Should I move to a state with no income tax to save on taxes?

[MrNarwhal]

I have thought about moving to Sioux Falls, SD for lower cost of living (including lower overall tax burden) compared with the Twin Cities. But it doesn't feel worth being 4 hours farther from family and friends. Also the winters are harder in terms of ice and wind.

What are your financial goals? With such high income in an area with low cost of living (most Ohio metros are cheap) it seems like you can afford to pay the taxes. But the calculation might change if you have a specific goal (e.g. early retirement) requiring a higher savings rate.

[TomatoTomahto]

One consideration that seems so important to many bogleheads is if you live in a state without state income tax, you can buy the cheaper version of tax preparation software every year. Huuuuuge savings!

Heck, the only reason we have a CPA is because of state tax. For Federal, I would just use TurboTax for our simple return.

[er999]

States with no income tax need to get revenue somehow, if those affect you the savings may not be as much as you think. Property, sales, gasoline taxes are common. If you’re renting and not commuting maybe it doesn’t impact you much.

We live in Washington state. I'm in the camp that each state will get the money it wants in some way. Our Gas tax quite high, sales tax if you make a big purchase (we bought a different boat last year which included 23k sales tax), liquor tax is highest in country and the estate tax limit has not been raised from the 2.13million in quite a few years. Other states may have other issues. Earthquake or hurricane insurance, drought, utilities etc. Family and friends should be a significant issue.

I pay over $25k / year in income tax to Oregon so unless you are buying an expensive boat every year you’ll come our way ahead in Washington, at least for those years when you are still earning a W2 income.

[smitcat]

States with no income tax need to get revenue somehow, if those affect you the savings may not be as much as you think. Property, sales, gasoline taxes are common. If you’re renting and not commuting maybe it doesn’t impact you much.

We live in Washington state. I'm in the camp that each state will get the money it wants in some way. Our Gas tax quite high, sales tax if you make a big purchase (we bought a different boat last year which included 23k sales tax), liquor tax is highest in country and the estate tax limit has not been raised from the 2.13million in quite a few years. Other states may have other issues. Earthquake or hurricane insurance, drought, utilities etc. Family and friends should be a significant issue.

"We live in Washington state. I'm in the camp that each state will get the money it wants in some way. Our Gas tax quite high, sales tax if you make a big purchase (we bought a different boat last year which included 23k sales tax),"
Please consider expanding your thoughts and examples to all states - in some states you would pay more than that for the boat and still have a state tax to pay.

[bltn]

The difference is that there are almost no other factors involved with credit card rebates: you either get them or don't while the products and services you buy remain identical. There are no quality of life differences between credit cards. The cards more or less imply "all other factors being equal", while the choice of where to live doesn't. This post perhaps should have been titled "Should I move to a location with a lower cost of living", whether in the same or different state or even ex-U.S.

As I mentioned earlier, when I was younger I went to the point of visiting a no-income-tax state specifically to view homes to buy, based entirely on the state having no income tax. I never did move. So I understand the motivation. Now I own a property in a no-income-tax state as well one in an income tax state, but my residence is in the income-tax state. In fact my residence used to be the no-income-tax state property, so I could just "move back", and the income-tax state isn't one of the ones likely to argue over my residence or not. I just haven't done that, and probably won't, even though it would have saved me tens of thousands of dollars in income tax. My income has averaged well-below-Boglehead standards throughout my career so it's not like I have tens of thousands of dollars to burn. There are just so many other considerations, maybe more when you get older. And I don't want to be one of the multiple people I know who frankly cheat on establishing residency to eliminate income taxes, but never intend to have the no-income-tax state be their actual home.

I understand all of the above post and generally agree with it except for the last sentence. Having a home in a state with state income taxes as well as a home in a no income tax state, and spending approximately equal time in both in my retirement, I thought it was wise to declare the no income tax state my domiciliary. I switched homestead exemptions from the tax to the no tax state and complied with the other requirements for the change. Is that “frankly cheating”? Paying property taxes, sales taxes and other tax costs of living in both places, with no earned income in either, paying unnecessary income taxes seems foolish to me. Not cheating. And I always prided myself on scrupulous honesty . Maybe I m missing something. Maybe not.

