The new tax law limits the amount you can deduct to $10,000 even if you pay two, three or ten times that much. The 2018 tax year was the first year this new limitation applied. Lots of high earners have recently discovered just how much that change cost them, short answer - plenty.
Fox Business reports many high income individuals who have a second residence in a low (or no) income tax state have moved their residence of record to that other location.
While Florida received more movers than any other state last year, New York's outflows to the Sunshine State were the highest – 63,772 people. New York had the third-largest outflows of any state, with 452,580 people moving out within the past year. California, another high-tax state, had the largest outflow of domestic residents – with the highest proportion of people headed to Texas, Arizona and Washington.I personally know 13 people (4 families) who moved from CA to NV or ID in the past 2-3 years, at least in part to avoid CA’s highest in the nation income (and total local) taxes. This phenomenon is no joke.
