Florida Taxes on RSUs and Stock Options: A Tech Employee's Guide

Miami has emerged as one of the fastest-growing tech and finance hubs in the country. Citadel and Citadel Securities relocated their headquarters from Chicago. Major crypto, fintech, and Latin American tech companies have planted flags in Brickell and Wynwood. Thousands of tech workers from Silicon Valley, Seattle, and New York have relocated to Tampa, Orlando, and South Florida — drawn largely by the same math that drives moves to Texas: Florida has no state income tax on RSU vests, wages, option exercises, or any other income.

A senior engineer vesting $400K of RSUs in Florida pays $0 state income tax on that income — compared to roughly $36,000–$53,000 in California, or $38,000–$54,000 in New York City. The advantage compounds: Florida also imposes no state capital gains tax, no state Alternative Minimum Tax on ISO exercises, and no state estate or inheritance tax.

The picture is not entirely simple. California and New York have nonresident sourcing rules that follow you after you move — equity income from grants made while you lived there can continue generating home-state tax obligations for years. Property taxes in Florida are lower than Texas but higher than California. And transaction costs on real estate include a documentary stamp tax unique to Florida. This guide covers all of it.

Florida's tax structure for tech employees

RSUs in Florida: federal-only at vest

At vest: no state withholding

When RSUs vest, the fair market value at vest date is ordinary income — taxed by the IRS at your marginal rate. Federal income tax is withheld at the 22% supplemental rate (which underwithholds for most tech employees above $190K total income, since higher brackets run to 32% and 37%). Social Security applies on the first $176,100 of combined wages and RSU income; Medicare at 1.45% on all compensation; Additional Medicare Tax at 0.9% on income above $200K single / $250K MFJ.

Florida adds nothing on top of this. No state income tax, no state supplemental withholding. Use the RSU after-tax calculator and enter $0 for state income tax — that is the correct number for Florida residents.

After vest: capital gains are federal-only

Your cost basis in vested shares equals FMV at vest. If you hold the shares and they appreciate, selling after 12+ months qualifies the gain for federal long-term capital gains rates (0%, 15%, or 20% depending on income, plus 3.8% NIIT). The 2026 federal LTCG thresholds: 15% bracket begins at $49,450 (single) / $98,900 (MFJ); 20% bracket begins at $545,500 (single) / $613,700 (MFJ) — per IRS Rev. Proc. 2025-32.⁵ Florida taxes none of this — no short-term or long-term capital gains tax at the state level.

This is a structural advantage over California (which taxes LTCG at full ordinary income rates up to 13.3%), New York (which also taxes LTCG as ordinary income at up to 9.65% + 3.876% NYC), and even Washington state (which added a 7–9.9% Capital Gains Income Tax on net LTCG above a threshold). For Florida residents, holding RSU shares for LTCG treatment is a purely federal trade-off: 37% now vs. 20% + 3.8% NIIT later. See the concentrated stock guide for how to balance this against concentration risk.

ISOs in Florida: no state AMT

Exercise with only federal AMT exposure

Incentive Stock Options create an AMT preference item at exercise: the spread (FMV minus strike price) is not taxable for regular income tax purposes, but it is included in Alternative Minimum Tax income. The 2026 federal AMT exemption is $90,100 (single) and $140,200 (MFJ), with the phaseout starting at $500,000 (single) / $1,000,000 (MFJ) at a 50 cent reduction per dollar above the threshold — per IRS Rev. Proc. 2025-32 and modified by OBBBA.⁵

California layers its own 7% state AMT on top of this. Florida does not. Florida residents exercising ISOs face federal AMT only — meaningfully lower total AMT exposure than California residents exercising the same grant. Use the ISO AMT calculator to compute your exact federal AMT; know that Florida adds $0 to that number.

Disqualifying disposition

If you sell before meeting the qualifying disposition thresholds (2 years from grant, 1 year from exercise), the spread at exercise becomes ordinary income federally — and $0 at the Florida level. Any additional appreciation above the exercise-day FMV is a short-term capital gain: ordinary income federally, $0 in Florida.

NSOs in Florida

Non-qualified stock options are taxed at exercise: the spread is ordinary income to the IRS, plus Social Security and Medicare on the earned-income portion. Florida imposes $0 state income tax on this. Post-exercise appreciation held over one year is a federal long-term capital gain (15–20% + NIIT) with $0 added by Florida.

ESPP in Florida

§423 ESPP plans in Florida follow federal structure — the ordinary income components (15% discount, look-back benefit) are taxed federally at your marginal rate, with $0 added by Florida. For disqualifying dispositions, the gain is ordinary income federally and $0 in Florida. For qualifying dispositions, the discount component is ordinary income federally, and post-purchase appreciation is federal LTCG — $0 in Florida. See the ESPP calculator to model after-tax proceeds; for Florida residents, the state income tax field is $0.