Maybe, I can't tell from what you wrote. I'm talking about people who reside most of the time "back home" in the income-tax state, enough time to qualify as a resident there. For the most part these people "moved" their domicile with the intention of not really moving it. Then yes if that's you, you're cheating. The rules for the states involved are whatever they are, and the rules may not be the same everywhere. I wouldn't get very excited if you miss by a day or two every few years; that's like driving a few mph over the limit sometimes, especially if it's unintended, maybe due to a medical or family situation. I guess for me intent counts for something and yes I think it's cheating if you don't intend to follow the domicile rules.

So if one complies with the domicile rules, he s not cheating. Just like complying with any set of rules when paying taxes. Either it s legal or it s not. If a behavior is legal, then any opinion of cheating becomes merely a value judgment. Sort of like politics.

You can't "declare" a state your state of domicile. Well - you can - it just doesn't have the effect you're implying it has.

People who own places to live in multiple states do "declare" a state their state of domicile when they file returns, but whether that's actually their domicile or not depends on their intent. In order to prove intent you need to do certain things. The default is that you didn't change your domicile. Whichever party is saying the taxpayer changed domicile has the burden of proof. So if you go from living 100% in state A to living 50% in state A and 50% in state B, state A is your domicile. You could even go from living 100% in state A to living 50% in state B and 50% in state C with state A still being your tax domicile, even though you no longer spend any time there and sold your house there. Yes, I've made that argument successfully (once).

By the way, since day counts were mentioned, this is completely unrelated to statutory residency, which is the 183 day test, where, for the vast majority of situations, intent is irrelevant.

In which state did you make that argument successfully? How were you able to prove a continued domiciliary in a vacated state? Having a state consider itself your tax domicile even after you sell your residence and move from the state and legally establish a domicile in another state seems like a stretch. Of course I m not a lawyer. But it seems I ve heard that some states are more aggressive than others in trying to retain a worker s tax status after a relocation. I believe I learned that on this forum.

I don t think I understand what you mean by "intent". If one complies with a state s requirements in establishing a domicile there, why would there be a problem with this?

[capran]

States with no income tax need to get revenue somehow, if those affect you the savings may not be as much as you think. Property, sales, gasoline taxes are common. If you’re renting and not commuting maybe it doesn’t impact you much.

We live in Washington state. I'm in the camp that each state will get the money it wants in some way. Our Gas tax quite high, sales tax if you make a big purchase (we bought a different boat last year which included 23k sales tax), liquor tax is highest in country and the estate tax limit has not been raised from the 2.13million in quite a few years. Other states may have other issues. Earthquake or hurricane insurance, drought, utilities etc. Family and friends should be a significant issue.

I pay over $25k / year in income tax to Oregon so unless you are buying an expensive boat every year you’ll come our way ahead in Washington, at least for those years when you are still earning a W2 income.

I agree. Many states tax everything, and some exempt social security. We actually thought about moving to Vancouver to get a better climate than eastern Wa, but family is here, and affordability of housing is much worse even in Vancouver. Our retirement income is 200 and the thought of paying income tax on that is a deal breaker! Under our current plan, we'd have the 200 through 2031-32 if we both stay alive. After that, income could moderate to 100 so income tax would be considerably less.

[spammagnet]

... Having a state consider itself your tax domicile even after you sell your residence and move from the state and legally establish a domicile in another state seems like a stretch. ...

"You can check out any time you like, but you can never leave."

[smooth_rough]

Fisher Investments announced they are moving HQ to Texas for tax reasons.

[jocdoc]

I have looked at this for myself moving to avoid taxation of IRA distributions and dividend income. The amounts are far less for me than you.
In your position I would move to save the 25K in state taxes if the new place offers you lifestyle that you desire. Family ties and social connections are important and I would establish a residency in a low income tax state as long as property taxes and insurance costs make it worthwhile but I would keep your Ohio residence and perhaps spend six months a year there. With your income this is feasible. Most states only require you spend six months and one day to establish and maintain a tax domicile.

In my case I will be a snow bird spending the colder months and establishing tax residency in a lower cost state with a warmer climate and during the pleasant season move north to be with family and grandchildren. I would maintain smaller dwellings than I have now to lower costs.

jc

[OrangeKiwi]

States with no income tax need to get revenue somehow, if those affect you the savings may not be as much as you think. Property, sales, gasoline taxes are common. If you’re renting and not commuting maybe it doesn’t impact you much.

