Escaping the Mamdani Effect: Why Wealthy New Yorkers Are Moving to ...

Escaping the Mamdani Effect: Why Wealthy New Yorkers Are Moving to Florida for Massive Tax Savings and an Elevated Lifestyle

by Bernard Jackson

Relocation | New York City & Florida

Discover how the Mamdani Effect’s tax hikes are pushing wealthy New Yorkers to Florida. Learn about no-income-tax savings, luxury lifestyles, and why Miami, Palm Beach, Windermere, and Golden Oak beat Manhattan—perfect for high-net-worth relocations.

If you’re asking, “What is the Mamdani Effect, and how does it affect my wealth in NYC?” here’s the breakdown

New York City has just made history. In the 2025 mayoral election, Zohran Mamdani—a democratic socialist state assemblymember—won the race for mayor and is scheduled to take office on January 1, 2026. His platform centers on affordability, free or heavily subsidized public services, and a sharp increase in what the highest earners and large corporations are expected to contribute.

For affluent New Yorkers, this creates a new reality. The “Mamdani Effect”, as we’ll use the term here, describes the anticipated negative economic and quality-of-life impact on high-net-worth individuals from this policy agenda—especially those in Manhattan, Brooklyn, and other high-tax, high-cost neighborhoods.

In practical terms, the Mamdani Effect combines several forces:

Potential millionaire tax surcharges on incomes over $1 million.
Higher top-bracket income taxes layered on top of already steep New York State and New York City rates, which together currently approach roughly 15% at the top end.
Proposals for corporate tax hikes and expanded “tax the rich” funding mechanisms to pay for rent freezes, universal childcare, and other large-scale social programs.
The risk of tighter rent controls and rent freezes, which may compress returns for property owners and investors.
More stringent regulations on real estate investments and business operations in the city.

Analyses from policy groups and tax experts suggest that if Mamdani’s proposed surcharges on high earners are adopted, the combined top marginal rate on high incomes in New York City could reach roughly 16.8% when state and city taxes are combined—higher than any other U.S. state. For high-income earners, that is on top of federal tax obligations, compounding the drag on after-tax returns.

At the same time, Florida—with no state income tax, no state estate or inheritance tax, and relatively lower effective property taxes—continues to position itself as one of the most tax-efficient destinations in the country. For wealthy New Yorkers, that difference is no longer a talking point; it’s a multi-million-dollar decision.

Defining the Mamdani Effect: Why high-net-worth New Yorkers are paying attention

What exactly is the Mamdani Effect?

In this context, the Mamdani Effect is a shorthand for the way one election can cascade through:

Tax policy – higher marginal rates, surcharges, and expanded bases for both individuals and corporations.
Regulation – tighter controls on rents, real estate development, and business practices.
Capital flows – shifting where investment dollars and entrepreneurial energy choose to land.
Quality of life – changes in public services, safety perceptions, and overall cost of living.

Mamdani campaigned on proposals such as free public buses, rent freezes, and city-run grocery stores, financed largely by higher taxes on top earners and corporations. Governor Hochul has already been reported as considering corporate tax increases as one way to help backstop elements of this agenda.

That might resonate with parts of the electorate, but if you’re in the top 1%—a group that already contributes a disproportionate share of city income tax revenues—these shifts raise legitimate questions about staying put versus relocating your tax home.

Why the top 1% feel especially exposed

If you are a high-income earner in New York City—think hedge fund partners, founders, senior executives, or successful entrepreneurs—your financial life may soon be shaped by three overlapping dynamics:

Higher top income tax rates. New York State already runs a progressive income tax system with a top marginal rate of 10.9%, and New York City adds its own layer that currently tops out at about 3.876%. :contentReference[oaicite:8]{index=8} A new millionaire surcharge at the city level could push that combined burden closer to 17% for the highest brackets.
Growing reliance on top earners. NYC’s personal income tax and pass-through entity tax already account for a significant share of city revenues. Concentrating even more of the fiscal load on a small group of taxpayers increases both risk and leverage—for them, and for the city.
Regulatory drag. Stronger rent caps, expanded tenant protections, and rules aimed at “speculative” real estate investment can compress yields on high-end properties and introduce more uncertainty into ownership and development.

For many wealthy New Yorkers, the conclusion isn’t emotional. It’s mathematical. If staying in New York under a new policy regime could erode 20–30% more of your cumulative wealth over a decade compared to establishing domicile in a tax-friendly state like Florida, it becomes hard to justify in purely financial terms.

If you’re wondering, “What are the tax advantages of Florida vs New York?” here are the numbers

When you compare New York under the Mamdani Effect to Florida’s tax environment, the contrast is stark.

