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Comparison•2025 Tax Year•Last verified: January 2026

New York vs Florida: Side Hustle Tax Comparison 2025

Compare New York and Florida taxes for freelancers and gig workers. See how much you could save on your side hustle income by moving to Florida with our free calculator.

New York
6.85%
Progressive
View New York details →
Florida
No state income tax
No income tax
View Florida details →
New York and Florida represent opposite ends of the tax spectrum—and for side hustlers, the difference is substantial. With approximately 91,000 people moving from New York to Florida annually (the second-largest interstate migration route in the US), understanding the tax implications is essential for anyone earning freelance or gig income. New York has one of the highest combined state and local tax burdens in the nation, with rates reaching up to 10.9% at the state level—and NYC residents face an additional 3.876% city tax. Florida, meanwhile, has no state income tax at all. This guide breaks down exactly what you'll owe in each state on your side hustle income.
**Why This Comparison Matters:** According to US Census and moving industry data, New York-to-Florida is the #2 interstate migration route in America, with approximately 91,000 people making this move annually. The primary drivers cited are: - **No state income tax**: Florida has zero income tax vs NY's up to 10.9% - **No city income tax**: NYC residents pay an additional 3.876% that disappears in Florida - **Lower cost of living**: Housing and general expenses significantly lower outside NYC metro - **Weather and lifestyle**: Year-round warm climate appeals to remote workers For side hustlers specifically, this move can result in keeping an additional 10-14% of your freelance income that would otherwise go to New York state and city taxes.

Side-by-Side Tax Comparison

MetricNew YorkFlorida
State Income Tax Rate4% - 10.9% (progressive)0% (no income tax)
NYC Additional Tax3.078% - 3.876%N/A
Common Rate for Side Hustlers5.85% - 6.85% (+NYC)0%
State Tax Filing RequiredYes (Form IT-201)No
Federal SE Tax15.3%15.3%
Est. Tax on $20K Side Hustle (NYC)*~$9,371~$7,226
Est. Tax on $20K Side Hustle (non-NYC)*~$8,596~$7,226
Annual Savings (FL vs NYC)*—~$2,145
Property Tax (Avg Rate)1.40%0.91%
Sales Tax (State + Avg Local)8.52%7.01%

*Assumes single filer with $60,000 W-2 income + $15,000 net side hustle income. Actual taxes vary based on deductions, filing status, and total income.

New York Analysis

**New York Tax Analysis for Side Hustlers** New York uses a progressive income tax system with rates ranging from 4% to 10.9%. For NYC residents, add another 3.078% to 3.876% in city income tax. This makes New York City one of the highest-taxed locations in the entire country for self-employed individuals. **Key New York Tax Facts (2025):** - **State Tax Type**: Progressive (9 brackets) - **State Rate Range**: 4% to 10.9% - **Common Side Hustler Rate**: 5.85% to 6.85% (state only) - **NYC Additional Tax**: 3.078% to 3.876% - **Combined NYC Rate**: Can exceed 14% for high earners - **Filing Requirement**: Must file if income exceeds $4,000 **Example**: If you earn $70,000 from your W-2 job and $20,000 from side hustle income (net of expenses) as an NYC resident: - Federal SE Tax: ~$2,826 - Federal Income Tax on side income: ~$4,400 - NY State Tax: ~$1,370 - NYC Tax: ~$775 - **Total Tax on Side Hustle: ~$9,371** (46.9% effective rate) New York does offer benefits: strong labor protections, access to major markets, and robust public services. But for remote workers, these benefits may not justify the tax burden.

Florida Analysis

**Florida Tax Analysis for Side Hustlers** Florida is one of nine states with no state income tax, making it one of the most popular destinations for freelancers, remote workers, and retirees seeking to minimize their tax burden. **Key Florida Tax Facts (2025):** - **State Income Tax**: 0% - **City/Local Income Tax**: 0% - **Tax Type**: None - **Filing Requirement**: No state income tax return required - **Corporate Tax**: 5.5% (only applies to C-corps, not sole proprietors) **Example**: Same scenario—$70,000 W-2 job and $20,000 from side hustle income (net of expenses) in Florida: - Federal SE Tax: ~$2,826 - Federal Income Tax on side income: ~$4,400 - Florida State Tax: $0 - **Total Tax on Side Hustle: ~$7,226** (36.1% effective rate) **Savings vs New York (NYC resident): ~$2,145/year** on $20,000 of side hustle income. **Savings vs New York (non-NYC): ~$1,370/year** on the same income. Florida does have trade-offs: no state income tax is offset by higher property taxes in some areas, 6% state sales tax (plus local additions up to 8.5%), and hurricane insurance costs.

Calculate Your Side Hustle Taxes

Use our calculator to see exactly what you'd owe in each state. Try entering your numbers, then switch between New York and Florida to compare.

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Which State Is Right for Your Side Hustle?

**New York May Be Better If You:** - Work in industries centered in NYC (finance, media, fashion, theater) - Need in-person access to clients or networking events - Value NYC's cultural amenities and don't mind paying for them - Have rent-stabilized housing or other hard-to-replicate benefits - Are building a career that requires NYC presence - Plan to live outside NYC (state tax only, no city tax)
**Florida May Be Better If You:** - Work remotely with no location dependency - Prioritize keeping more of your side hustle income - Are already considering relocating for lifestyle reasons - Run an online business serving clients nationwide - Want simpler tax filing (no state return at all) - Prefer warm weather and lower cost of living
**Important Considerations:** 1. **NYC exit is the big win**: The combined NY state + NYC tax can exceed 14%. Moving anywhere outside NYC—even within NY state—saves the city portion. Moving to Florida saves both. 2. **Residency rules are strict**: New York, like California, aggressively audits former residents. You must genuinely relocate—maintaining a NY apartment, keeping your car registered there, or returning frequently can trigger continued NY tax liability. 3. **The 183-day rule**: NY considers you a resident if you maintain a "permanent place of abode" AND spend more than 183 days in the state. Florida has no such rule since there's no income tax. 4. **Consider your industry**: Some industries are NYC-centric. If your freelance income depends on NYC relationships, factor in travel costs and potential loss of opportunities. 5. **Remote work nuances**: If you work remotely for a NY-based employer, NY may still tax that income under the "convenience of the employer" rule. This mainly affects W-2 workers, not true freelancers. 6. **Cost of living offset**: While Florida has no income tax, consider insurance costs (flood, hurricane), HOA fees common in FL, and that some FL cities have higher property taxes.

Frequently Asked Questions

How much will I save moving from New York to Florida for my side hustle?
For NYC residents, the savings are substantial. On $20,000 of net side hustle income, you could save approximately $2,145 per year in state and city taxes. For non-NYC New York residents, savings would be around $1,370 per year. The exact amount depends on your income level and tax bracket.
Does New York tax remote workers who moved to Florida?
It depends on your situation. If you're a true freelancer with clients nationwide, Florida residency means no NY tax on that income. However, if you work remotely for a NY-based employer, NY may still tax your wages under the "convenience of the employer" rule. Additionally, if you maintain a NY apartment or spend significant time there, NY may still consider you a resident.
Do I still pay self-employment tax in Florida?
Yes. Self-employment tax (15.3%) is a federal tax that applies regardless of which state you live in. The difference is Florida has no state income tax on top of your federal taxes, while New York adds 4-10.9% (plus 3-4% more for NYC residents).

Related Comparisons

New York Tax GuideFlorida Tax Guide

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