We live in Washington state. I'm in the camp that each state will get the money it wants in some way. Our Gas tax quite high, sales tax if you make a big purchase (we bought a different boat last year which included 23k sales tax), liquor tax is highest in country and the estate tax limit has not been raised from the 2.13million in quite a few years. Other states may have other issues. Earthquake or hurricane insurance, drought, utilities etc. Family and friends should be a significant issue.

"We live in Washington state. I'm in the camp that each state will get the money it wants in some way. Our Gas tax quite high, sales tax if you make a big purchase (we bought a different boat last year which included 23k sales tax),"
Please consider expanding your thoughts and examples to all states - in some states you would pay more than that for the boat and still have a state tax to pay.

Yes, different states have different costs, depending on weather/natural resources/size/population of high income people/management of the state itself. Just like any business, it is possible that one state can have lower costs or debt burdens than another state, but provide services at or above the quality level that a higher cost state can.

Of course this can change any time, and everyone’s situation is different, but I can definitely see a dual high income earning couple come out ahead by living in a no income tax state by at least a few hundred thousand assuming they invest their tax savings.

[muffins14]

I can definitely see a dual high income earning couple come out ahead by living in a no income tax state by at least a few hundred thousand assuming they invest their tax savings.

Many jobs do not pay the same in all locations. At least for the majority of tech companies I’m aware of, the pay scales different in different locations at least to some degree

[smitcat]

States with no income tax need to get revenue somehow, if those affect you the savings may not be as much as you think. Property, sales, gasoline taxes are common. If you’re renting and not commuting maybe it doesn’t impact you much.

We live in Washington state. I'm in the camp that each state will get the money it wants in some way. Our Gas tax quite high, sales tax if you make a big purchase (we bought a different boat last year which included 23k sales tax), liquor tax is highest in country and the estate tax limit has not been raised from the 2.13million in quite a few years. Other states may have other issues. Earthquake or hurricane insurance, drought, utilities etc. Family and friends should be a significant issue.

"We live in Washington state. I'm in the camp that each state will get the money it wants in some way. Our Gas tax quite high, sales tax if you make a big purchase (we bought a different boat last year which included 23k sales tax),"
Please consider expanding your thoughts and examples to all states - in some states you would pay more than that for the boat and still have a state tax to pay.

Yes, different states have different costs, depending on weather/natural resources/size/population of high income people/management of the state itself. Just like any business, it is possible that one state can have lower costs or debt burdens than another state, but provide services at or above the quality level that a higher cost state can.

Of course this can change any time, and everyone’s situation is different, but I can definitely see a dual high income earning couple come out ahead by living in a no income tax state by at least a few hundred thousand assuming they invest their tax savings.

As you say it depends on the person and the states - the difference for us is about $30K per year. We are two people/retired/homeowner, and fairly active.

[Harry Livermore]

For us, it's the general trend of things in our little corner of the world. Not only do state and local taxes take a seemingly punitive, and growing, bite out of our income, it never seems to be "enough". The last 20 years has seen ever-climbing state income taxes, local property taxes, and many new "incidental" taxes and surcharges that are not big numbers by themselves, but add up and are trending in a direction that increases the burden on us. I look at some of these small-dollar increases and mentally compare them to what I'd rather spend the money on- maybe it's a vacation with my spouse, maybe it's something as simple as dinner out. Life is too short for excess taxation.
Additionally, I'm very sensitive to development/ over development. We live in a woodsy, quiet town with an excellent school system. For a variety of reasons, some state-mandated, developers have noticed our little town and are targeting it with proposals for 5-story apartment buildings (for example) in quiet residential neighborhoods that are currently zoned 2-acre. I have traveled all over the country, extensively, enough to be acutely aware of the lack of traffic jams and the overall quiet, polite nature of life in our quaint little downtown, and can easily see a future where the population doubles, and my little town basically becomes the very thing people were fleeing.
Now that our kids are getting closer to launching, I have a choice: do I stay and "fight" the coming changes, accept the changes, or move to a more rural location fare from employment centers and less "desirable" for the developer's bulldozer?
The decision hinges on our desire and ability to leave old friends and some family, and go somewhere new, meeting new people. As long as we are considering that, many other factors come into play- cost of living, state taxes, local culture, and weather. A no-income tax state would be a high-level factor for me.
Cheers

[danaht]

You need to also consider real estate taxes and other things as well. But if your income is that high - then a no-income tax state makes a lot of sense. I don't have the high income the OP has - but I still prefer to live in a no income tax state when I can. It also gives me a chance to do Roth conversions without the added state taxes. I also like not having to file the additional state income tax each year.

