When should you consider moving to another state? Sometimes tax benefits may be a motivator when making this decision. Don talks about the tax ramifications when living in certain states.
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The pandemic has brought some new priorities into focus. Many people have decided to move from one state to another, especially as remote work becomes more of an option. From suburbs and beach towns or simply, better places to retire people are considering what’s best. What states are more tax friendly to live in?
New Jersey happens to be number one when it comes to lifetime total taxes paid. The average New Jersey resident will pay around $930,000 in taxes according to the Bureau of Labor and Statistics. The tax and political environment of a state may cause people to move or at least consider moving.
What taxes do you have based on your state? Property taxes, income taxes, and estate taxes all factor into what you pay each year. Don talks through what you usually pay and how the state government can have an impact on that. The higher your income, often the higher your taxes.
Florida often appeals to retirees, based on both the weather and the tax rates. Texas and Arizona are also popular choices. Before you make a major move like this, you’ll want to work with an advisor to see what makes sense financially. Do you have a coordinated approach between your financial plan, tax plan, and estate plan? It’s important to look at the full picture when planning, including when considering a move.
Download the PDF: 10 Things to Consider Before Moving to Another State
Listen to the entire episode or skip ahead using the timestamps below.
0:48 – School’s coming to an end!
2:22 – The pandemic has changed the way people do things.
4:19 – New Jersey is number one in lifetime total taxes paid.
6:52 – Why are people leaving certain states?
14:55 – Why does Florida appeal to retirees?
18:40 – It’s important to work with an advisor.
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Phone: (732) 784-2867
Donald W. Cash – CPA, CFP® is an independent advisor. Don began his career in 1985 as an accountant after graduating Rutgers University. In 1990 he entered the field of Estate Planning with a concentration in long term care planning. Don has been advising clients in the baby boomer and retirement market for 20 years. He has helped over 1,000 families with their planning needs. He advocates a holistic approach to Estate and Financial Planning as has relationships with other professionals including Attorneys, CPA’s, Mortgage Specialists, Insurance Specialists and Asset Managers. Don is married to Cathy and have 4 children, Carly, DJ, Nick and Tori. They live in Freehold, NJ.