For many high-net-worth families, the move to Naples is about more than the weather. Florida has no state income tax, no estate tax and no inheritance tax. For a large estate, the savings can reach into the millions.

 

But your former home state may not let you go easily. If you still own a home, a business or significant ties there, it may claim you never left. As the season begins, here's how to make your Florida move hold up.

 

Key takeaways

• Florida has no state income, estate or inheritance tax, but your former state may still claim you
• Twelve states and Washington, D.C. impose estate taxes, some with exemptions as low as $1 million
• High-net-worth movers are prime audit targets, and the burden of proof is often on you
• Real estate you keep in another state can be taxed there even after you change domicile
• Consistent, documented steps are what make a Florida move hold up

What's at stake: state estate taxes in 2026

 

The federal estate tax exemption is $15 million per person in 2026. Many states set their own exemption far lower:

 

State	2026 estate tax exemption
Oregon	$1 million
Massachusetts	$2 million
Minnesota	$3 million
Illinois	$4 million
New York	$7.35 million, with a "cliff"

 

New York's cliff is especially harsh. Once a taxable estate exceeds 105% of the exemption, the entire estate is taxed, not just the excess. Top state rates commonly reach 16%.

 

A family that has built $25 million in wealth could face a seven-figure state estate tax bill if the former home state still considers them domiciled there.

 

Why high-net-worth movers get audited

 

States with income and estate taxes actively audit wealthy former residents. Auditors look at where you spend your time, where your family and valuables are, where you do business and which home you treat as your main one.

 

Some states, including New York, can also treat you as a statutory resident for income tax if you keep a home there and spend more than 183 days in the state.

 

Steps that strengthen your Florida domicile

• File a Declaration of Domicile with the Collier County Clerk
• Claim the Florida homestead exemption by March 1
• Get a Florida driver's license, vehicle registration and voter registration
• Move "near and dear" items, such as art, heirlooms and pets, to Naples
• Update your will, trust and advance directives under Florida law
• Keep a detailed day-count log with calendar, travel and credit card records
• Shift professional relationships, club memberships and charitable ties to Florida

Learn more on our Florida Domicile page.

 

Don't forget out-of-state real estate

 

Even after you change domicile, many estate tax states can still tax real estate located within their borders. A $4 million summer home in Massachusetts could trigger Massachusetts estate tax on its own.

 

Depending on the state, holding that property in a properly structured LLC or trust, or planning lifetime gifts of it, may reduce this exposure. It also helps avoid ancillary probate in that state.

 

How a domicile audit works

 

A residency audit usually begins with a questionnaire after you file a part-year or nonresident tax return, or stop filing altogether. Auditors then ask for documents: calendars, phone records, credit card statements, E-ZPass records, utility bills and even veterinarian records.

 

In states like New York, auditors weigh five primary factors:

1. Home: How your Florida home compares with your former home in size, value and use
2. Active business involvement: Whether you still run or manage a business in the former state
3. Time: Where you actually spend your days, not just the count
4. Near and dear items: Where you keep art, heirlooms, jewelry, collections and pets
5. Family: Where your spouse and minor children live and attend school

In many states, you carry the burden of proving that you changed your domicile. New York, for example, requires clear and convincing evidence. A single inconsistency, like keeping a primary-residence property tax credit on your old home, can undermine an otherwise strong case.

 

A tale of two estates

 

Consider a married couple with a $20 million estate who split time between Manhattan and Naples.

• If New York is their domicile: Their estate is well above New York's cliff, so the entire estate is exposed to New York estate tax. The state tax bill could exceed $2 million, even though no federal estate tax may be due.
• If Florida is their domicile: Florida imposes no estate tax. New York could still tax their Manhattan apartment as New York real property, but not their investment accounts, business interests or other intangible assets.

The difference comes down to planning and documentation, not just where they spend the winter.

 

Watch the income tax on the way out

 

Changing domicile doesn't erase every tie to your former state. Many states can still tax income earned from sources within their borders, such as:

• Wages or deferred compensation earned while you lived there
• Rental income from property located there
• Gains from selling real estate located there
• In some cases, business income tied to operations there

If you're planning to sell a business or exercise stock options, timing the sale relative to your move matters. Selling shortly after arrival can draw scrutiny. Coordinate with your CPA before any major liquidity event.

 

Common mistakes that undermine a Florida move

• Keeping a homestead or primary-residence tax break on your former home
• Voting absentee in your former state
• Keeping your primary doctors, accountants and attorneys up north
• Leaving valuables in a safe deposit box in your former state
• Describing your old home as "home" in emails, club filings or insurance applications
• Spending the major holidays and milestone events in your former state every year

Frequently asked questions

 

Can my old state tax my estate after I move to Florida? Yes, if it can show you remained domiciled there. It may also tax real estate you still own in the state.

 

How many days do I need to spend in Florida? There's no single magic number for domicile. But spending more than 183 days in a state where you keep a home can trigger statutory residency for income tax in some states.

 

Does Florida have an estate or inheritance tax? No. Florida has no state estate, inheritance or income tax.

 

What is a Florida Declaration of Domicile? It's a sworn statement filed with the clerk of court in your Florida county stating that Florida is your permanent home. It's strong evidence of intent, but it works best alongside other consistent steps.

 

Can my former state tax the sale of my business after I move? Possibly. Some states tax gains tied to in-state operations or scrutinize sales that occur soon after a move. Plan the timing with your attorney and CPA.

 

Should I sell my home in my former state? Not necessarily. Many people keep a second home. What matters is that your Florida home is clearly your primary residence and your other ties shift to Florida.

 

Make your Florida move stand up to scrutiny

 

Board-certified attorney James Nici has helped high-net-worth families establish and defend Florida domicile for more than 30 years. Call Nici Law Firm at 239-449-6150 to review your plan.

 

This article is for general information and is not legal or tax advice.