[danaht]

I've never understood moving to save income taxes by the exact people who make so much the taxes can't impact their lifestyle.
Live wherever you like! You can afford it.

For many people getting taxed at around 50 percent of income, How does that NOT impact their lifestyle?

If I lived in a lower tax state, I could work less, retire sooner, and retire with less... That seems like an impact to me...

In my job at least, it gets progressively harder to make more money, only to see less and less of that money land in my account, so much so that I'll start to work less when it's clear that the effort (post tax) doesn't justify the rewards. When the combined tax rate is > 50%, the government is making more money than I am even though I'm the one working... IMHO that impacts me - and those around me...

I agree with this. A good strategy might be to work in a no income tax state when your income is very high. Then retire wherever you want to when your income is much lower. So the OP could live in a no income tax state for 5 to 10 years - with their high income they could retire after that time. Their future income would be enough to retire but much lower - since it's just interest or dividends from their prior investments.

[changingtimes]

Why would you be fine living in South Dakota or Alaska but not Wyoming?

I know I'm stereotyping but Wyoming just sounds boring. Alaska would be preferable out of the three you mentioned just from the views I've seen on the History channel.

Those of us who know about the places in Wyoming that aren't boring are thanking you for not finding out about them.

[Florida Orange]

I believe Florida is the only state that doesn't tax any kind of income. The other states you mentioned don't tax ordinary income but they all tax some combination of things like interest, dividends, capital gains, pensions, social security and gambling winnings.

[smitcat]

I believe Florida is the only state that doesn't tax any kind of income. The other states you mentioned don't tax ordinary income but they all tax some combination of things like interest, dividends, capital gains, pensions, social security and gambling winnings.

Not really, the details are here....
https://www.investopedia.com/financial- ... e-tax.aspx

[Florida Orange]

I believe Florida is the only state that doesn't tax any kind of income. The other states you mentioned don't tax ordinary income but they all tax some combination of things like interest, dividends, capital gains, pensions, social security and gambling winnings.

Not really, the details are here....
https://www.investopedia.com/financial- ... e-tax.aspx

That article is about income tax in general along side other kinds of taxes like sales tax and property tax. But on the subject of income tax only, I'm pretty sure only Florida doesn't tax any kind of personal income at the state level.

[danaht]

I believe Florida is the only state that doesn't tax any kind of income. The other states you mentioned don't tax ordinary income but they all tax some combination of things like interest, dividends, capital gains, pensions, social security and gambling winnings.

Not really, the details are here....
https://www.investopedia.com/financial- ... e-tax.aspx

That article is about income tax in general along side other kinds of taxes like sales tax and property tax. But on the subject of income tax only, I'm pretty sure only Florida doesn't tax any kind of personal income at the state level.

At least in Nevada people can avoid the gambling tax by not gambling. I don't think Nevada has any other "income" type personal taxes.

[smitcat]

I believe Florida is the only state that doesn't tax any kind of income. The other states you mentioned don't tax ordinary income but they all tax some combination of things like interest, dividends, capital gains, pensions, social security and gambling winnings.

Not really, the details are here....
https://www.investopedia.com/financial- ... e-tax.aspx

That article is about income tax in general along side other kinds of taxes like sales tax and property tax. But on the subject of income tax only, I'm pretty sure only Florida doesn't tax any kind of personal income at the state level.

Please post a link to that data.

[Sandtrap]

Honest opinion?

You make so much money that quality of life is not a concern. You've won the money game. Don't sacrifice time with family and friends just to make another 5.3% every year.

If you *want* to live in Nevada or Texas go for it, but I'd let the tax savings be icing on the cake because it won't change your life meaningfully. Leaving behind your family will.

Thank you for your opinion. I think this sort of response is what I was looking for to get my head right. I've just been trying to approach this in the most logical mindset but I guess it's one of those "how you feel" decisions that ends up being the most logical.

I think another option I've toyed with is building out a van to camp in and traveling across the country to get a feel for different areas and experiences while keeping my current home base. It's either that or I try to stay in budget hotels and just travel around in my car and see different areas while working on the road. I think I just have this angst that I'm still somewhat young at 35 and I need to be creating some memories before the years get ahead of me and I look back with regret.