The California long-arm problem (critical for CA → FL relocators)

This is the most important section for tech workers who relocated from California to Florida. California does not release its tax claim simply because you changed your driver's license.

How California sources RSU income after you move

California allocates RSU income based on a grant-to-vest workday formula: California workdays during the vesting period ÷ total workdays during the vesting period = California's share of each vest event.⁶

• Grants received before your move: California sources proportionally on every vest event until the grant's vesting period ends. A 4-year grant received 3 years before your move will have 75% California allocation on every remaining tranche.
• New grants received after your move: No California component, assuming genuine Florida domicile and no California workdays.
• Year of the move: File a California part-year resident return (Form 540) for the year you moved. In subsequent years, file as a California nonresident (Form 540NR) to report CA-sourced equity income from pre-move grants.

Establishing genuine Florida domicile (and defeating the FTB audit)

California's Franchise Tax Board audits high-income relocations aggressively. To support a domicile change to Florida, you need contemporaneous documentation:⁶

• Obtain a Florida driver's license and surrender your California license.
• Register to vote in Florida and deregister in California.
• File a Declaration of Domicile with the Florida county clerk (a simple, inexpensive form unique to Florida — it creates a public record of your domicile change date).
• Register your vehicles in Florida.
• File a California part-year resident return (Form 540) for the year of your move, clearly reflecting the move-out date.
• Change your mailing address with the IRS, employer, brokerages, and financial institutions.
• Minimize California workdays after the move — every day you work from California counts in the allocation formula.
• If you retain a California property: convert it to a rental or sell it. Maintaining a California home you could return to weakens the domicile argument substantially.

The New York long-arm problem (critical for NY → FL relocators)

New York City attracts finance and tech workers in large numbers, and Florida — especially Miami and Palm Beach — has become the primary destination for many who leave. New York's sourcing rules differ from California's and have their own traps.

New York RSU sourcing for nonresidents

New York sources RSU income using a grant-to-vest workday formula similar to California's: NY workdays during the grant-to-vest period ÷ total workdays = NY's share of each vest. This applies to RSU grants made while you worked and lived in New York, even after you've moved to Florida and become a New York nonresident.⁷

The NY statutory residency trap

New York's statutory residency rule is particularly dangerous: if you maintain a "permanent place of abode" in New York AND spend more than 183 days in New York during the tax year, New York taxes you as a full-year resident — regardless of your domicile. Miami tech workers who keep a New York apartment and visit frequently can inadvertently become full-year New York tax residents. Sell or sublet the New York apartment; count your New York days carefully.⁷

New York City separate filing requirement

New York City imposes its own income tax (up to 3.876%) in addition to the state rate. If you were a New York City resident during part of the year of your move, you owe NYC tax on your income during that period. NYC tax does not apply to nonresidents — but see the statutory residency trap above.

Property taxes: Florida's real trade-off

Florida's property taxes are lower than Texas on a comparable home — effective rates around 0.94–0.98% in major metros vs. 1.9–2.1% in Austin and Dallas. But Florida has structural features that differ from both Texas and California.

Save Our Homes cap (2.7% in 2026)

Florida's Save Our Homes (SOH) provision caps the annual increase in a homestead property's assessed value at the lesser of 3% or CPI. For 2026, CPI is 2.7% — so the cap is 2.7% regardless of how much the market value increased. Over years of ownership, your assessed value drifts well below market value, shielding you from the tax impact of appreciation. In Miami's appreciating market, long-tenured owners can end up paying tax on an assessed value 20–40% below current market.³

Homestead exemption ($50,000)

Florida's homestead exemption reduces your taxable assessed value by up to $50,000: the first $25,000 is exempt from all property taxes; the second $25,000 (for assessed values between $50K and $75K) is exempt from non-school district taxes only. Worth approximately $750–$1,100/year in actual tax savings. Apply by March 1 for the current tax year — it's not automatic.³

Homestead portability

When you sell your Florida homestead and buy a new one in Florida, you can transfer your accumulated Save Our Homes benefit — up to $500,000 in assessed-value savings — to the new property. This is unique to Florida and valuable for tech workers upgrading to larger homes: you don't restart the SOH clock from zero. File Form DR-501T with the county property appraiser within 3 years of selling your prior homestead.³

Transaction costs: documentary stamp and intangible tax

Florida imposes two transaction taxes on real estate that California and Texas don't have in the same form:⁴

• Documentary stamp tax on deeds: $0.70 per $100 of consideration (= 0.70% of purchase price) in all Florida counties. Miami-Dade: $0.60 per $100 on the deed portion ($0.45 per $100 on the mortgage separately). The seller typically pays this tax.
• Intangible tax on mortgages: $2 per $1,000 of new mortgage principal (= 0.20%). The buyer pays this. On a $1M mortgage, that's $2,000.

