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Real estate agent claims Florida has attracted Washington state’s millionaires due to ‘punitive tax environment’
Florida-based real estate agent Margit Brandt told Fox News Digital millionaires are seeking better quality of life in Florida.
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Washington state millionaires are increasingly eyeing Florida real estate to escape a changing tax landscape in the Pacific Northwest, according to a luxury real estate expert.
“I would say that the first thing is taxes. Income tax in Florida is 0%, and, in Washington state, it’s 9.9% as of January 2028,” Margit Brandt, a luxury property specialist, told Fox News Digital.
“Capital gains in Florida is also 0%, and, in Washington state, it’s 7%. I just think that they’ve created this really punitive tax environment that’s unappealing to the high-net-worth individuals who are the high earners in Washington state, and that’s been the biggest kind of feeder for our market here,” she added.
Washington’s capital gains tax is tiered, with the first $1 million in taxable Washington capital gains subject to a 7% rate and amounts above $1 million subject to a 9.9% rate. Real estate is exempt from the tax.
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Florida has emerged as one of the nation’s biggest winners in America’s migration boom, drawing residents and billions in income from across the country.(Jeffrey Greenberg/Universal Images Group/
The push comes after the Democratic-controlled Washington Legislature passed, and Gov. Bob Ferguson signed, a 9.9% levy on annual adjusted gross income above the law’s $1 million threshold. Set to take effect Jan. 1, 2028 — with initial returns due in April 2029 — the legislation marks a major change for a state that has no individual income tax.
The tax is already facing a court challenge over its constitutionality, while real estate insiders say the new law is influencing some wealthy residents’ relocation decisions.
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Washington state’s new income tax is facing legal challenges, and some claim it violates the state Constitution.(Joe Sohm/Visions of America/Universal Images Group
“We’ve seen actual deals — big deals — happen with high earners from Washington state,” Brandt said. “This is not hypothetical. These are closed transactions with people setting up a whole new life here in Florida.”
While comprehensive data tracking millionaire migration due to the new tax are not yet available, a recent business survey found increased interest among respondents in relocating.
A recent survey released by the Association of Washington Business (AWB), the state’s chamber of commerce and manufacturers association, found that 24% of respondents said they were considering moving their businesses out of Washington. That figure is up from 17% in the previous quarter and nearly triple the rate recorded 16 months ago.
Furthermore, 55% of surveyed business leaders said they are considering moving their personal residence to another state, a number that climbs to 67% in Spokane County, near the low-tax Idaho border.
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South Florida has drawn billionaires and corporate headquartersin recent years, buoyed by tax advantages and a booming finance and tech scene.(Eva Marie Uzcategui/Bloomberg/
The shift is mirrored in high-profile individual departures. Jesse Proudman, founder and CTO of privacy-focused AI platform Venice.ai, told Fox News Digital in May he was leaving the Evergreen State, warning that a region once known as a “startup sanctuary” has grown increasingly hostile to business leaders.
Similarly, coffee giant Starbucks announced in April it would invest $100 million to set up an additional support office in Nashville, Tennessee, a state with no individual income tax, where it expects to have 2,000 support jobs over the next five years. Starbucks said those jobs will include newly created positions, workers brought in-house and some teams moved from Seattle.
Beyond balance sheets, Brandt said safety, culture and quality of life are primary drivers for wealthy transplants moving to Florida and other states, including Texas and the Carolinas.
“If they’re looking at a $10 million house, a $20 million house, a $50 million house or a $100 million house, it’s more than just a house. It’s a whole new lifestyle,” Brandt said, adding that Florida’s lack of a state estate tax and its proximity to the Caribbean appeal heavily to multi-generational wealth.
“They want safety, security, good schools and to set up their financial future. Florida is just such an easy landing place, and I think we’re going to see way more of it in the coming years.”
A spokesperson for Sen. Patty Murray, D-Wash, told Fox News Digital: “This is an issue subject to initiative, currently on the ballot in our state. For that reason, I’m limited in what I can say on the issue.”
Fox News Digital also reached out to Sen. Maria Cantwell, D-Wash, as well as Washington state’s governor, Bob Ferguson.
Fox News Digital also reached out to State Sen. Jamie Pedersen, D-Seattle, the architect of the millionaire’s tax bill, for comment and to Seattle Mayor Katie Wilson.