To OP:

This is the "elephant in the room" that needs to be addressed. It will not go away on its own.

Matters of "stage of life" and existential.
J

[BrooklynInvest]

I've never understood moving to save income taxes by the exact people who make so much the taxes can't impact their lifestyle.
Live wherever you like! You can afford it.

For many people getting taxed at around 50 percent of income, How does that NOT impact their lifestyle?

I guess it impacts my lifestyle a bit, but positively and negatively -

From a purely financial perspective - I'd rather not pay the income taxes of course but on the other hand my property taxes are minimal relative to the price of our house (.2% a year if I've got the decimal in the right place.) The property taxes on my FIL's house in very rural TN are half of mine but the property value is less than 10% of ours.

The public schools here are excellent so private tuition isn't needed. The public transport is decent so we don't need a car. I got my MBA from a city college at a fraction of the price of other schools. I guess I see the high taxes paying for/subsidizing stuff that I want so no biggie. And when I retire I still get that stuff and don't have to pay for it anymore

[Florida Orange]

I believe Florida is the only state that doesn't tax any kind of income. The other states you mentioned don't tax ordinary income but they all tax some combination of things like interest, dividends, capital gains, pensions, social security and gambling winnings.

Not really, the details are here....
https://www.investopedia.com/financial- ... e-tax.aspx

That article is about income tax in general along side other kinds of taxes like sales tax and property tax. But on the subject of income tax only, I'm pretty sure only Florida doesn't tax any kind of personal income at the state level.

Please post a link to that data.

I don't know how to post a link.

[smitcat]

I believe Florida is the only state that doesn't tax any kind of income. The other states you mentioned don't tax ordinary income but they all tax some combination of things like interest, dividends, capital gains, pensions, social security and gambling winnings.

Not really, the details are here....
https://www.investopedia.com/financial- ... e-tax.aspx

That article is about income tax in general along side other kinds of taxes like sales tax and property tax. But on the subject of income tax only, I'm pretty sure only Florida doesn't tax any kind of personal income at the state level.

Please post a link to that data.

I don't know how to post a link.

"But on the subject of income tax only, I'm pretty sure only Florida doesn't tax any kind of personal income at the state level."

Articles on states which have no income taxes....
AARP
https://www.aarp.org/money/taxes/info-2 ... e-tax.html
Nerdwallet
https://www.nerdwallet.com/article/taxe ... income-tax
CNBC
https://www.cnbc.com/select/states-with-no-income-tax/
USnews
https://money.usnews.com/money/personal ... income-tax
Capitalone
https://www.capitalone.com/learn-grow/m ... ome-taxes/


To attach a link to an article:
- open the selected article
- highlight the entire line in the browser and then click 'copy'
- return to Bogle post and then click 'paste'
- link should show up in that post where you clicked

[Florida Orange]

To attach a link to an article:
- open the selected article
- highlight the entire line in the browser and then click 'copy'
- return to Bogle post and then click 'paste'
- link should show up in that post where you clicked

Thanks smitcat. I'll see if I can find the article I'm thinking of.

[smitcat]

To attach a link to an article:
- open the selected article
- highlight the entire line in the browser and then click 'copy'
- return to Bogle post and then click 'paste'
- link should show up in that post where you clicked

Thanks smitcat. I'll see if I can find the article I'm thinking of.

That would be great - I have looked and cannot find any other than the above.
None say Florida is unique with income taxes.
FWIW - Florida is our home state.

[Bcdkgf]

To attach a link to an article:
- open the selected article
- highlight the entire line in the browser and then click 'copy'
- return to Bogle post and then click 'paste'
- link should show up in that post where you clicked

Thanks smitcat. I'll see if I can find the article I'm thinking of.

That would be great - I have looked and cannot find any other than the above.
None say Florida is unique with income taxes.
FWIW - Florida is our home state.

We were born in Florida and moved to Atlanta 45 years ago, came back home for retirement. Florida has grown!!!

