Retiring from Washington State to The Villages, Florida

The Weather Trade Is the Real Story

Seattle and the Puget Sound area receive approximately 37 inches of rain annually — not extreme by national standards, but distributed across 152 cloudy, grey days per year. The specific character of Pacific Northwest winter is not about cold (Seattle rarely gets below 30°F) or heavy snow. It is about months of low grey overcast, persistent drizzle, and the absence of sun for stretches that feel interminable to people whose outdoor activities are weather-dependent.

For retirees who played golf in the Pacific Northwest and found themselves limited to weekends in summer and almost nothing October through April, arriving at a community where you can play golf 300 days a year is the defining experience. The Villages gets approximately 240 sunny days per year. Seattle gets 152. For golf, pickleball, cycling, and every other outdoor activity that drives the Villages lifestyle, that difference is not marginal — it is the entire point.

Seattle and Puget Sound Equity

Washington State real estate — particularly in King County (Seattle, Bellevue, Redmond, Kirkland) and Snohomish County (Everett, Lynnwood, Bothell) — has been driven by the tech sector concentration in the Microsoft-Amazon-Boeing corridor into one of the highest appreciation markets outside California. Homeowners who bought in the Eastside suburbs or North Seattle in the 1990s or early 2000s have extraordinary equity positions.

A homeowner in Redmond or Kirkland who bought in 2000 and is selling today might realize $700,000–$1.2M in net proceeds depending on original purchase price and mortgage payoff. Even South King County and Snohomish County homeowners have seen appreciation that generates $400,000–$700,000 in typical net proceeds. This equity profile is California-adjacent in its magnitude — it funds all-cash Villages purchases at any price point with substantial reserves.

The Capital Gains Tax Change

Washington State enacted a 7% capital gains tax in 2023 on long-term capital gains above $250,000. This applies to stock sales, mutual fund distributions, and certain other capital gains — but importantly, real estate primary residence gains are excluded from the Washington capital gains tax (federal rules apply). For Washington retirees planning to sell appreciated investment portfolios or execute large Roth conversions, moving to Florida before doing so eliminates the Washington 7% capital gains tax on amounts above $250,000.

This is a nuanced consideration but a real one for tech sector retirees with substantial equity compensation that vested during their careers. Stock options, RSUs, and other equity compensation create large capital gains events that are directly affected by state of residence at the time of sale. For Washington retirees with significant deferred equity compensation, establishing Florida residency before selling those positions can represent meaningful tax savings.

Washington Technology Retirees at The Villages

The Microsoft, Amazon, Boeing, and broader tech sector creates a specific Washington retiree profile that fits The Villages well: highly educated, active, accustomed to organized systems, comfortable with technology, and often arriving with both the financial resources and the intellectual curiosity to engage deeply with a new community. Washington tech retirees at The Villages are typically not people who retired early — they often had long careers — and they arrive with energy and capacity to get involved.

The Villages has a significant and growing technology professional retiree community from both coasts. The Technology Club at The Villages is one of the more active clubs in the community, and the population of former software engineers, project managers, and tech executives creates social and intellectual connections that matter to this demographic. The retirees from Redmond and Bellevue find more of their professional peer group at The Villages than in many communities.