By Brian French | Miami Business News | October 6, 2026
Quick Answer: Tech companies relocating to Miami get no state personal income tax, a 5.5% corporate rate and no sales tax on office rent. Florida’s cash incentives are thinner than most guides claim. The real draw is personal: California taxes top earners at 13.3% and may add a one-time 5% billionaire tax.
Key Takeaways
- Florida’s biggest “incentive” is structural. There is no personal income tax, so a founder’s salary, capital gains and exit proceeds go untaxed at the state level.
- Florida’s flagship cash program for new jobs, the Qualified Target Industry (QTI) refund, is gone. Many relocation guides still list it.
- California’s Proposition 40 billionaire tax goes to voters on November 3. It is already reshaping where founders live.
- Miami is not cheap. Prime office rents and homeowners insurance run at or above San Francisco and New York levels.
- Florida voters decide a major homestead property tax cut on the same November 3 ballot, with a residency deadline that matters to newcomers.
The Twist: Miami’s Best Incentive Isn’t an Incentive
Most “move your company to Florida” articles lead with grant programs. That is outdated. Governor DeSantis signed H.B. 5 on May 31, 2023, repealing several programs, including the qualified target industry tax refund, effective July 1, 2023. That program had paid $3,000 per new job, or $6,000 in an enterprise zone or rural county.
Florida no longer pays companies much to come. It is betting that its tax structure does the work instead. For founders with large equity stakes, that bet is paying off.
Florida’s Corporate and Personal Tax Structure
Personal income tax: none. Florida does not tax residents on wages, Social Security, retirement income, capital gains or investment income.
Corporate income tax: 5.5%, with a cushion. The first $50,000 of net income is exempt before the tax is calculated. Only C corporations and LLCs that elect corporate treatment pay it; pass-through LLCs owe no Florida income tax.
2026 federal conformity. Florida now follows the Internal Revenue Code as of January 1, 2026, keeps the 5.5% rate, and expects the change to be revenue neutral. The state decoupled from five federal provisions, so affected companies should plan for adjustments and separate state and federal records on asset basis and carryforwards.
No more tax on office rent. Effective October 1, 2025, Florida stopped charging sales tax and local surtax on commercial lease payments. Florida had been the only state charging that tax.
Overall ranking. Florida ranks 5th on the Tax Foundation’s 2026 State Tax Competitiveness Index, though it lets corporations claim only 15% of the first-year equipment expensing allowed federally.
Top Tax Rates Compared
| Tax | Florida | California | New York City |
|---|---|---|---|
| Top personal income tax | 0% | 13.3% | 14.776% (state + city) |
| Corporate income tax | 5.5% | 8.84% | 7.25% state + city tax |
| Sales tax on office rent | None | None | Varies |
| Pending wealth tax | None | Prop 40 (Nov. 3) | None |
California’s 13.3% rate applies to income over $1 million, and its corporate tax is a flat 8.84%. New York State and City’s combined top marginal rate of 14.776% is the highest in the nation. California also withholds 1.3% State Disability Insurance on all wages in 2026, with no cap.
What a $10 Million Exit Costs in Each State
This is where the relocation decision actually gets made. Consider a founder who sells $10 million of stock in 2026.
| Scenario | Estimated state/local tax |
|---|---|
| Florida resident | $0 |
| California resident (single filer) | About $1.3 million |
| New York City resident | About $1.4 million |
Illustrative estimates using 2026 top brackets; actual liability depends on deductions, filing status and timing.
California taxes capital gains as ordinary income. Under the 2026 schedule, income over $1 million is taxed at $104,989 plus 13.3% of the excess, which puts a $10 million gain near $1.3 million in state tax. A grant program worth a few thousand dollars per employee cannot compete with that number.
Prop 40: The Tax That Moved Billionaires Before the Vote
Proposition 40 would impose a one-time 5% tax on the net worth of California residents worth over $1 billion, and it will be on the November 3, 2026 ballot. The cutoff is residency on January 1, 2026, so billionaires who stayed past that date would owe the tax if it passes. The tax would be paid in 1% annual installments over five years.
The early departures happened before the deadline. Sergey Brin, Larry Page, Peter Thiel, Don Hankey, Travis Kalanick and Steven Spielberg all left before the January 1 cutoff. Brin had put $102 million into the campaign to defeat the tax as of mid-August.
The outcome is uncertain. A September PPIC poll found 52% of likely voters in favor and 46% opposed, a statistical tie. A UC Berkeley Citrin Center poll showed support among registered voters at just 45%. Two countermeasures, Propositions 41 and 42, would cancel Prop 40 if either wins more votes than it does.
Leaving is also no clean escape. Residency attorneys say departing California for tax reasons is difficult, and the measure directs the Franchise Tax Board to examine every return filed under it.