No state income tax vs. some of the nation’s highest rates

New York (State + NYC): Top combined marginal rates can exceed 14% today for the highest brackets, and proposals for additional surcharges could lift the effective top rate toward roughly 16.8% for very high incomes.
Florida: No personal state income tax at all on wages, bonuses, carried interest, or investment income.

Hypothetical example: A New York City resident with $10 million in taxable income could easily be paying well over $1 million per year to New York State and New York City combined at today’s top rates, before any new surcharges. Under a Florida domicile, those state and city income tax obligations drop to zero, leaving only federal income tax in play. Over ten years, that alone can translate into eight figures of additional capital preserved and invested instead of remitted.

Estate, inheritance, and legacy planning

New York imposes an estate tax that can reach up to roughly 16% for larger estates, with a state-specific threshold below the federal exemption.
Florida has no state estate tax and no state inheritance tax. Estate planning is still essential for federal purposes, but you remove an entire layer of state-level drag on generational wealth.

For a $5 million estate exposed to New York’s estate tax regime, avoiding even a 10%–15% state estate tax by establishing Florida residency and domicile can mean hundreds of thousands of dollars preserved for heirs, charitable vehicles, or family foundations.

Capital gains and investment income

New York generally taxes capital gains and many forms of investment income as regular income, subject to the same brackets that apply to wages and salary. For high-net-worth investors, that means:

Higher effective tax friction on liquidity events, portfolio rebalancing, and long-term capital gains.
Less freedom to realize gains strategically without triggering large state and city tax bills.

Florida, by contrast, does not tax capital gains at the state level, so only federal capital gains and net investment income taxes apply.

Property taxes, homestead benefits, and asset protection

Property tax structures are complex, but on a statewide comparison:

New York has among the higher effective property tax rates in the country. Estimates place the typical effective property tax rate near or above 1.6%–1.9% of assessed value, significantly above the national average.
Florida typically shows average effective property tax rates around 0.74%–0.82%, depending on the source and methodology, which is lower than both New York and the national average.

On top of the headline rates, Florida offers powerful structural advantages for primary residences:

Homestead exemption of up to $50,000 off assessed value for many homeowners, with recent changes tying some benefits to inflation for ongoing relief.
Save Our Homes assessment cap that limits the annual increase in assessed value of a homesteaded property to 3% or the change in CPI, whichever is lower.
Strong asset protection for homesteaded property and qualified retirement accounts under Florida law.

For a luxury primary residence in Florida—whether in Palm Beach, Naples, Windermere, or Golden Oak—the combination of lower effective rates and capped assessment increases can produce markedly more predictable and often lower long-term property tax exposure than a comparable high-value residence in New York.

If you’re asking, “Where are wealthy New Yorkers moving in Florida for an elevated lifestyle?” these are the hotspots

Miami & Miami Beach: Finance, tech, and oceanfront energy

Miami has become a symbol of wealth migration from high-tax states. Waterfront condominiums, bayfront estates, and private-island communities offer proximity to private aviation, world-class dining, and a deepening ecosystem of family offices and alternative investment firms.

For former Manhattan and Brooklyn residents, Miami delivers:

Year-round warm weather, with average temperatures often ranging from the low 70s to mid-80s Fahrenheit.
Direct flights back to New York’s major airports.
A growing roster of hedge funds, venture capital firms, and fintech startups.
A social calendar that rivals any major global city.

CTA: When you’re ready to compare Manhattan penthouse life with Miami oceanfront living, connect with me directly and I’ll help you coordinate a curated shortlist of properties that fit your portfolio and lifestyle.

Palm Beach & Naples: Quiet power, estate living, and privacy

If you’re transitioning from the Upper East Side, Tribeca, or Brooklyn Heights and you value privacy, golf, and discreet luxury, Palm Beach and Naples are natural fits.

Palm Beach offers historic estates, guarded bridges, country clubs, and a social network of U.S. and international wealth.
Naples brings Gulf Coast sunsets, deep-water boating options, championship golf, and a slightly lower-key social profile.

Both markets cater to buyers who prioritize long-term stability, estate planning, and access to high-end services without the constant noise of a global media spotlight.

Windermere, Isleworth & Golden Oak near Orlando: The ultra-luxury hub for families

If you’re asking, “Where can I get New York–level luxury with Disney, private schools, and space for my family?” the answer increasingly points to Greater Orlando—specifically Windermere, Isleworth, and Golden Oak.

