Wealthy CEOs and hedge-fund managers are flocking to Miami for the tax breaks, and it's creating massive waiting lists at the area's elite private schools

  • Wealthy CEOs and hedge-fund managers from high-tax states like New York, New Jersey, and California are flocking to Miami for the tax breaks.
  • The influx of affluent out-of-state buyers is creating huge waiting lists at the area's most elite private schools.
  • One school said the number of applications from families from New York and New Jersey has doubled in the past year.

Wealthy CEOs and hedge-fund managers are flocking to Miami for the tax breaks, and it's creating massive waiting lists at the area's most elite private schools.

7 PHOTOS
States with no income tax
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States with no income tax

Florida 

No income tax​​​​​​​

Wyoming 

No income tax​​​​​​​

Washington 

No income tax​​​​​​​

Texas

No income tax​​​​​​​

South Dakota

No income tax​​​​​​​

Nevada

No income tax​​​​​​​

Alaska

No income tax​​​​​​​

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These "tax refugees" are Wall Street hedge-fund managers, tech moguls, and other high earners from places like New York City, New Jersey, Connecticut, Chicago, and Silicon Valley, and they're fleeing the effects of tax reform that went into effect in January 2018.

Dora Puig, the top-ranked real estate broker in Miami-Dade County by sales volume in 2018, said this influx of high earners has resulted in "an uptick in giant waitlists in all the private schools" in the Miami area.

42 PHOTOS
States where Americans pay the highest in state income taxes
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States where Americans pay the highest in state income taxes

California

State income tax: 1% to 13.3% 

Maine

State income tax: 5.8% to 10.15%

Oregon

State income tax: 5% to 9.9%

Minnesota

State income tax: 5.35% to 9.85%

Iowa

State income tax: 0.36% to 8.98%

New Jersey

State income tax: 1.4% to 8.97%

Vermont

State income tax: 3.55% to 8.95%

Washington, DC

State income tax: 4% to 8.95%

New York

State income tax: 4% to 8.82%

Hawaii

State income tax: 1.4% to 8.25%

Wisconsin

State income tax: 4% to 7.65%

Idaho

State income tax: 1.6% to 7.4%

South Carolina

State income tax: 0% to 7%

Connecticut

State income tax: 3% to 6.99%

Arkansas

State income tax: 0.9% to 6.9%

Montana

State income tax: 1% to 6.9%

Nebraska

State income tax: 2.46% to 6.84%

Delaware

State income tax: 2.2% to 6.6%

West Virginia

State income tax: 3% to 6.5%

Georgia

State income tax: 1% to 6%

Kentucky

State income tax: 2% to 6%

Louisiana

State income tax: 2% to 6%

Missouri

State income tax: 1.5% to 6%

Rhode Island

State income tax: 3.75% to 5.99%

Maryland

State income tax: 2% to 5.75%

North Carolina

State income tax: 5.75%

Virginia

State income tax: 2% to 5.75%

Oklahoma

State income tax: 0.5% to 5.25%

Massachusetts

State income tax: 5.1%

Alabama

State income tax: 2% to 5%

Mississippi

State income tax: 3% to 5%

Utah

State income tax: 5%

Ohio

State income tax: 0.495% to 4.997%

New Mexico

State income tax: 1.7% to 4.9%

Colorado

State income tax: 4.63%

Kansas

State income tax: 2.7% to 4.6%

Arizona

State income tax: 2.59% to 4.54%

Michigan

State income tax: 4.25%

Illinois

State income tax: 3.75%

Indiana

State income tax: 3.3%

Pennsylvania

State income tax: 3.07%

North Dakota

State income tax: 1.1% to 2.9%

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"I think a portion of that is being attributed to the tax reform with the migration of people from New York, California, Chicago, Illinois, New Jersey coming down here," Puig told Business Insider.

Several top private schools in the area told Business Insider that they've seen increased interest from families moving from these states. 

Palmer Trinity School, an independent college prep Episcopal Day School in Miami that's ranked among the area's top private schools, has seen a jump in families from New York and New Jersey applying to the school in the past year, Suzanne Calleja, the associate head of school for communications, told Business Insider.

"In fact, the Admissions Office stated the numbers have doubled since last year," Calleja said.

Miami Country Day School, ranked the fourth-best private school in the Miami area by data analysis company Niche, has also seen an uptick in applicants from New York, Boston, Chicago, Los Angeles, and Houston, Ingrid Palmisano, the director of admissions and financial aid, told Business Insider.

Cliff Kling, the president of Gulliver Schools, which Niche ranks No. 3 in the Miami area and where tuition runs between $17,320 and $36,680 per year, said the school does have a waiting pool for certain grade levels. The school has been seeing "strong interest from families relocating to Miami both from high tax states and around the world," Kling told Business Insider.

For some of Miami's most exclusive schools, extensive waiting lists are the norm, so an uptick in applicants isn't necessarily noticeable.

Ransom Everglades School, the No. 1 private school in Miami-Dade County by Niche that costs $39,950 per year, always has a surplus of applicants, according to Amy Shipley, the school's director of communications.

"It would be difficult for us to comment on any trends related to people moving to Miami for tax purposes," Shipley said. "Our waiting lists are always full.” 

This migration from out-of-state is even prompting openings of new private schools in Miami, Puig said. 

She pointed to Avenues, an elite private school that opened in New York City in 2012 and is set to open a Miami location, as the Miami Herald reported. Annual tuition for Avenues is $56,400.

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