Florida real estate agents say wealthy Washington residents are increasingly looking south as the state prepares to impose a 9.9% tax on annual income above $1 million. One luxury property specialist described completed Florida home purchases by Washington clients, though broad data confirming tax-driven migration are not yet available.
Key takeaways
- Washington’s new tax is scheduled to take effect Jan. 1, 2028; initial returns are due in 2029.
- A Florida real estate specialist says some wealthy Washington residents have already made purchases and are establishing new lives there.
- A business survey found more respondents considering moves, but it does not establish that the tax caused those plans.
The reports point to growing interest, not a verified statewide exodus. Washington’s new levy is also distinct from the state’s existing capital-gains tax, which applies to certain gains and exempts real estate.
What the new tax changes
Washington has no individual income tax under current law. The new law, passed by the Democratic-controlled Legislature and signed by Gov. Bob Ferguson, sets a 9.9% levy on annual adjusted gross income above $1 million. It is scheduled to begin Jan. 1, 2028, with the first returns due in April 2029. The law is facing a court challenge over its constitutionality.
The state’s separate capital-gains tax is tiered: the source reports a 7% rate on the first $1 million in taxable Washington capital gains and 9.9% on amounts above that threshold. Real estate is exempt. Florida has no state individual income tax.
Florida agents describe new buying interest
Margit Brandt, a luxury property specialist, told Fox News Digital that Washington high earners have become an important source of business for her Florida market. She said deals had closed and buyers were setting up new lives in the state. The report did not provide transaction totals or independently verify how many purchases were prompted by the tax.
Brandt said lifestyle considerations also matter, citing safety, schools and Florida’s appeal to families managing wealth across generations. Florida’s lack of a state estate tax and its proximity to the Caribbean were additional attractions she identified.
Survey points to broader relocation concerns
An Association of Washington Business survey found that 24% of respondents were considering moving their businesses out of the state, up from 17% in the prior quarter. It also found that 55% were considering moving their personal residence elsewhere, rising to 67% among respondents in Spokane County. The survey reflects stated intentions; it does not show how many people ultimately moved or why.
Other developments offer context but do not prove a direct link to the tax. Venice.ai founder Jesse Proudman said he was leaving Washington, while Starbucks announced a $100 million investment in an additional Nashville support office, with plans for 2,000 support jobs over five years. The company said some teams would move from Seattle, alongside new and in-house positions.
Whether the tax produces a lasting outflow of high earners remains uncertain. For now, real estate professionals report interest from some Washington buyers, while legal challenges and the 2028 start date leave the policy’s full effects to be seen.