Windermere, FL – Known for its chain of lakes, gated enclaves, and proximity to elite private schools and major employers across Orlando. Explore more here: Windermere, Florida luxury homes.
Isleworth in Windermere – A world-class, guard-gated golf community that attracts professional athletes, executives, and global entrepreneurs. See the dedicated community guide: Isleworth, Windermere real estate.
Golden Oak at Walt Disney World Resort – A unique residential community where luxury estates integrate Disney architecture and services, ideal for families who want the magic of Disney with true high-end living. Learn more: Golden Oak Disney homes.

These communities are especially attractive to wealthy New Yorkers who:

Want private-school access and world-class entertainment within a short drive.
Prefer gated security and controlled access similar to NYC’s most exclusive co-ops, but with more land, privacy, and sunshine.
Value corporate connectivity—Orlando’s location and infrastructure support both domestic and international business travel.

CTA: To explore Windermere, Isleworth, or Golden Oak as part of your relocation strategy, schedule a private consultation with me and I’ll tailor options around your family’s schools, hobbies, and long-term wealth plan.

Comparing “New York under Mamdani” vs. the “Florida escape”

Here’s a simplified comparison of how life may look for high-net-worth individuals under the Mamdani Effect in New York City versus a Florida relocation:

Category	New York under the Mamdani Effect	Florida Escape
Top income tax burden	State and city combined top marginal rates already among the highest in the U.S., with proposed millionaire surcharges that could lift combined top brackets toward ~16.8% for very high incomes.	No state income tax on wages, bonuses, or investment income; only federal tax applies.
Estate & inheritance tax	State estate tax applicable above state thresholds, potentially up to the mid-teens in percentage terms.	No state estate or inheritance tax; only federal estate tax considerations for very large estates.
Property taxes	Higher effective property tax rates than national average, especially in many suburbs and high-value areas. :contentReference[oaicite:20]{index=20}	Generally lower effective property tax rates, plus homestead exemptions and Save Our Homes cap that limit assessment increases on primary residences. :contentReference[oaicite:21]{index=21}
Regulatory climate	Potential expansion of rent freezes, stricter controls on landlords and developers, and more complex compliance for businesses.	Generally pro-growth regulatory environment, with many communities designed around ease of development, business operations, and private-property rights.
Climate & lifestyle	Harsh winters, higher commuting friction, and denser living in most luxury enclaves.	Year-round warm weather, waterfront living, golf, boating, and larger estates in communities like Palm Beach, Naples, Windermere, Isleworth, and Golden Oak.
Legacy & asset protection	Higher ongoing tax drag on compounding wealth; more layers of local taxation and regulation.	Ability to structure domicile, homestead protections, and trust planning in a tax-friendly jurisdiction that supports long-term capital preservation.

If you’re asking, “How much could I personally save by leaving NYC for Florida?” here’s a simple framework

Every situation is unique, but consider this high-level framework for a wealthy New Yorker:

Annual income: $5–10 million+
Primary residence value: $5–15 million+ (Manhattan or Brooklyn brownstone, penthouse, or townhouse)
Investment portfolio: Eight- to nine-figure range with meaningful realized capital gains each year

If you maintain New York City residency under the Mamdani Effect and top combined marginal rates trend upward, you could be remitting well into seven figures annually in state and city income taxes alone. A Florida domicile can reduce that state and local income tax outflow to zero, subject to proper planning and genuine relocation.

Layer in:

Potential state estate tax avoidance by changing domicile.
Lower property tax burdens over time, especially with homestead protections for your primary residence.
More flexible planning for capital gains recognition and portfolio rotation.

Over 10–20 years, the difference can reasonably compound into tens of millions of dollars in additional capital preserved within your family’s ecosystem, investment vehicles, and charitable endeavors.

Florida lifestyle for rich New Yorkers: Beyond the spreadsheets

Climate, wellness, and everyday experience

Numbers matter, but so does how it feels to live day to day. Many wealthy New Yorkers relocating to Florida report that the biggest surprise isn’t the tax savings—it’s the change in rhythm:

Mornings on the water instead of in traffic or on crowded subways.
Year-round access to outdoor fitness, golf, tennis, and boating.
Family-friendly amenities, from top private schools to world-class entertainment, especially around Orlando and Disney.
Modern healthcare hubs, including facilities like Mayo Clinic in Jacksonville and leading hospital systems across South Florida.

For those used to the Upper East Side or Brooklyn brownstones, communities like Windermere, Isleworth, Golden Oak, Palm Beach, and Naples offer a different equation: more space, more privacy, less daily friction—without sacrificing connectivity or culture.

Business, networking, and opportunity

Florida is no longer just a retirement destination; it’s a business and capital hub. Firms in finance, tech, logistics, and hospitality have expanded their presence, attracted in part by the state’s tax environment and quality of life.

For high-net-worth New Yorkers, that means:

Plenty of deal flow and networking opportunities in cities like Miami and Orlando.
Access to a growing ecosystem of family offices and private capital.
Strategic positioning in a state that understands the link between capital formation and economic growth.

