I get asked this question constantly. I operate at the top of the market in both New York City and South Florida. I've closed deals in both markets for the same clients. And my answer always surprises people:
Both. The answer is both — and here's why that's not just a broker's answer.
The False Choice Most People Are Making
Most people frame this as a lifestyle decision. New York for the energy, culture, career — Florida for the weather, the pace, the space. And that framing isn't wrong. But it's incomplete.
The more sophisticated way to think about this is as a tax optimization and lifestyle design question. When you understand the full picture, owning in both markets isn't a luxury — for the right client, it's one of the smartest wealth-building moves available to them.
The Florida Tax Advantage: The Numbers That Change the Conversation
Florida has no state income tax. Zero. That's written directly into the state constitution — it can't be changed without a constitutional amendment. No tax on wages, no tax on capital gains, no tax on dividends, no tax on retirement income.
For a New York City resident, you're currently paying:
• New York State income tax: up to 10.9% on the highest income brackets
• New York City income tax: an additional 3.08% to 3.876% on top of that
• Combined state + city rate for a top NYC earner: approaching 15%
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The Annual Math A household earning $500,000 in New York City and South Florida pays approximately $38,000-$40,000 more per year in state and city income taxes by maintaining NYC residency. That differential alone, over five years, could cover a meaningful down payment on a South Florida property. |
Florida also has no estate tax. New York imposes a state estate tax with an exemption of approximately $6.94 million — and a brutal 'cliff' provision where if your estate exceeds that threshold by more than 5%, the entire estate becomes taxable from dollar one. For high-net-worth families, the generational wealth implications are enormous.
The 183-Day Rule: How the Hybrid Model Actually Works
Here's where the strategy gets precise — and where a lot of people get it wrong.
New York State will consider you a resident for income tax purposes if you maintain a permanent place of abode in New York AND spend 184 or more days in New York during the tax year. The flip side: if you spend 183 days or fewer in New York — you can qualify as a Florida resident and eliminate New York State and City income tax.
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The hybrid model: own in NYC, establish legal domicile in Florida, spend 183 days or fewer in New York. You get the New York lifestyle when the weather is great — spring, fall, and as much summer as you want. You get the Florida lifestyle, the weather, the beach, and zero state income tax for the rest of the year. Best of both worlds, literally. |
This isn't a loophole — it's exactly how the law is structured. But New York State is aggressive about auditing people who claim Florida residency while maintaining NYC ties. To make this work, you need to do it properly:
• Establish a Florida home as your primary residence and claim the homestead exemption
• Get a Florida driver's license and register your vehicles in Florida
• Register to vote in Florida
• Update estate planning documents to reflect Florida as your state of residence
• Maintain meticulous documentation of your days in each state
• Move meaningful possessions, social affiliations, and professional relationships to Florida
When done correctly, the tax savings can be extraordinary. When done sloppily, New York State will find you — and the back taxes, interest, and penalties will cost more than the savings.
What Each Market Offers Right Now
New York City — Spring/Fall Living and Capital Preservation
Manhattan real estate has been essentially flat for ten years. That's not a bearish statement — it's the setup for the next cycle. Supply is constrained (around 5,700 active listings, down 10% year-over-year), global capital is returning from markets like Dubai and London that have become more complicated, and the combination of a dollar-denominated safe-haven asset with rule-of-law protection is increasingly rare globally.
NYC is where you park capital for long-term appreciation and where you live when the city is at its best — spring and fall are arguably the finest urban experience anywhere in the world.
South Florida — Weather-Driven Quality of Life and Tax Efficiency
South Florida offers a completely different proposition. Miami, Palm Beach, Fort Lauderdale — these markets have matured significantly. The infrastructure has caught up, the cultural scene has developed, and the financial and tech sectors have created a genuine professional ecosystem that didn't exist a decade ago.
More importantly: South Florida in winter is simply unbeatable. Weather is perfect. The outdoor lifestyle is real. And the tax savings you generate by establishing domicile there can fund a very comfortable life.
The Hybrid Portfolio Strategy
Here's how the smartest clients I work with think about this:
• Primary residence / legal domicile: South Florida. This is where you establish the 183-day rule, claim the homestead exemption, and eliminate New York state and city income tax.
• NYC property: Maintained as a non-primary residence. You can spend up to 183 days there per year — which is more than enough for NYC's best seasons. The property appreciates over time and continues to function as a world-class base.
• The math: The income tax savings from Florida domicile, particularly for high earners, frequently exceeds the carrying costs of maintaining the NYC property on a net basis.
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You don't have to choose between New York and Florida. You choose both — and you structure it correctly so that the tax savings in Florida partially fund the lifestyle in New York. That's not a dream. That's a financial strategy. |
I work in both markets. I understand both markets. And I've helped clients execute this strategy on both ends of the transaction. If this is a conversation that makes sense for your situation, it starts with getting the numbers right — and then finding the right assets in both places.
About Nile Lundgren
Nile Lundgren is the founder of The Lundgren Team at SERHANT., with over $500 million in career sales across New York City and South Florida. A cast member on Netflix's Owning Manhattan, Fox News contributor, adjunct professor at Baruch College, and nationally recognized speaker, Nile built his career from the ground up — starting with $200, a basement floor in Brooklyn, and a 300-person call list.
Buying or selling in NYC or South Florida? Connect with Nile and The Lundgren Team.
