• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Wealth Pilgrim

No Money Worries. No Matter What.

Neal Frankle featured in
  • Home
  • Life Insurance
  • Investing
    • Build Strong Investment Building Blocks To Avoid Going Broke In Retirement
    • Systematic Mutual Fund and ETF Investing
    • Stock Market Investing Guide
    • Choosing the Right Investment Brokerage Guide
    • How Bonds Work Guide
    • How Banks Really Work Guide
    • Annuities – What You Need To Know Before You Invest
    • A Beginners Guide To Buying Individual Stocks
    • Create A Pool Of Great Mutual Funds and ETFs To Pick From To Secure Your Retirement
    • ETF and Index Fund Investment Guide
  • Earn More
  • Banking
  • Retirement Planning
    • Retirement Guide
  • Ask Neal a Question
  • Reviews
    • Upgrade Personal Loans Review
    • Lending Club Review
    • Prosper Review
    • Ally Invest TradeKing Review
    • CIT Bank Review
    • LegalZoom Review
    • Lexington Law Review
    • Airbnb Host Review
    • Should You Drive For Uber?
  • Tax
  • Courses
    • Raise Your Credit Score So You Can Buy a House – Free Video Course

Should You Move To Reduce Your Taxes?

by Neal Frankle, CFP ®, The article represents the author's opinion. This post may contain affiliate links. Please read our disclosure for more info.

Does it make sense to relocate to another state in order to save on taxes? Depending on your situation, it could make all the sense in the world. The more money you earn and the higher your current state tax burden is, the smarter this move could be. But the benefits go far beyond simply tax savings. It could be the best way to safeguard your job, business and property value.

The Frightening Reality That High State Income Tax Threatens

Even if you don’t mind paying higher income taxes, people all around you are saying they don’t like it and they are voting with their feet. According to Investors’ Business Daily, 1000 people move out of high tax states and move to low tax states every single day. In the past 10 years, there has been a mass exodus of people leaving high tax states such as California, New York, New Jersey and Connecticut. In fact 3 ½ million more have left than have moved in to those states during that time.

That migration hurts jobs, incomes, the local economy – and the value of your homes and businesses. So you could lose a great deal of what you’ve worked hard for
if you ignore this trend – even if you don’t mind paying higher property taxes.

And it could be one factor that helps you decide to pick up your stakes and move to a more tax-friendly environment – before things get ugly at home. Right now your job might be solid and your home values could be high.  But there may be a better job waiting for you elsewhere.  And it might be easier to get a better home in other states.  In any event, the last thing you want to do is wait too long, wake up one morning and find that you have no job and nobody wants to buy your home.

To be sure, high taxes can be reversed. There have been states (like Illinois) that used to impose high taxes and later lowered them in order to turn things around. In the case of Illinois, this stemmed the tide of their population loss and helped reignite their economy.

And to be fair, there are other forces which impact population growth such as weather, politics and employment law. But you don’t have to be an anthropologist to figure all this out. Just watch where Americans are relocating. These are the places where new businesses are going to form and the local economies will expand. That in turn should help increase the value of business investments and real estate.

Where Should You Move?

If you follow the population trends, you can see that people are moving out of the North East and towards the South. To be sure, some of this might be explained by the aging population. But at the end of the day, it doesn’t matter. Those are the places where it will be easiest to find jobs, grow businesses and buy a home that will appreciate.

Do state income taxes play a part in your decision of where to live? Why or why not?

Tweet
Pin
Share2

Reader Interactions

User Generated Content (UGC) Disclosure: Please note that the opinions of the commenters are not necessarily the opinions of this site.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Are You Human? * Time limit is exhausted. Please reload CAPTCHA.

Primary Sidebar

Who is Neal Frankle

Neal Frankle

I'm a Certified Financial Planner™ with more than 25 years of experience. I feel very blessed and hope to share my personal financial experience and professional wisdom with readers of WealthPilgrim.
Read More »

Stay Connected

Facebook Twitter YouTube RSS

More Categories

Career Development
College Funding
Credit Cards
Credit Score Fixes
Money and Marriage
Debt Relief
Estate Protection
Property Investment Loans
Small Business Strategies
Spend Less Money

Disclaimer

Wealth Pilgrim is not responsible for and does not endorse any advertising, products or resource available from advertisements on this website. Wealth Pilgrim receives compensation from Google for advertising space on this website, but does not control the advertising selection or content. Please do the appropriate research before participating in any third party offers. The information contained in WealthPilgrim.com is for general information or entertainment purposes only and does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation. Wealth Pilgrim does not provide investment advisory services and is not a registered investment adviser. Neal may provide advisory services through Wealth Resources Group, a registered investment adviser. Wealth Pilgrim and Wealth Resources Group are affiliated companies. In accordance with FTC guidelines, we state that we have a financial relationship with some of the companies mentioned in this website. This may include receiving payments,access to free products and services for product and service reviews and giveaways. Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.


About · Contact · Disclaimer & Privacy policy

Copyright © Wealth Pilgrim 2019 All Rights Reserved