How Much Can You Save in Taxes by Moving from NYC to Greenwich, CT?

If you’re considering relocating from New York City to Greenwich, CT, the financial benefits go beyond the lifestyle upgrade. Greenwich offers significant tax advantages, especially for high-income earners, homeowners, and those with large estates. Let’s break down how much you could save by making the move—and why Greenwich’s location makes it even more attractive.

Income Tax Savings: A Major Win for High Earners

New York City residents face both state and local income taxes, which can add up quickly for high earners. By moving to Greenwich, you can avoid NYC’s local income tax and benefit from Connecticut’s lower state tax rates.

• New York State Income Tax: Ranges from 4% to 10.9%.
• NYC Local Income Tax: Adds an additional 3.078% to 3.876%.
• Connecticut State Income Tax: Max 6.99%, with no local income tax.

Example Savings for a $1 Million Income:

• NYC resident total tax: ~$141,760
• Greenwich resident tax: ~$69,900

Potential Savings: $70,000+ annually in state and local income taxes.

Lower Property Taxes: A Benefit for Homeowners

While New York City’s effective property tax rate may seem lower on paper, the assessed values for luxury properties often result in high tax bills. Greenwich, by contrast, has a more favorable property tax rate, making it a more attractive option for those purchasing high-value homes.

• Greenwich Property Tax Rate: ~1.04% of assessed value.
• NYC Property Taxes: Often higher due to assessed values on luxury properties.

Example Property Taxes on a $5 Million Home:

• Greenwich: $52,000 annually
• NYC: $75,000–$100,000 annually

Potential Savings: $23,000–$48,000 annually.

Estate and Gift Tax Savings: A Long-Term Advantage

Connecticut offers a much higher estate tax exemption than New York, which can translate into significant savings for those with large estates.

• New York Estate Tax Exemption: $6.58 million in 2024.
• Connecticut Estate Tax Exemption: $13.5 million in 2024.

If your estate exceeds New York’s exemption threshold, the entire estate can become taxable, whereas Connecticut’s higher exemption provides a buffer that can save millions.

Potential Savings: Millions for estates exceeding New York’s exemption.

Sales Tax: Savings on Everyday Purchases

Sales tax in New York City is higher than in Connecticut, which adds up over time, especially for large purchases like luxury goods, vehicles, and home furnishings.

• NYC Sales Tax: 8.875%
• Connecticut Sales Tax: 6.35%

Example Savings on a $100,000 Purchase:

• NYC: $8,875
• Greenwich: $6,350

Potential Savings: $2,525 per $100,000 spent.

Conclusion: Relocation Pays Off

Beyond the appeal of Greenwich’s luxury lifestyle, excellent schools, and coastal charm, the financial incentives of relocating are clear. By moving from NYC to Greenwich, you can save tens of thousands annually—and potentially millions in the long run—all while enjoying an easy commute to Manhattan.

Whether you’re considering the move for tax savings, lifestyle upgrades, or both, Greenwich offers the best of both worlds. If you’re ready to explore your options, reach out for personalized guidance and insights into the Greenwich real estate market.

One of the biggest advantages of relocating to Greenwich is that it offers all these financial benefits without sacrificing proximity to New York City. Greenwich is just about 40-50 minutes by train to Grand Central Terminal, making it an ideal choice for professionals who want to maintain access to the city while enjoying the perks of suburban living.