After nearly four decades working in New York City, Scott Scovel was ready for something new.

In 2019, he sold his Manhattan condo for $1.65 million. In 2021, he took a job in Miami. He hoped to benefit from Florida's lack of income tax and relatively lower cost of living.

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The tax savings, it turned out, didn't affect him as much as he expected. While working, he says he saved around $40,000 a year. But the real advantage was how much further his housing budget stretched.

He spent $727,500 on a two-bedroom condo in Miami, which left him with just under a million from the sale of his NYC condo. That cushion allowed him to retire much earlier.

"I suddenly realized I could afford to retire years earlier than I expected," Scovel told Business Insider (1). "For that, I'm extremely grateful to Miami."

His story raises an interesting question: If you have a significant amount of home equity, could a similar move work for you?

Florida has no personal state income tax (2), which can be a huge advantage for high earners.

Scovel estimated that when he lived in New York, state and city taxes cost him close to $40,000 in some years. Moving to Florida wiped that out entirely.

But that benefit has a shelf life. Once Scovel retired and stopped drawing a salary, the income tax advantage no longer mattered. Florida doesn't tax investment income (3) or Social Security. New York also doesn't tax Social Security benefits (4), though it does tax investments (5).

What about everyday costs? Scovel found them similar. Groceries were modestly cheaper, but transportation was actually pricier in Miami. He needed a car or costly ride shares instead of relying on the subway, like in New York. Many online purchases, such as clothing and household goods, didn’t change in price.

There's also the cost of property taxes to consider. The Florida average property tax rate is about 0.8% (6). In Miami, local taxes can push that closer to 2% (7). Based on the state’s estimator, Scovel could expect to pay around $14,000 a year.

New York's property taxes can be high as well — as much as 20% (8) when compared to Florida’s.

There's also homeowners' insurance to consider. Florida's rates are notoriously high. A policy for a $300,000 home runs around $5,800 a year, more than $3,000 above the national average. A similar policy in New York costs an estimated $1,800 (9).

The lesson: If you're counting on a move to dramatically slash your monthly expenses, run the numbers carefully. Day-to-day savings may be smaller than you think.

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The real benefit for Scovel wasn't tax policy. It was the large amount of home equity from his New York City sale and the relatively cheaper housing market in Florida. The idea is simple: Sell a high-value property in an expensive market and buy a similar one for less elsewhere.

If you're considering a comparable move, here are a few things to keep in mind:

This strategy works best if you have significant equity and can move to a cheaper area. Run the numbers on both sides. Be sure to consider costs like homeowners' insurance and property taxes.

The IRS excludes up to $250,000 in home sale gains from capital gains taxes, or $500,000 for married couples filing jointly, if you've lived in the home for at least two of the past five years (10).

Anything above that is taxable. If your home has increased in value significantly, the tax bill could be substantial.

Scovel moved in 2021, just after the pandemic. Median home sales have risen since then, though they are cooling this year (11). Still, a strategy that worked a few years ago may not make as much financial sense today.

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Business Insider (1); State of Florida (2); Smart Asset (3); Fidelity (4, 10); Edelman Financial Engines (5); Tax Foundation (6); Tomas Regalado (7); NYC Department of Finance (8; Bankrate (9); Redfin (11)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.