Getting Out of Town Can Be More Expensive Than You Think
Since March, there have been endless reports of action triggered by the pandemic. As CNBC reports , we may be on the brink of a “big reshuffle” as people move from cities to homes with more privacy and space to work from home. While moving to the suburbs can be attractive, especially in a pandemic, it can be more costly than you expect.
Pay attention to income tax
While this may not be your main concern, you should consider income tax. Before falling in love with a Zillow listing in your dream suburb, look for how income tax will affect your bottom line.
There’s a good breakdown of the state to the state from the Tax Fund here – including colors to see which places can charge the most. Temporary relocation can also affect the size of your debt.
Another thing to watch out for is that if you are moving out of a high tax state, some locations – such as California, Illinois, or New York – may try to conduct a residency audit to prove that you are not trying to evade. income tax.
Learn about local income taxes
If you live in a place like New York or Philadelphia, you may already be familiar with the local income tax requirements. For everyone else, be sure to find out how much you can pay for local income tax – which may be higher than you expect.
Property and sales taxes can be more expensive
Those looking to buy a home should consider how much you will spend annually on property taxes. You can see how much you’ll be paying by county – and how it compares to the rest of the country – on this tax fund map .
You can also forget about the cost of local sales taxes, which can affect the value of whatever you buy. You can also see a breakdown of the highest state taxes and local sales here .
Keep track of higher utility bills
Higher bills in the suburbs for electricity, water, or gas can take some by surprise. If you are moving from an apartment to a detached house with a larger square footage, you may be spending a lot more on utilities each month.
Transport can be costly
If your company hasn’t moved to telecommuting, you could be spending a lot more on your daily commute. The average American can spend up to $ 5,000 a year on travel, which can include gas, car maintenance, public transportation, and more.
Expect to pay more for groceries
Another expensive surprise: You can spend more on groceries outside of the city. A 2015 study found that grocery travel to the suburbs can be more expensive due to less food.