New York Held Its Rates, For Now
New York’s high earners dodged a hike this year. The final state budget did not raise personal or corporate income taxes, despite a push from Mayor Zohran Mamdani and both legislative chambers, but it extended the 7.25% corporate rate through 2029. The only new city levy is a pied-à-terre tax on second homes worth $5 million or more.
The pressure is not over. City budget gaps and the mayor’s affordability agenda may push him back to Albany for taxes next year. For a founder weighing Manhattan versus Brickell, that recurring fight is its own risk factor.
Florida’s Actual Incentive Menu for Tech Companies
| Program | What it offers | Best fit |
|---|---|---|
| Capital Investment Tax Credit | Annual corporate tax credit, up to 20 years | Large HQ or IT projects |
| High Impact Performance Incentive | Negotiated grant, paid in two halves | Major high-impact projects |
| R&D Tax Credit | 10% of Florida research spend above base | Growing engineering teams |
| Brownfield Bonus | Up to $2,500 per job | Sites in brownfield areas |
| QTI Tax Refund | Repealed in 2023 | Not available |
The Capital Investment Tax Credit runs up to 20 years against corporate income tax, and eligible projects include corporate headquarters and information technology. HIPI grantees receive half the award when operations begin and the rest once job and investment goals are met.
The R&D credit is small statewide. It equals 10% of the amount a company’s Florida qualified research expenses exceed a statutory base. A 2026 bill to raise the annual statewide cap from $9 million to $50 million did not pass. The Brownfield bonus is open even to companies outside targeted industries.
One rule catches relocators off guard. QTI-style programs and CITC require pre-approval before the hiring or investment begins. Sign the lease first and you may forfeit the credit.
The Cost Ledger: Where Miami Is Not Cheap
Office Rent
| Market | Avg. office asking rent (Q2 2026) |
|---|---|
| Miami-Dade | $56.75/sq ft |
| San Francisco | $58.25/sq ft |
| New York | $64.85/sq ft |
CoStar data shows Miami-Dade’s average asking rent lagging New York and San Francisco. Prime space is another story. Brickell office asking rents of $79 per square foot now exceed Manhattan’s $72, though the broader Miami market remains cheaper at $60. In June, Peter Thiel’s family office signed an 18,158-square-foot lease at 830 Brickell for $250 per square foot, the highest in Miami-Dade history.
Homeowners Insurance
This is the line item that surprises relocating executives. Florida’s statewide average premium reached about $8,458 in 2026, according to Insurify, compared with a national average of $2,151 per year. In Miami, the average runs $15,396 a year for $300,000 of dwelling coverage.
The trend is finally improving. Florida’s regulator reports average premiums fell in 51 of 67 counties between January and July 2026. Citizens Property Insurance filed a 13.9% rate reduction for Miami-Dade.
Amendment 3: A Deadline New Residents Should Know
The same day Californians vote on Prop 40, Floridians vote on property taxes. The amendment would raise the $50,000 homestead exemption to $150,000 in 2027 and $250,000 in 2028, excluding school district levies, and needs at least 60% support. It would also cut the cap on annual assessment increases for non-homestead property from 10% to 5%, which matters to companies that own their buildings.
Timing is the catch for newcomers. The Senate framed the full relief around homeowners who are Florida residents on or before December 31, 2026. Newer homeowners would generally start with the existing exemption and wait until their fifth year for the larger one.
Who Is Actually Moving
The 2026 wave looks different from the pandemic-era surge. Four companies relocated their headquarters to South Florida in the first two months of 2026, including Palantir and Trinity Investments. Palantir announced its move from Denver to Miami on February 17. Quantum computing firm D-Wave moved its headquarters from California to the Boca Raton Innovation Campus.
The capital is following. Ken Griffin is starting construction on a 54-story Brickell tower with 1.3 million square feet of office space to house Citadel’s headquarters and other tenants.
Relocation Checklist for Founders
- Establish domicile early and document it. File a Florida Declaration of Domicile, change your driver’s license and voter registration, and move your primary home. Expect California to audit.
- Time the liquidity event after the move. State tax follows residency on the date of sale, so the calendar matters as much as the address.
- Choose the entity structure deliberately. Pass-through LLCs owe no Florida income tax; C corporations pay 5.5% above the first $50,000.
- Apply for incentives before you hire. CITC and HIPI require pre-approval.
- Budget for rent and insurance honestly. Brickell office space and coastal home insurance can offset part of the tax savings for mid-level employees.
- Watch November 3. Prop 40 and Florida Amendment 3 are both decided that day.
This article is general information, not tax or legal advice. Relocation tax outcomes depend on specific facts; consult a qualified tax attorney or CPA.
Brian’s Take
I spent years as a money manager, and the math I watched clients run always came down to one number: the after-tax value of the exit. Grants and credits were rounding errors. That is still true, and Florida seems to know it. It let QTI die and is competing on structure instead.
But the savings are lopsided. For a founder selling $10 million of stock, Florida is worth more than a million dollars. For a $150,000 engineer, the state income tax savings can be largely eaten by a Miami insurance bill and Brickell-level rents. That is why the smartest relocations I see move the executive suite and the cap table first, then build hiring hubs in more affordable Florida metros.
