Phil Mickelson: A Journey From California To Florida For Financial Freedom

Phil Mickelson has a strong connection with California. He was born in San Diego and graduated from the University of San Diego High School in 1988. Currently residing in Rancho Santa Fe, Mickelson has enjoyed remarkable golf success in California, achieving 12 of his 44 PGA Tour wins there. However, the time has come for Mickelson to make a significant change that not only affects his personal life but also promises substantial financial benefits.

Recently, Mickelson informed GolfChannel.com that his family has purchased a lot in Jupiter Island, Florida, where they plan to build a new home. Construction is expected to start soon, with the move anticipated after his son graduates high school in the summer of 2021. As Mickelson and his wife Amy transition to being empty nesters, they’re not just considering a change of scenery, but also a strategic financial decision.

The reasoning behind this move can be attributed to two main factors: personal life changes and the financial implications of state taxes. California is known for having the highest state income tax rates in the nation, while Florida offers the advantage of no state income tax. This financial shift could save Mickelson millions, a compelling reason to embrace a new chapter in his life.

Table of Contents

• Biography of Phil Mickelson
• Financial Implications of the Move

Biography of Phil Mickelson

Phil Mickelson, a prominent figure in the world of golf, is known for his impressive career and deep ties to California. Born in San Diego, he not only excelled academically but also showcased his talent on the golf course from a young age. His commitment to the sport has paid off, as he has secured numerous accolades and a substantial financial portfolio through both his golfing achievements and endorsement deals.

Financial Implications of the Move

One of the most compelling reasons for Mickelson's move to Florida is the significant difference in state income tax rates. California imposes a state income tax that can range from 1% to 13.3%, depending on income levels. Given that Mickelson's earnings exceed $1 million, he falls into the highest tax bracket, which can lead to substantial tax liabilities.

In 2019, Mickelson reported an income of $39.4 million, including $2.4 million earned from golfing and an impressive $37 million from endorsements. This means he paid over $5.24 million in state income taxes alone. By relocating to Florida, he stands to save this amount annually, allowing him to retain a significant portion of his earnings.

While it's essential to note that federal taxes will still apply, and Florida has its own sales and property taxes, the potential for annual savings is a motivating factor for Mickelson and his family. The financial relief that comes with this move represents not only a strategic decision for Mickelson's career but also a way to secure a more comfortable future for his family.