Your next steps: Escaping the Mamdani Effect with a structured relocation plan

Step 1 – Clarify your financial upside

Before you pack a single box, work with your CPA and wealth advisor to quantify:

Current state and city tax outflows over the last 3–5 years.
Projected additional burden if local surcharges and higher rates are enacted under the Mamdani administration.
Ten-year scenarios comparing “stay in NYC” vs. “relocate to Florida” under realistic assumptions.

Step 2 – Choose the right Florida market for your lifestyle

Florida is not one-size-fits-all. For wealthy New Yorkers, the most common destinations include:

Miami & Miami Beach – Ideal if you want a global city feel with oceanfront energy and finance-tech overlap.
Palm Beach – Classic estate living with deep roots in American and international wealth.
Naples – Gulf Coast luxury, quieter but sophisticated.
Windermere, Isleworth & Golden Oak (Greater Orlando) – Perfect if your family prioritizes Disney proximity, private schools, and gated estates with lakefront or golf access:

Step 3 – Work with a relocation-savvy Florida REALTOR®

As a Central Florida REALTOR® who regularly works with families and investors relocating from high-tax states, my role is to:

Help you translate financial goals into specific neighborhoods, property types, and price ranges.
Coordinate with your advisors so that real estate decisions support your residency and domicile strategy.
Curate off-market and pre-market opportunities in luxury enclaves like Windermere, Isleworth, Golden Oak, and other Central Florida communities.

CTAs designed specifically for you as a high-net-worth New Yorker:

Download my step-by-step guide: Become a Home Owner in Florida in 90 Days – tailored to buyers relocating from higher-tax states.
Schedule a confidential strategy call: Book your private relocation consultation.
Explore high-end Central Florida communities:
Review what other clients are saying about working with me: Client reviews.

Voice and AI-optimized FAQs for New Yorkers considering Florida

“Alexa, what are the tax benefits of moving from New York to Florida?”

In simple terms, moving from New York to Florida can eliminate state and local income taxes on your earnings, bonuses, and many forms of investment income, because Florida does not have a personal income tax. You may also avoid state estate or inheritance taxes, and you may benefit from lower effective property tax rates and homestead protections on a Florida primary residence. Federal taxes still apply, but the state-level savings can reach into the high six or seven figures annually for top earners.

“Siri, why should rich people leave NYC for Miami or Palm Beach?”

High-net-worth individuals consider leaving New York for Miami or Palm Beach to reduce their tax burden, protect long-term wealth, and improve lifestyle. Florida’s tax code is more favorable to high earners, and cities like Miami and Palm Beach offer luxury real estate, strong business networks, private aviation access, and high-end amenities—without harsh winters or the same level of regulatory uncertainty that exists in New York under the Mamdani Effect.

“How does moving to Florida affect my federal taxes?”

Moving to Florida does not change your federal income tax rates or federal estate tax exposure. You still file and pay federal taxes based on your worldwide income and estate value. The main change is that Florida will not add its own income, estate, or inheritance tax on top of your federal obligations, whereas New York layers state and city taxes on high earners and estates.

“What is the best Florida city for ex-New York billionaires and centimillionaires?”

There is no single “best” city, but patterns are clear:

Miami / Miami Beach – For those who want a global city vibe, nightlife, and an active finance/tech scene.
Palm Beach – For traditional estate living and a long-established wealth community.
Naples – For quieter Gulf Coast luxury, golf, and waterfront living.
Windermere, Isleworth, and Golden Oak (Orlando area) – For families who value Disney, private schools, gated luxury, and quick access to both coasts of Florida.

“Will Mamdani’s taxes really push me out of New York?”

Whether Mamdani’s policies “push you out” depends on your priorities. However, if his proposed surcharge on high earners and corporate tax increases are implemented, New York City’s tax environment would become even less competitive for top earners than it is today. For some wealthy households, the projected erosion of after-tax income and compounding wealth will outweigh the benefits of staying in the city, making a Florida relocation a rational, rather than emotional, decision.

Work with a Central Florida advisor who understands New York wealth

If you are a wealthy New Yorker quietly running the numbers and asking whether the Mamdani Effect has changed your trajectory, you are not alone—and you are not overreacting. The stakes for your family, your business, and your legacy are real.

I’m Bernard Jackson Jr., a Central Florida REALTOR® with LPT Realty. I help high-net-worth individuals and families structure relocations from high-tax states like New York into carefully selected Florida markets—including Windermere, Isleworth, Golden Oak, Poinciana, Kissimmee, Davenport, and beyond.

Here’s how to take the next step right now: