Hi Professor! Thanks for sharing that link – I like how the rundown is pretty standardized. Any top destinations for retirement?
Have a good long weekend.
Max
]]>Hi David – $8,000 property taxes? Ouch! That’s 66% of my rent! I heard Washington State is now hitting capital gains as well, but only on gains of 250k or more. Not sure of the details, but likely something I would never need to worry about.
Hope you are well and had a nice 4th!
Max
]]>I do miss Washington state (#24) with its 0% state income tax. Living in Seattle, I can attest that they tried to make up for it with a +9% when we lived there. But low consumption made it not so much a biggie.
I would totally be game for a national VAT and dropping the income tax rates a bit.
]]>So I pay about as much in state as I do federal. If I didn’t do tax optimization (529, 403b, 401a, 457, HSA, Backdoor Roth), it would be much much worse.
I daydream daily of leaving this high tax state. I would prefer to be taxed on my low consumption. Preferably, I’ll retire to a state with low recurring property taxes.
This is the best resource I’ve found for digging into state tax burdens: https://smartasset.com/taxes/new-hampshire-tax-calculator
Substitute “new-hampshire” in the URL above with any other state for a really detailed overview of the tax regime.
]]>Thanks, Dr. Medimentary.
Good luck on the move! Glad you are getting back closer to your roots! Interesting, moving from a marginal income tax state to a flat tax state! Looks like CO has a flat tax (4.63%) on income a lot I had like North Carolina.
You are right, there is a whole other side to this equation that should look at what we are getting (or what we are supporting) with our tax dollars. Paying a higher rate for better education makes a ton of sense. Now that I have a child, I can definitely see looking into that much more than I have.
Take care,
Max
]]>I took a look at your WalletHub link and they present an interesting table. In about a week I will be moving from a low income-tax state (MO) to an average state (CO). The difference in state income tax will be about 0.56%.
The move is for personal reasons and quality of life and I’ve thought about what else I’m gaining. Since the largest line items in a state budget usually are k-12 education, Medicaid/CHIP, and higher education, I am quite happy to be taxed a little more for these services.
On the flip side, I will be moving to a lower property tax rate. Since I currently rent and plan to buy at some point in the future, this may just cancel everything out.
In general, I think the more I pay in taxes (marginal income tax), the better off I must be doing. Overall, it’s a good problem to have!
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