Florida’s luxury housing market is experiencing a noticeable uptick as wealthy individuals from Washington state relocate to escape a newly enacted “millionaire tax.” The tax, signed by Gov. Bob Ferguson and set to take effect on Jan. 1, 2028, imposes a 9.9% levy on adjusted gross income above $1 million, a stark contrast to Washington’s historic lack of a personal income tax.
Zero‑tax appeal drives migration
“Income tax in Florida is 0%, and in Washington it’s 9.9% as of January 2028,” said Margit Brandt, a luxury‑property specialist who tracks high‑end transactions. She added that capital‑gains tax follows the same pattern: 0% in Florida versus 7% in Washington. “They’ve created a punitive tax environment that’s unappealing to high‑net‑worth individuals, and that’s been the biggest feeder for our market here,” Brandt explained.
Legislative background
The Washington Legislature, controlled by Democrats, passed the tax earlier this year, and the governor signed it into law. The measure targets annual adjusted gross income above $1 million, with a tiered structure: the first $1 million is taxed at 7%, and any amount above that faces a 9.9% rate. Real‑estate transactions are exempt, but the broader fiscal impact is prompting business leaders and affluent families to consider relocation.
Business sentiment reflects growing concern
A recent survey by the Association of Washington Business (AWB) found that 24% of respondents are contemplating moving their businesses out of the state, up from 17% in the prior quarter and nearly three times the rate recorded 16 months ago. Moreover, 55% of surveyed business leaders are considering moving their personal residence to another state; the figure jumps to 67% among respondents in Spokane County, which borders low‑tax Idaho.
High‑profile departures illustrate the trend
Jesse Proudman, founder and CTO of privacy‑focused AI platform Venice.ai, told Fox News Digital in May that he is leaving Washington, describing the state as once a “startup sanctuary” that has become increasingly hostile to business leaders. In a parallel move, Starbucks announced a $100 million investment to open a new support office in Nashville, Tennessee—another state with no individual income tax—projecting 2,000 support jobs over the next five years.
Beyond taxes: lifestyle factors
Brandt emphasized that safety, culture, and quality of life also play major roles. She noted that affluent buyers looking at homes ranging from $10 million to $100 million value Florida’s lack of a state estate tax, its proximity to the Caribbean, good schools, and a secure environment for multigenerational wealth. “It’s more than just a house; it’s a whole new lifestyle,” she said.
Political response
Fox News Digital reached out to Washington’s Democratic senators, Patty Murray and Maria Cantwell, as well as Gov. Bob Ferguson, for comment. The administration has not yet responded publicly to the criticism that the tax may drive away high‑earning residents and businesses.
Implications for Florida
Florida real‑estate agents anticipate continued demand for luxury properties as the tax takes effect. The influx of wealthy newcomers could bolster local economies, increase tax‑base contributions through sales and property taxes, and support ancillary services such as private schools and security firms—areas that align with traditional family values and community stability.
While comprehensive migration data will not be available until after the tax’s first filing season in April 2029, early indicators suggest a significant shift in where America’s high‑net‑worth individuals choose to live and invest.
Original reporting: Fox News (HLL/CB) — read the source article.
