Washington millionaires flock to Florida as new high-income tax looms
Wealthy Washington residents are buying Florida homes to avoid a 9.9% income tax and a tiered capital-gains levy set for 2028.
Washington’s new millionaire tax, approved by the Democratic legislature and signed by Gov. Bob Ferguson, will impose a 9.9% rate on adjusted gross income over $1 million and a 7% rate on the first $1 million of capital gains, effective Jan. 1, 2028. Luxury real-estate experts report that Washington’s affluent buyers are purchasing Florida properties to escape the zero-tax environment there, which also lacks an estate tax.
Concrete transactions have already occurred, and a recent Association of Washington Business survey shows 55% of leaders considering moving their homes, with higher rates in Spokane County. Notable exits include Jesse Proudman of Venice.ai and Starbucks’ $100 million expansion in Nashville, Tennessee. While safety, lifestyle and school quality also attract buyers, the tax change is a primary driver of the migration trend.
Why it matters
The tax shift could reshape wealth distribution and real-estate markets across the Pacific Northwest and Florida.
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