The dollar gap looks huge: Long Island's median property tax bill is around $11,129/yr; Florida's statewide effective rate is 0.76% compared to LI's ~1.98%. But Florida has caveats — a 3% annual assessment cap that resets when you sell, hurricane insurance that's nearly doubled, and HOA fees that often add $2,000–6,000/yr. Here's the honest comparison.
| Long Island | Florida | |
|---|---|---|
| Median annual property tax bill | $11,129 | ~$2,500 |
| Median single-family home value | ~$580,000 | ~$330,000 |
| Effective property tax rate (state median) | ~1.98% (LI) | 0.760% (FL statewide) |
| Annual assessment cap on homesteaded property | None (NY 2% levy cap, not assessment) | 3% (Save Our Homes) |
| Homestead exemption | STAR ($1,000–1,400/yr) | $50,000 off assessed value |
| State income tax | Yes (NY, up to 10.9%) | No |
| Sales tax (typical) | 8.625% (LI) | 6–7.5% |
| Homeowners insurance (typical, 2024) | $2,000–3,500/yr | $4,500–7,500/yr (FL average) |
Three things create the headline gap:
Three offsets that catch movers by surprise:
Net of those offsets, FL is still cheaper than LI for most homeowners — but the savings are typically $3,000–6,000/yr, not the ~$8,500 the property-tax-only comparison suggests.
Florida has no state income tax. New York taxes ordinary income up to 10.9% (top bracket, over $25M). For LI homeowners in mid-to-high brackets, the income-tax savings often dwarf the property-tax differential:
This is the real reason most LI-to-FL movers in the past decade have been higher earners and retirees with significant taxable IRA distributions — the income-tax savings are an order of magnitude bigger than the property-tax savings.
For retirees on Social Security alone: NY also doesn't tax Social Security, so the income-tax savings are smaller. The case for moving rests more on the property-tax gap.
The tax difference is real but a few things go the other way:
Yes once you homestead the FL property (you must own it, occupy it as your permanent residence, and file the Homestead Exemption application by March 1 of the year you want it). The 3% cap then applies starting the next assessment year. But you start at full market value — there's no carryover from your LI tax history. Portability does not work across state lines.
For most LI homeowners, yes — but by $3,000–6,000/yr in total housing costs, not $8,500+. If you have a household income above ~$200k, the income-tax savings make FL dramatically cheaper. Below ~$100k household income with high insurance and HOA exposure, the gap narrows considerably. Run your own numbers: pull a comparable FL home from Zillow, get a homeowners insurance quote, add HOA/CDD if applicable, and compare to your full LI cost stack.
Florida has a tangible personal property (TPP) tax that applies to business equipment, not homes. Your residence isn't affected. Mobile homes are a separate category with their own rules.
Not as a separate check, but the FL $50,000 Homestead Exemption serves a similar role — it reduces your assessed value before tax. The first $25,000 applies to all property taxes; the second $25,000 doesn't apply to school taxes. On a $330k home that's a ~$700–1,000/yr tax savings (comparable to LI Basic STAR in dollar terms, smaller in percentage terms).
Same as NY: property tax is part of your SALT deduction, capped at $10,000/yr ($5,000 if married filing separately). For high-tax LI homeowners the cap is binding (you pay way more than $10k in state + local tax combined and only get to deduct $10k). For most FL homeowners the cap isn't binding because there's no state income tax to combine with property tax.
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Estimates and educational content only — not legal, tax, or financial advice. Verify with your county or town receiver, an attorney, or a CPA before making financial decisions.