5 Reasons not to move to Florida or Texas

Thinking Florida or Texas For Your Next Move? Think Again

Are you considering a move to the sunny states of Florida or Texas? With their warm weather, beautiful beaches, and no state income tax, it may seem like an appealing option. But before you pack your bags and head south, we urge you to consider the following reasons why moving to these states may not be the best idea.

5 Reasons Why Moving To Florida Or Texas May Not Be For You

1. Culture Shock

Moving to a new state is not just about the location - it’s about the culture and way of life. While Florida and Texas may seem like familiar places within the United States, they still have their own unique cultures that may be vastly different from where you currently live. Rodeo culture and southern hospitality, for example, are huge in Texas, as is beach and retiree culture in Florida. This is a much slower pace of life than Northerners may be accustomed to, focused on relaxing and community events rather than the work-driven and highly-scheduled lifestyle in many Northern cities. In New York, for example, people tend to even walk and talk faster than Southerners.

In some cases, the culture in parts of California or the Northeast may be more similar to somewhere in Latin America or Europe than it is to Florida or Texas. Put simply, a move to these states may not necessarily provide the sense of familiarity and security that you were hoping for.

2. Hidden Taxes and Fees

While the lack of state income tax may seem like a great benefit, the truth is that these states make up for it in other ways. Higher property taxes, sales tax, and insurance rates can quickly add up and offset any savings you may have had from not paying state income tax. And with changes in government policies or elections, these fees can suddenly increase without warning.

Let’s look at Florida for example. According to the Tax Foundation, Florida has

◾ 5.5% corporate income tax
◾ 6% state sales tax rate
◾ max local sales tax rate of 2%
◾ average combined state and local sales tax rate of 7.002%

Compared to taxation in the United States overall, this puts Florida at their #4 ranking in the Tax Climate Index, below Wyoming, South Dakota, and Alaska. However, this is mainly because of the lack of state income tax. New Jersey, the state lowest on the list, has a lower average combined state and local sales tax rate and a comparable sales tax rate.

3. National Issues

Moving to a different state may seem like an escape from national issues and cultural differences. The reality is that these issues are not exclusive to any one state. While you may find more like-minded people in certain areas, overall culture is largely influenced by national values.

Whether it’s political beliefs or family values, these things cannot be easily avoided simply by moving to a different state. And while there may be some improvements in aligning with your values, it’s important to acknowledge that they will still exist on a larger scale.

4. Changing Dynamics

As more people move to Florida and Texas, the political and social dynamics of these states may change. This can negatively impact the quality of life that originally attracted you to these areas.

Many Californians have moved to Idaho for a lower cost of living, moving from what is usually a blue state to a typically red state. This hasn’t made a significant enough difference to tip the scales from Republican to Democrat, but as 270 to Win reports, the percentage of Democrat votes has only increased since 2000, falling behind only once in 2016. While this may not have made a national difference, it certainly reflects a cultural shift that can be felt in communities.

Put simply, as more people from high-tax states move in, they often bring their political preferences with them. This could result in changes that go against the values the state’s population used to reflect.

5. Overpriced Assets

These states have a history of cyclical markets that can lead to inflated housing prices. While it may seem like a great investment opportunity at first, these highs are often followed by significant lows. This means if you stick with your property and decide to sell after realizing the area isn’t for you, you may find yourself at a huge loss.

As more people flock to these popular areas, competition for housing increases and drives up prices. This can make it challenging for many individuals and families to find affordable homes within their budget.

Then Where Should I Move?

While the tax benefits in Florida and Texas are more well-known, many European countries now offer attractive tax incentives for American citizens, like Foreign Earned Income Exclusions (FEIE). Several European countries also have a lower personal income tax rate than the US on top of healthcare savings, including Switzerland, Croatia, and Norway. This means that by moving overseas, one could potentially reduce their taxes legally while also enjoying other benefits such as a lower cost of living and better quality of life.

There are also certain limitations and restrictions placed on Americans living in the US that may not exist in other countries, like healthcare costs and education expenses, which can add up significantly over time.

Many people choosing to move feel that their freedoms and values are being eroded in the United States. So why stay? You should find a place that aligns with your current beliefs and values, rather than staying rooted in nostalgia for what once was.

Another reason why people are choosing to stay in the US is the misguided notion of staying close to family. A lot of foreign countries can actually be closer to your family in your home state in the US, like Mexico and Canada. This can also be a great opportunity for you to bring your family along and explore new cultures together.

Wherever you decide to move, a travel itinerary app can be helpful in automatically keeping tabs on your movements between countries and states to comply with tax and immigration requirements. Flamingo is a travel app that does just that, which is especially handy when your tax advisor or immigration attorney asks you to provide proof of your physical presence in a state or country. With report generation capabilities, Flamingo will make the whole moving process a breeze from start to finish.

Don’t Listen To Everyone Else - Make The Right Choice For You

This article is a great baseline for decision-making, but the choice of the best place to move is very specific to you. If you need some extra help, consider these questions:

◾ Are you prepared for a massive lifestyle change? Are you ok taking things slow, and embracing beach or country living?
◾ Is money your main or only motivation? Have you considered all the costs beyond taxes and surface-level monetary concerns?
◾ Are political issues so dire where you are? Will you be able to find the community you’re searching for in Florida or Texas? Or could you make more change where you are, or in another country?
◾ Would you stay in either state if it didn’t live up to your expectations? What about if the community changed in a few short years?
◾ Have you considered moving anywhere else, perhaps outside the country? What is tying you to the US?

If Florida or Texas is still the best option for you after answering these questions, we wish you the best of luck in this next chapter of your life. But if you have some doubts, make sure you do all your research and come to your own conclusions about what state or country is best for you. Remember - this is where you’re going to have to live each day. Make sure it feels like home!