Will Moving From One State to Another Increase or Decrease Your Tax Burden?
I moved from Washington State to Iowa at the end of 2017. The move itself cost me $ 5,929.10 .
This year, my new address also cost me $ 3,140 in state taxes.
Washington is one of eight states that have no income tax. Iowa, good or bad, no. This means that while I’m saving a lot of money by living in Cedar Rapids rather than Seattle – my rent has literally been cut in half – I can’t really figure out which state is financially better for me if I don’t point it like this. affects my tax burden.
Of course, you need to consider more than just government taxes. In Seattle, I was responsible for paying a business tax that cost me several hundred dollars a year. When I lived in Los Angeles, I paid city tax. If I were a homeowner in any of these places, I would have to pay property tax. I also pay sales tax as I do not currently live in any of the five states that do not.
Most of us don’t think about how moving to a new state could affect our taxes, but new research from transportation company HireAHelper shows that such moves can affect our tax bill up to $ 7,700 in any direction.
The best way to save on taxes is to move from Washington to Tennessee, according to the study. If you do not currently reside in the District of Columbia or are not interested in becoming a Tennessee resident, here are the ten states with the lowest dollar-to-dollar tax burdens:
- Tennessee: $ 1970
- Nevada: $ 2,002
- South Dakota: $ 2,112
- Florida: $ 2,131
- Alaska: $ 2,274
- North Dakota: $ 2,617
- Texas: $ 2,859
- Washington: $ 2,886
- Louisiana: $ 3,027
- Wyoming: $ 3,095
HireAHelper has a full state tax burden rating (including state tax , local tax, sales tax and property tax), so take a look and see if you are happy with where your state is ranked and if moving to a new location has been would be a good financial solution in terms of taxation.
Unfortunately for me, the state of Iowa levies much more taxes than Washington – the effective sales tax rate in Washington is 5% compared to 9.5% in Iowa, and that’s all there is “no state income tax in Washington.”
However, since I don’t own a property and save over $ 600 a month on rent, I’m still glad I moved.