DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Washington state millionaires are increasingly looking toward Florida real estate as a major change to the Pacific Northwest tax landscape approaches. Luxury property specialist Margit Brandt says taxes are the first issue driving interest among wealthy residents.

“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,” Brandt 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 applies a tiered capital gains tax. The first $1 million in taxable Washington capital gains faces a 7% rate, while amounts above $1 million are subject to a 9.9% rate.

Real estate is exempt from that capital gains tax. Even so, Brandt described Florida’s overall tax environment as a powerful draw for wealthy Washington residents considering a move.

The Democratic controlled Washington Legislature passed a separate 9.9% levy on annual adjusted gross income above the law’s $1 million threshold. Gov. Bob Ferguson signed the measure.

The income levy is scheduled to take effect on Jan. 1, 2028, with initial returns due in April 2029. The legislation represents a substantial shift for Washington, which currently has no individual income tax.

The tax is already facing a court challenge focused on its constitutionality. Meanwhile, real estate insiders say the new law is influencing relocation decisions among some wealthy residents.

“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.”

Comprehensive data tracking millionaire migration following the new tax are not yet available. However, a recent business survey showed greater interest among respondents in moving away from Washington.

The Association of Washington Business, the state’s chamber of commerce and manufacturers association, found that 24% of respondents were considering relocating their businesses outside Washington. That was up from 17% in the previous quarter and nearly triple the rate recorded 16 months earlier.

The survey also found that 55% of business leaders were considering moving their personal residence to another state. In Spokane County, near the low tax Idaho border, that figure rose to 67%.

The movement is also reflected in prominent individual departures. Jesse Proudman, founder and CTO of privacy focused AI platform Venice.ai, told Fox News Digital in May that he was leaving Washington.

Proudman warned that a region once known as a “startup sanctuary” had become increasingly hostile to business leaders. His announcement added another public example of a business figure choosing to leave the Evergreen State.

Starbucks announced in April that it would invest $100 million to establish an additional support office in Nashville, Tennessee, which has no individual income tax. The company expects the office to have 2,000 support jobs during the next five years.

Starbucks said those jobs would include newly created positions, work brought in house and some teams moved from Seattle. South Florida, meanwhile, has attracted billionaires and corporate headquarters amid its tax advantages and growing finance and technology scene.

Brandt said the decisions go beyond balance sheets. She identified safety, culture and quality of life as leading considerations 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.

She also said Florida’s lack of a state estate tax and proximity to the Caribbean appeal 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 Senator 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.”

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.