.
Washington’s capital gains tax is tiered, with the first $1 million in taxable Washington capital gains subject to a 7% rate and amounts above $1 million subject to a 9.9% rate. Real estate is exempt from the tax.
TRUCKING COMPANY OWNER SUING STATE OVER ‘MILLIONAIRES TAX’ SAYS POLICY HITS SMALL BUSINESSES
Florida has emerged as one of the nation’s biggest winners in America’s migration boom, drawing residents and billions in income from across the country. (Jeffrey Greenberg/Universal Images Group/Getty Images)
The push comes after the Democratic-controlled Washington Legislature passed, and Gov. Bob Ferguson signed, a 9.9% levy on annual adjusted gross income above the law’s $1 million threshold. Set to take effect on Jan. 1, 2028 — with initial returns due in April 2029 — the legislation marks a major change for a state that currently has no individual income tax.
The tax is already facing a court challenge over its constitutionality, while real estate insiders say the new law is influencing some wealthy residents’ relocation decisions.
SEATTLE MAYOR SHRUGS OFF MILLIONAIRE-TAX CONCERNS AS 44% OF BUSINESS LEADERS CONSIDER LEAVING
Washington State’s new income tax is facing legal challenges, as some claim it violates the state Constitution. (Joe Sohm/Visions of America/Universal Images Group via Getty Images)
“We’ve seen actual deals — big deals — happen with high earners from Washington state,” Brandt said. “This is not hypothetical. These are closed transactions with people setting up a whole new life here in Florida.”
While comprehensive data tracking millionaire migration following the new tax are not yet available, a recent business survey found increased interest among respondents in relocating.
A recent survey released by the Association of Washington Business (AWB) — the state’s chamber of commerce and manufacturers association — found that 24% of respondents said they were considering moving their businesses out of Washington. That figure is up from 17% in the previous quarter and nearly triple the rate recorded 16 months ago.
Furthermore, 55% of surveyed business leaders said they are considering moving their personal residence to another state — a number that climbs to 67% in Spokane County, near the low-tax Idaho border.
WHY STARBUCKS PICKED NASHVILLE OVER SEATTLE FOR EXPANSION, ACCORDING TO LOCAL BUSINESS REPORTER
South Florida has drawn billionaires and corporate headquarters in recent years, buoyed by tax advantages and a booming finance and tech scene. (Eva Marie Uzcategui/Bloomberg/Getty Images)
The shift is mirrored in high-profile individual departures. Jesse Proudman, founder and CTO of privacy-focused AI platform Venice.ai, told Fox News Digital in May that he was leaving the Evergreen State, warning that a region once known as a “startup sanctuary” has grown increasingly hostile to business leaders.
Similarly, coffee giant Starbucks announced in April that it would invest $100 million to set up an additional support office in Nashville, Tennessee — a state with no individual income tax — where it expects to have 2,000 support jobs over the next five years. Starbucks said those jobs will include newly created positions, work brought in-house and some teams moved from Seattle.
Beyond balance sheets, Brandt said that safety, culture, and quality of life are primary drivers for wealthy transplants moving to Florida and other states, including Texas and the Carolinas.
“If they’re looking at a $10 million house, a $20 million house, a $50 million house, or a $100 million house, it’s more than just a house. It’s a whole new lifestyle,” Brandt said, adding that Florida’s lack of a state estate tax and its proximity to the Caribbean appeal heavily to multi-generational wealth. “They want safety, security, good schools, and to set up their financial future. Florida is just such an easy landing place, and I think we’re going to see way more of it in the coming years.”
Fox News Digital reached out for comment to Senator Patty Murray, D-Wash, Senator Maria Cantwell, D-Wash, as well as Washington state’s governor, Bob Ferguson.
Fox News Digital also reached out to State Sen. Jamie Pedersen (D-Seattle), the architect of the millionaire’s tax bill, for comment. Fox News Digital also reached out to Seattle Mayor Katie Wilson.
