Free Guide — Davies Wealth Management

The Florida Relocation Guide:
How to Keep $300,000+ in Retirement

For pre-retirees and retirees weighing the move to Florida’s Treasure Coast — the tax math, the domicile steps, and the mistakes to avoid.

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Why Florida’s tax structure adds $15,000+/year vs. New York, NJ, or CT

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The 183-day rule and how to establish domicile the right way

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4 costly mistakes transplants make (and how to avoid them)

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A complete Florida Domicile Checklist from a Stuart-based fiduciary

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Davies Wealth Management — Fee-Based Fiduciary, Stuart FL

What This Guide Covers

Four sections. Everything you need to make a financially sound move.

📈

Tax Savings Math

The exact annual and 20-year calculations for common Northeast income levels

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Domicile Steps

How to establish FL domicile correctly — and audit-proof it against your former state

⚠

What to Watch For

Insurance costs, HOA fees, hurricane prep, and estate plan updates

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Full Checklist

A complete domicile checklist with 30-day, 60-day, and year-one milestones

Section 1

Florida’s Tax Advantage — The Numbers That Matter

Florida is the only contiguous state with no income tax, no estate tax, no inheritance tax, and no intangible property tax. The compounding effect on retirement wealth is significant.

The New York Comparison

A married couple earning $150,000 in combined retirement income pays approximately $8,900–$15,000+ in New York state and local income taxes annually. Moving to Florida eliminates this entirely.

$60K

Retained over 5 years

$120K

Retained over 10 years

$300K+

Retained over 20 years

The Florida Homestead Exemption

Florida’s homestead exemption provides three powerful benefits for primary residence owners:

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$50,000 exemption from your property’s assessed value — directly reducing your tax bill

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Save Our Homes cap — annual property tax assessment increases are capped at 3% or CPI (whichever is less), locking in your tax base as values rise

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Creditor protection — unlimited protection from most creditors for your primary residence equity

Example: $600,000 Martin County Home

The $50,000 homestead exemption typically reduces your annual property tax bill by $600–$1,200 depending on your county’s millage rate. Over 20 years with the Save Our Homes cap working in your favor while surrounding property values rise, the total savings on a coastal Florida home can exceed $40,000.

No Florida Estate Tax

New York imposes a state estate tax starting at $1 million, with rates climbing to 16%. Florida has no estate tax. For estates with real property, IRAs, and investment accounts totaling $2–5M, the Florida advantage can mean $50,000–$400,000+ more transferred to heirs — not to the state.

Section 2

Establishing Florida Domicile — The Right Way

Moving to Florida physically is not the same as establishing Florida domicile. Your former state will look for every reason to continue taxing you — especially if you have significant assets.

The 183-Day Rule — And Why It’s Only the Starting Point

To establish Florida residency for tax purposes, you must spend more than 183 days per year in Florida. But days-in-state is only the beginning. You must also demonstrate that Florida is your “domicile” — your permanent home and the place you intend to return to when you travel.

States like New York use a sophisticated audit process that analyzes your credit card transactions, cell phone records, medical appointments, and social activities to determine where you actually lived — regardless of where you claim residency.

The Steps You Must Complete (Do All of These)

🚗 Within 30 Days

Get FL driver’s license • Register vehicles in FL • Register to vote in FL • Open FL bank account

🏠 By March 1 (Year After Move)

File for Homestead Exemption at your County Property Appraiser’s office

📋 Within First Year

Update will, trust & POA for FL law • Establish FL healthcare providers • Notify former state of domicile change

⚠ Former State Audit Risk

New York is particularly aggressive in auditing taxpayers who claim to have moved. They have up to 4 years after your final NY return to audit your domicile claim. The burden of proof is on you to demonstrate you are no longer a New York resident. Working with a Florida-based fiduciary advisor to document your domicile establishment is worth every dollar invested.

Create Your Paper Trail

Keep records of your Florida life activity. Auditors are looking for:

✓ Utility bills showing FL address

✓ Medical appointments in Florida

✓ FL church/club memberships

✓ Credit card spending in FL

✓ Calendar log of FL days

✓ Cell phone records (FL towers)

Section 3

What to Watch For When Making the Move

Florida’s tax advantages are real — but there are trade-offs that every transplant should understand before signing a purchase contract.

Property Insurance Costs

Florida’s insurance market has seen 50–100% premium increases in coastal areas since 2020. Before buying, request 3 years of insurance payment history from the seller and get quotes from at least 3 carriers. Citizens Insurance (Florida’s insurer of last resort) is an option but carries limitations.

Hurricane Preparedness Budget

Budget for impact windows or shutters ($5,000–$30,000+), a whole-home generator ($8,000–$20,000 installed), and annual storm prep maintenance ($500–$1,500). These are real costs — factor them into your move budget and ongoing expenses.

Update Your Estate Plan

Florida law governing wills, trusts, powers of attorney, and healthcare directives differs from most Northern states. Your existing documents may still be valid in Florida, but should be reviewed by a Florida-licensed estate attorney within the first year of your move.

The Timing Sweet Spot

For maximum first-year benefit, move before July 2nd of the calendar year — this ensures you can spend 183+ days in Florida before December 31st. Even a partial-year move eliminates FL income tax from day one. Both spouses must establish FL domicile.

HOA Fees & Assessments

Many of the Treasure Coast’s best communities carry HOA fees from $200–$800+/month. These are not tax-deductible. Review the HOA’s reserve fund health, any pending special assessments, and recent meeting minutes before committing to a purchase.

Selling Your Northern Home

Timing matters. If you sell your primary residence while still a New York (or other state) resident, the capital gains — while still exempt up to $250K/$500K federally — may be subject to state tax. Establish FL domicile first, then sell, to minimize state tax exposure on the sale proceeds.

Section 4

Your Florida Domicile Checklist

Work through these in order. Completing all of them builds the strongest possible domicile case and protects you in an audit.

Within 30 Days of Arrival

Apply for Florida driver’s license

Open a Florida bank account

Update address with USPS

Within 60–90 Days

Transfer primary banking to FL institution

Update address on all investment accounts

Establish FL primary care physician

Join FL community organization or club

By March 1 (Following Year)

File for Homestead Exemption

Verify vehicle is titled in FL

Within First Year

Update will, trust & POA for FL law

Update beneficiary designations

Update healthcare directive (AHCD format)

Notify former state Revenue Dept. of move

Start keeping calendar log of FL days

Ready to Run Your Personal Florida Numbers?

Thomas Davies, CFS has spent 30+ years helping retirees and pre-retirees on Florida’s Treasure Coast make this transition strategically. A 30-minute discovery call costs nothing and could clarify everything.

Schedule a Complimentary Call

Davies Wealth Management • Fee-Based Fiduciary • (772) 210-4031 • Stuart, FL

About the Author

Thomas Davies, CFS

Davies Wealth Management is a fee-based fiduciary RIA based in Stuart, Florida. With over 30 years of experience serving Treasure Coast families, Thomas helps pre-retirees and retirees navigate the financial complexities of retirement — including Florida relocation, tax planning, and income strategies.

30+

Years Experience

100%

Fee-Based Fiduciary

SEC

Registered RIA

Stuart

Treasure Coast FL

⚠ This guide is for educational purposes only and does not constitute financial, legal, or tax advice. Tax laws and regulations change; consult a qualified tax professional and estate attorney for guidance specific to your situation. Past savings illustrated are for illustrative purposes only and individual results will vary. Davies Wealth Management is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. • Privacy Policy

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Florida Relocation Guide: Keep $300,000+ in Retirement

The Florida Relocation Guide:How to Keep $300,000+ in Retirement