On a $1.5M Miami home with a $1.2M mortgage: documentary stamp ~$10,500 + intangible tax ~$2,400. These are one-time purchase costs, not recurring — they don't affect the annual cost comparison the way income tax savings do, but factor them into your closing-cost estimate.

Florida homeowner insurance: the real wildcard

Florida's homeowner insurance costs have risen sharply and are materially higher than Texas, California, or New York in much of the state — particularly in South Florida. Average premiums of $3,000–$8,000/year in Miami-Dade vs. $1,000–$2,000/year in many other states are common. When modeling housing costs, use a real insurance quote rather than a national average. For a tech worker comparing a $2M Miami home to a $2M Bay Area home, the income-tax savings still dominate — but insurance is real and should be modeled explicitly.

Estate planning in Florida: no state layer

Florida has no state estate or inheritance tax. The OBBBA permanently set the federal estate exemption at $15M per person ($30M per couple, inflation-adjusted going forward).² Tech employees building meaningful wealth through equity comp — $5–15M over a successful career — are likely below or at the federal threshold. Florida also has favorable trust laws, including dynasty trust provisions that allow longer perpetuity periods than many states. For tech workers with substantial equity wealth, Florida is one of the best states for estate planning.

Planning strategies for Florida tech employees

1. Maximize 401(k) and Mega Backdoor Roth to reduce federal taxable income

With no state income tax to additionally save on contributions, the value of 401(k) contributions is purely federal. Maxing a 401(k) at $24,500 (2026) at a 37% marginal rate saves $9,065 in federal tax. Mega Backdoor Roth (up to $72,000 total 415(c) limit in 2026) compounds tax-free over decades. Use the Mega Backdoor Roth calculator for your specific contribution space.

2. Hold appreciated shares for LTCG — the calculus is clean in Florida

California taxes LTCG at full ordinary income rates — holding shares saves nothing at the state level there. In Florida, the state-level comparison is always $0 either way, so the decision is purely federal: 37% ordinary income now vs. 20% + 3.8% NIIT later. Holding for LTCG treatment is worth modeling if you have enough portfolio diversification to tolerate the concentration risk. See the FIRE calculator for how the compounding difference affects your FI timeline.

3. Donate appreciated stock to eliminate federal LTCG entirely

Even without a high state tax, the federal LTCG + NIIT on a large appreciated position is 23.8%. Donating appreciated employer stock directly to a donor-advised fund (DAF) avoids realizing the gain entirely — you get the charitable deduction at full FMV, pay no capital gains, and the DAF distributes to your chosen charities over time. See the DAF guide for mechanics.

4. Time new grants around your move date

New RSU grants received after you establish Florida domicile have no California or New York component — assuming genuine domicile and no ongoing workdays in those states. Grants received before your move will continue generating CA- or NY-sourced income until each grant's vesting period ends. If your company grants equity on a regular cycle, moving before a major grant cycle resets your future tax exposure. Model your specific grant schedule with an advisor.

5. Apply for homestead exemption immediately

The March 1 deadline is hard. If you close on a Florida home and establish it as your primary residence before January 1, you can apply for the homestead exemption for that same tax year. Miss the March 1 deadline and you wait until next year. File as soon as you close — the savings on a $1.5M Miami home are meaningful from day one, and the SOH cap starts protecting you the moment the exemption is granted.

6. File a Declaration of Domicile early

Florida is one of the few states that has a formal Declaration of Domicile form filed with the county clerk. It's inexpensive, publicly recorded, and provides strong evidence of the exact date you established Florida as your permanent home. This is your front line against an FTB or New York Department of Taxation and Finance audit claiming you remained a resident of your prior state longer than you claimed.

What a fee-only advisor can help you model

• Your grant-by-grant California and New York allocation after the move — exactly how much CA/NY income you'll still owe on existing RSU and option grants, and when each grant's claim expires
• The year-by-year tax trajectory of a CA-to-FL or NY-to-FL move, including part-year return complexity and the exact payoff timeline for the relocation
• Whether your specific facts support a genuine domicile change in the year you plan to move — or whether the FTB or NYDTF has basis to argue you remained a resident longer
• Capital gains optimization: hold vs. sell vs. donate for each RSU tranche, modeled with your federal rates and concentration risk tolerance
• ISO exercise timing given federal AMT — and how the Florida no-state-AMT environment compares to California for your specific spread size
• Estate and gift planning: using the $15M OBBBA exemption, annual exclusion gifts ($19K/recipient in 2026), and Florida dynasty trust structures
• Modeling total housing cost in Florida including insurance — the one variable most relocation analyses underweight