Plus side
No Income tax, estate tax
No snow or ice storms
No sales tax on groceries, we paid county sales tax on groceries in Georgia
If you get sued, no-one can touch your house, retirement income (broadly defined) or social security.
Really great weather 9 months out of the year
Good medical care
Great fresh water springs, parks, ocean activities
Liquor is sold everywhere

Cons
Out of control growth.
Real estate taxes are high
4 months of hot, cut with a knife humidity
Hurricane season
High electricity costs
Seriously high car and house insurance. Many people drive with no insurance!
If you have kids, the public school's funding is the lowest in the country, if I had school age kids I would consider private school.

These were some of my thoughts since a decision based on income tax alone is not enough.

[smitcat]

To attach a link to an article:
- open the selected article
- highlight the entire line in the browser and then click 'copy'
- return to Bogle post and then click 'paste'
- link should show up in that post where you clicked

Thanks smitcat. I'll see if I can find the article I'm thinking of.

That would be great - I have looked and cannot find any other than the above.
None say Florida is unique with income taxes.
FWIW - Florida is our home state.

We were born in Florida and moved to Atlanta 45 years ago, came back home for retirement. Florida has grown!!!

Plus side
No Income tax, estate tax
No snow or ice storms
No sales tax on groceries, we paid county sales tax on groceries in Georgia
If you get sued, no-one can touch your house, retirement income (broadly defined) or social security.
Really great weather 9 months out of the year
Good medical care
Great fresh water springs, parks, ocean activities
Liquor is sold everywhere

Cons
Out of control growth.
Real estate taxes are high
4 months of hot, cut with a knife humidity
Hurricane season
High electricity costs
Seriously high car and house insurance. Many people drive with no insurance!
If you have kids, the public school's funding is the lowest in the country, if I had school age kids I would consider private school.

These were some of my thoughts since a decision based on income tax alone is not enough.

Here are some feedbacks compared to NY where we also spend time
Cons
Out of control growth.
Already worse in NY
Real estate taxes are high
Not compared to NY
4 months of hot, cut with a knife humidity
Depends what you like, no snow and ice
Hurricane season
Was worse in NY
High electricity costs
Much higher in NY
Seriously high car and house insurance. Many people drive with no insurance!
Car about the same, home is a bit more (10%?) as best I can figure.
If you have kids, the public school's funding is the lowest in the country, if I had school age kids I would consider private school.
No kids in school

"These were some of my thoughts since a decision based on income tax alone is not enough."
We agree - based on all costs we are about $30K per year less in Florida for all costs. (2 persons/retired/homeowners/very active)

[Bcdkgf]

To attach a link to an article:
- open the selected article
- highlight the entire line in the browser and then click 'copy'
- return to Bogle post and then click 'paste'
- link should show up in that post where you clicked

Thanks smitcat. I'll see if I can find the article I'm thinking of.

That would be great - I have looked and cannot find any other than the above.
None say Florida is unique with income taxes.
FWIW - Florida is our home state.

We were born in Florida and moved to Atlanta 45 years ago, came back home for retirement. Florida has grown!!!

Plus side
No Income tax, estate tax
No snow or ice storms
No sales tax on groceries, we paid county sales tax on groceries in Georgia
If you get sued, no-one can touch your house, retirement income (broadly defined) or social security.
Really great weather 9 months out of the year
Good medical care
Great fresh water springs, parks, ocean activities
Liquor is sold everywhere

Cons
Out of control growth.
Real estate taxes are high
4 months of hot, cut with a knife humidity
Hurricane season
High electricity costs
Seriously high car and house insurance. Many people drive with no insurance!
If you have kids, the public school's funding is the lowest in the country, if I had school age kids I would consider private school.

These were some of my thoughts since a decision based on income tax alone is not enough.

Here are some feedbacks compared to NY where we also spend time
Cons
Out of control growth.
Already worse in NY
Real estate taxes are high
Not compared to NY
4 months of hot, cut with a knife humidity
Depends what you like, no snow and ice
Hurricane season
Was worse in NY
High electricity costs
Much higher in NY
Seriously high car and house insurance. Many people drive with no insurance!
Car about the same, home is a bit more (10%?) as best I can figure.
If you have kids, the public school's funding is the lowest in the country, if I had school age kids I would consider private school.
No kids in school

"These were some of my thoughts since a decision based on income tax alone is not enough."
We agree - based on all costs we are about $30K per year less in Florida for all costs. (2 persons/retired/homeowners/very active)

My parents moved back to Florida from NYC in the late 60's and couldn't get over how everything in Florida was so much cheaper. My public school education at that time was top notch both in NYC and Dade County.

