"What Role Should Taxes Play in Your Relocation Decision?"

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gkaplan
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"What Role Should Taxes Play in Your Relocation Decision?"

Post by gkaplan » Sat Apr 29, 2017 8:54 pm

Chances are you'll save a lot of money if you move from a high-tax state to a place with lower overall taxes.

While lowering your total tax bill is almost always a good idea, you need to look at what's being delivered for those dollars and what's important to you in terms of public services. . . .

There are some new metrics available that may help. . . .

http://news.morningstar.com/articlenet/ ... ?id=804347
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tdhg566
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Re: "What Role Should Taxes Play in Your Relocation Decision?"

Post by tdhg566 » Sat Apr 29, 2017 9:09 pm

I've always felt that comparing anything statewide, tax related, except the state income tax rate and which items are taxed or not, was meaningless. In every state there is a wide variation of local taxes and service levels. I could move a few miles away from my current home, to a more rural setting, and reduce my property taxes significantly. Certain service levels would probably drop as well. Point it, neither locations reflect the state overall.
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jeffyscott
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Re: "What Role Should Taxes Play in Your Relocation Decision?"

Post by jeffyscott » Sun Apr 30, 2017 7:08 am

The same goes for many of the other statewide comparisons at the linked article, crime rates, schools, commute times, etc. Someone living in Decatur, IL is not really affected by crime in Chicago or East St. Louis, for example.

At a minimum these sort of comparisons should look at metro areas or something, not use artificial boundaries like state lines. How does it make sense to compare averages over Rhode Island or Delaware to those over California or Texas.
Time is your friend; impulse is your enemy. - John C. Bogle

dbr
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Re: "What Role Should Taxes Play in Your Relocation Decision?"

Post by dbr » Sun Apr 30, 2017 7:50 am

gkaplan wrote:
Chances are you'll save a lot of money if you move from a high-tax state to a place with lower overall taxes.

While lowering your total tax bill is almost always a good idea, you need to look at what's being delivered for those dollars and what's important to you in terms of public services. . . .

There are some new metrics available that may help. . . .

http://news.morningstar.com/articlenet/ ... ?id=804347
Our poor author who is paying so much in property taxes could cut that bill by living in a less ritzy property.

The gist of the article that taxes are just one factor among many and that it is not simple is appropriate advice.

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jeffyscott
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Re: "What Role Should Taxes Play in Your Relocation Decision?"

Post by jeffyscott » Sun Apr 30, 2017 9:02 am

dbr wrote:Our poor author who is paying so much in property taxes could cut that bill by living in a less ritzy property.
And then he could reduce his income, since he wouldn't have the tax and other bills associated with that ritzy property, and this would reduce his income tax bill.
Time is your friend; impulse is your enemy. - John C. Bogle

hulburt1
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Re: "What Role Should Taxes Play in Your Relocation Decision?"

Post by hulburt1 » Sun Apr 30, 2017 10:06 am

I'm moving to Nevada, No income tax. buying a nice van/rv and live in it under a bridge. I would follow the sun. When it hits 75 I would move North all the way to Alaska. then back down to Key West when I saw first frost. I'm at 2.3 m. Live in Oregon I pay 10% tax right now. I would save $200000
on tax's alone think what I could do with all that money by moving. I could visit Oregon when I wanted to but not live here. There is some really nice bridges here. Just a thought.

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