If you’re considering moving to a different state, taxes in the new state may be the deciding factor—especially if you expect them to be lower.
This article identifies the relevant state-tax issues for folks who are thinking about moving to a lower-tax state. Here’s what you need to know.
Consider All Applicable State and Local Taxes
If your objective is to move to a lower-tax state, it may seem like a no-brainer to move to one that has no personal income tax. But that’s not a no-brainer!
You must consider all the taxes that can potentially apply to local residents—including property taxes and death taxes.
One Case Study
Texas is “famous” for having no personal state income tax, while Colorado has a flat 4.63 percent personal state income tax rate. So, you might reasonably think it would be much cheaper taxwise to live in Texas than Colorado if you have a healthy income. Not necessarily! Here’s why.
The property tax rate on a home in some Colorado Springs locales is about 0.49 percent of the property’s actual value, as determined by the county assessor. Say you ... Log in to view full article.