[Bcdkgf]

Thanks smitcat. I'll see if I can find the article I'm thinking of.

That would be great - I have looked and cannot find any other than the above.
None say Florida is unique with income taxes.
FWIW - Florida is our home state.

We were born in Florida and moved to Atlanta 45 years ago, came back home for retirement. Florida has grown!!!

Plus side
No Income tax, estate tax
No snow or ice storms
No sales tax on groceries, we paid county sales tax on groceries in Georgia
If you get sued, no-one can touch your house, retirement income (broadly defined) or social security.
Really great weather 9 months out of the year
Good medical care
Great fresh water springs, parks, ocean activities
Liquor is sold everywhere

Cons
Out of control growth.
Real estate taxes are high
4 months of hot, cut with a knife humidity
Hurricane season
High electricity costs
Seriously high car and house insurance. Many people drive with no insurance!
If you have kids, the public school's funding is the lowest in the country, if I had school age kids I would consider private school.

These were some of my thoughts since a decision based on income tax alone is not enough.

Here are some feedbacks compared to NY where we also spend time
Cons
Out of control growth.
Already worse in NY
Real estate taxes are high
Not compared to NY
4 months of hot, cut with a knife humidity
Depends what you like, no snow and ice
Hurricane season
Was worse in NY
High electricity costs
Much higher in NY
Seriously high car and house insurance. Many people drive with no insurance!
Car about the same, home is a bit more (10%?) as best I can figure.
If you have kids, the public school's funding is the lowest in the country, if I had school age kids I would consider private school.
No kids in school

"These were some of my thoughts since a decision based on income tax alone is not enough."
We agree - based on all costs we are about $30K per year less in Florida for all costs. (2 persons/retired/homeowners/very active)

My parents moved back to Florida from NYC in the late 60's and couldn't get over how everything in Florida was so much cheaper. My public school education at that time was top notch both in NYC and Dade County.

Edited to say we are saving a ton of money doing Roth Conversions here.

[bendix]

What an interesting discussion.

Isnt it that Ohio will assume you owe the full amount of taxes, even if you dont live in Ohio all the time, but will grant you a credit for taxes paid in other states, which is useless if that other state is a state that doesnt levy taxes? I tried to research that a while back and that was the impression I closed with. Would be great news if I was wrong!

[Mel Lindauer]

States with no income tax need to get revenue somehow, if those affect you the savings may not be as much as you think. Property, sales, gasoline taxes are common. If you’re renting and not commuting maybe it doesn’t impact you much.

We live in Washington state. I'm in the camp that each state will get the money it wants in some way. Our Gas tax quite high, sales tax if you make a big purchase (we bought a different boat last year which included 23k sales tax), liquor tax is highest in country and the estate tax limit has not been raised from the 2.13million in quite a few years. Other states may have other issues. Earthquake or hurricane insurance, drought, utilities etc. Family and friends should be a significant issue.

We're lucky (and grateful) here in Florida. The taxes on residents are low because tourists pay such a large part of our taxes.

[KirklandCoug]

States with no income tax need to get revenue somehow, if those affect you the savings may not be as much as you think. Property, sales, gasoline taxes are common. If you’re renting and not commuting maybe it doesn’t impact you much.

This!

[Mel Lindauer]

States with no income tax need to get revenue somehow, if those affect you the savings may not be as much as you think. Property, sales, gasoline taxes are common. If you’re renting and not commuting maybe it doesn’t impact you much.

This!

See my response to this in the post just above this one.

[smitcat]

States with no income tax need to get revenue somehow, if those affect you the savings may not be as much as you think. Property, sales, gasoline taxes are common. If you’re renting and not commuting maybe it doesn’t impact you much.

This!

Just not the case - best to compare a complete summary on any states that may interest you.

[changingtimes]

What an interesting discussion.

Isnt it that Ohio will assume you owe the full amount of taxes, even if you dont live in Ohio all the time, but will grant you a credit for taxes paid in other states, which is useless if that other state is a state that doesnt levy taxes? I tried to research that a while back and that was the impression I closed with. Would be great news if I was wrong!

My understanding as well, with DC. Will have to change my domicile with my employer and officially make Wyoming my state of residence to reap the benefits of working there six months out of the year.