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Attom, a leading real estate data company, has released a report highlighting the increasing property taxes in the United States, focusing on the southern regions. The findings reveal that property taxes in the South rose by an average of 5.8% last year, significantly higher than the national average of 3.0% and the 0.7% increase observed in the Northeast. This trend has implications for retirees and individuals planning their retirement in states like Florida.
The report points out that Miami, a popular destination for retirees and Fortune 500 employees seeking a retirement haven, experienced a substantial 12.6% increase in single-family property taxes between 2021 and 2022. This represents one of the highest single-city increases in the country during a year when property taxes nationwide rose twice as fast as the preceding 12 months. However, despite the rising property taxes, Miami's median home prices remain lower than those in New York, and the absence of a state income tax continues to attract newcomers to Florida.
It's important to note that escalating property taxes are not limited to Florida. Pittsburgh witnessed an alarming annual increase of 59.6% in property taxes, earning the city the unfortunate distinction of having the highest municipal tax increases in the country. On the other hand, cities in Arizona, like Phoenix and Tucson, saw their property tax bills decrease by 2.6% and 1.4%, respectively, making them among the locations with the steepest declines in property taxes in the past year.
Florida's unique property tax system, established by the Save Our Homes constitutional amendment in the mid-1990s, places most of the tax burden on newcomers and first-time homebuyers. Existing homeowners benefit from a 3% annual restriction on property tax increases, which can be transferred if they decide to purchase another residence within the state. While this tax system may be favorable for established Floridians, it often comes as an unwelcome surprise to new movers who rely on their current tax invoices to estimate their living expenses. In some cases, retirees on fixed incomes have been forced to leave the state due to the inability to afford the higher taxes.
Though property taxes in some southern cities, like Phoenix and Tucson, have decreased despite the current trend, individuals planning to retire in Miami must be aware of the rising property taxes and factor them into their plans accordingly.
Considering the overall landscape, it's crucial to understand that property taxes are just one factor among many when selecting a retirement location. The quality of healthcare, availability of outdoor recreation, and cost of living should also be considered.
In conclusion, the escalating property taxes in the southern regions of the United States, particularly in Florida and Miami, have significant implications for retirees and those planning their retirement. Navigating these tax considerations carefully is vital to ensure a comfortable and secure future. Understanding the impact of property taxes and other financial factors on retirement planning. To explore your options and receive personalized advice, schedule a free consultation with our experts today.
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Source: https://www.businessinsider.com/new-yorkers-fled-to-miami-see-increase-property-taxes-2023-4
The foregoing information has been obtained from sources considered to be reliable. Still, we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of The Lynch Retirement Investment Group and not necessarily those of Raymond James.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
 Lynch Retirement Investment Group2016, 2017, 2018, and 2019 |
 John M. Lynch, CIMA®, CPWA® |
John M. Lynch, CIMA®, CPWA® Managing Director – LRIG
Financial Advisor– RJFS, of The Lynch Retirement Investment Group, LLC.
Was named on the 2021 Forbes Best-In-State Wealth Advisor List.
John M. Lynch, CIMA®, CPWA® |
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Andrew Fentress, CFP® |
Adam Tobin, CFP®, CRPC |
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