The November 3 double ballot is worth watching closely. If Prop 40 passes, the flow of California wealth to South Florida accelerates. If Florida’s Amendment 3 passes, newcomers who arrive after 2026 get a smaller property tax break for five years. Timing matters on both coasts.
Frequently Asked Questions
What tax incentives do tech companies get for relocating to Miami?
The main advantages are no state personal income tax, a 5.5% corporate rate with a $50,000 exemption, and no sales tax on commercial rent. Program-based incentives include the Capital Investment Tax Credit, HIPI grants and a modest R&D credit.
Is Florida’s QTI tax refund still available?
No. The Qualified Target Industry program was repealed effective July 1, 2023. Existing agreements continue, but new projects cannot apply.
Does Florida have a corporate income tax?
Yes. The rate is 5.5% and applies to C corporations and LLCs taxed as corporations. The first $50,000 of net income is exempt.
Does moving to Florida avoid California’s billionaire tax?
Not if you were a California resident on January 1, 2026. Prop 40 uses that date to determine liability, and the tax only applies if voters approve it on November 3 and it outpolls two competing measures.
Is Miami cheaper than San Francisco for a tech company?
On taxes, yes. On average office rent, Miami-Dade is roughly comparable. Prime Brickell space now exceeds Manhattan, and homeowners insurance in Miami is several times the national average.
When will Florida vote on the homestead property tax cut?
November 3, 2026. Amendment 3 needs at least 60% approval to take effect.
Sources and Further Reading
- Ballotpedia/Wikipedia – 2026 California Billionaire Tax Initiative: https://en.wikipedia.org/wiki/2026_California_billionaire_tax_initiative
- Bloomberg Tax – Billionaires Fleeing California to Hit Tax Officials’ Scrutiny: https://news.bloombergtax.com/daily-tax-report-state/billionaires-fleeing-california-to-hit-tax-officials-scrutiny
- CalMatters – Prop 40 Might Not Become Law Even If It Passes: https://calmatters.org/health/2026/09/california-wealth-tax-prop-40-41-42/
- CalMatters – New Poll Shows a Close Race on the Billionaire Tax: https://calmatters.org/newsletter/billionaire-tax-proposition-poll/
- Florida TaxWatch – 2026 Legislative Session Wrap-Up: https://floridataxwatch.org/2026-florida-legislative-session-wrap-up-special-session-edition/
- Hacker, Johnson & Smith – Florida Tax Credits for Business Growth 2026: https://hackerjohnson.com/florida-tax-credits-business-growth-2026/
- Wikipedia – Taxation in California: https://en.wikipedia.org/wiki/Taxation_in_California
- National Tax Tools – California Payroll Taxes 2026: https://nationaltaxtools.com/payroll/california/
- Citizens Budget Commission – Even Mamdani’s New York Needs Millionaires: https://cbcny.org/newsroom/even-mamdanis-new-york-needs-millionaires
- New York Focus – What’s in the 2026 State Budget: https://nysfocus.com/2026/05/29/new-york-final-state-budget-2026-funding-guide-hochul
- The Real Deal – Analysis of South Florida’s Office Leasing Market: https://therealdeal.com/miami/2026/09/01/analysis-of-south-floridas-office-leasing-market/
- MIAMI REALTORS – South Florida Office Rents Top New York: https://www.miamirealtors.com/2026/08/28/south-florida-office-rents-top-new-york-as-demand-surges/
- Mindspace – Miami Office Space Costs 2026: https://www.mindspace.me/blog/miami-office-space-costs/
- Insurify – Best Home Insurance in Miami (2026): https://insurify.com/homeowners-insurance/florida/miami/
- ValuePenguin – Average Cost of Homeowners Insurance (2026): https://www.valuepenguin.com/average-cost-of-homeowners-insurance
- CBS Miami – Florida Property Tax Cut Plan Heads to November Ballot: https://www.cbsnews.com/miami/news/florida-property-tax-cut-plan-november-ballot-desantis-homestead-exemption-2026/
- ClickOrlando – Florida’s Amendment 3: What Voters Need to Know: https://www.clickorlando.com/election-2026/2026/09/23/floridas-amendment-3-could-change-property-taxes-heres-what-voters-need-to-know/
- Florida Senate – Senate Passes $250,000 Property Tax Cut: https://www.flsenate.gov/PublishedContent/Offices/President/6_2_26_Senate_Passes_Historic_Property_Tax_Cut_for_Florida_Homeowners.pdf
- CNBC – Palantir Moving Its Headquarters From Denver to Miami: https://www.cnbc.com/2026/02/17/palantir-headquarters-miami-denver.html
- Bisnow – Corporate HQs Are Following the Billionaires to South Florida: https://www.bisnow.com/south-florida/news/office/ceos-companies-relocate-miami-office-space-133610
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