Financial benefits of relocating to a lower tax state. Is it worth it?
11-07-2020, 01:43 PM
#1
Admirals Club 
Thread Starter
Financial benefits of relocating to a lower tax state. Is it worth it?
I was going to just post this in the Florida sub forum but thought it might be better to ask the THT members as a whole across the country about their experiences relocating to another state, whether it be job related or retiring. Personally, mine would be to leave NJ to go to another state with a lower tax burden. I don't think I'm in this boat alone and others may have already gone in this direction and can provide valuable insight to those of us still contemplating what our next move is in life. Obviously, there are pros and cons to either staying or moving (weather, tax savings, family, etc). There probably isn't a consensus on the perfect state, but what are some of your experiences. I like the desert (Arizona) but boating is limited, whereas Florida has plenty of recreational boating, but the more I look at Florida I'm starting to have some reservations of tax savings and recurring monthly expenses. Sure there is no state income tax, but when I look on the real estate sites (Zillow, etc) the property taxes are not that much less than where I currently live. Plus, some properties are in HOA which adds to the monthly budget. But the kicker seems to be the Homeowner's Insurance which is crazy high compared to where I am ($725/year) now on a $500k house. On top of that car insurance rates are higher, and from what I'm seeing on the forum from THT members is they are either getting dropped from the insurance policies or there is a large increase this year. Sticker shock.
Drop some knowledge on me and others from your experiences and any unexpected expenses that you may not have initially realized prior to your move. In retrospect who you still have moved had you been able to see the whole picture?
I do not want to limit this thread to just Florida, because these are probably questions others also have about relocating to other states.
I'm sure we have some financial folks on here who could add some great content to the mix. I read all the typical money mags and where to retire ones, but in the end it is still confusing. One state has no income tax, another no sales tax, some tax pensions, some don't. I think you get the point. Well, we are on a boating forum and in the end any extra money we save will probably get pumped right into that hole in the water. But we won't complain too much about that.
Below is the property tax breakdown of where I'm at in NJ and the largest portion is school tax, but I no longer have kids in the school system. Is that similar to the breakdowns you are seeing in your areas? Plus, property taxes will no doubt rise next year. My property taxes are north of $10K a year to put it in perspective and many home in my area are double that and than some.
Drop some knowledge on me and others from your experiences and any unexpected expenses that you may not have initially realized prior to your move. In retrospect who you still have moved had you been able to see the whole picture?
I do not want to limit this thread to just Florida, because these are probably questions others also have about relocating to other states.
I'm sure we have some financial folks on here who could add some great content to the mix. I read all the typical money mags and where to retire ones, but in the end it is still confusing. One state has no income tax, another no sales tax, some tax pensions, some don't. I think you get the point. Well, we are on a boating forum and in the end any extra money we save will probably get pumped right into that hole in the water. But we won't complain too much about that.
Below is the property tax breakdown of where I'm at in NJ and the largest portion is school tax, but I no longer have kids in the school system. Is that similar to the breakdowns you are seeing in your areas? Plus, property taxes will no doubt rise next year. My property taxes are north of $10K a year to put it in perspective and many home in my area are double that and than some.
11-07-2020, 01:56 PM
#2
Admirals Club
Simple solution don't move to Florida.
11-07-2020, 02:11 PM
#4
Senior Member
I've been living in FL for the past 30 years so having paid no income tax for that period was nice.
Yes, vehicle insurance is expensive, mine just went up another 20% at my last renewal that was last week. I don't know why, maybe because of the large elderly population here???
Property insurance is through the roof. The insurance is relatively cheap until you add the wind damage coverage(Hurricane protection) I think my base overage is $700, the wind coverage is another $2700 on top of that. You can get a alight break if you can get a good wind mitigation report.
Sounds like real estate taxes are about the same as you and yours doesn't sound like what people pay in NY. I never looked at them as being high.
Energy cost - All I pay is for my electric, isn't really that expensive.
Gated communities with HOA's are popular down here. Mine is currently at $150 a month.
Yes, vehicle insurance is expensive, mine just went up another 20% at my last renewal that was last week. I don't know why, maybe because of the large elderly population here???
Property insurance is through the roof. The insurance is relatively cheap until you add the wind damage coverage(Hurricane protection) I think my base overage is $700, the wind coverage is another $2700 on top of that. You can get a alight break if you can get a good wind mitigation report.
Sounds like real estate taxes are about the same as you and yours doesn't sound like what people pay in NY. I never looked at them as being high.
Energy cost - All I pay is for my electric, isn't really that expensive.
Gated communities with HOA's are popular down here. Mine is currently at $150 a month.
11-07-2020, 02:19 PM
#5
Senior Member
I'll try and not get political,
in Arizona we have had a large influx of tax immigrants.
I wonder if this state will soon be hugely in debt and an expensive place to live.
in Arizona we have had a large influx of tax immigrants.
I wonder if this state will soon be hugely in debt and an expensive place to live.
11-07-2020, 02:28 PM
#6
We moved to Texas. A state that brags, low taxes. I found out the tax breaks were for the buisnesses moving here. Not the employees. Property taxes are out of sight high to offset the tax breaks the millionaires receive. The sheep take it.... I’m just passing through...
11-07-2020, 02:35 PM
#7
Originally Posted by Bleu
I was going to just post this in the Florida sub forum but thought it might be better to ask the THT members as a whole across the country about their experiences relocating to another state, whether it be job related or retiring. Personally, mine would be to leave NJ to go to another state with a lower tax burden. I don't think I'm in this boat alone and others may have already gone in this direction and can provide valuable insight to those of us still contemplating what our next move is in life. Obviously, there are pros and cons to either staying or moving (weather, tax savings, family, etc). There probably isn't a consensus on the perfect state, but what are some of your experiences. I like the desert (Arizona) but boating is limited, whereas Florida has plenty of recreational boating, but the more I look at Florida I'm starting to have some reservations of tax savings and recurring monthly expenses. Sure there is no state income tax, but when I look on the real estate sites (Zillow, etc) the property taxes are not that much less than where I currently live. Plus, some properties are in HOA which adds to the monthly budget. But the kicker seems to be the Homeowner's Insurance which is crazy high compared to where I am ($725/year) now on a $500k house. On top of that car insurance rates are higher, and from what I'm seeing on the forum from THT members is they are either getting dropped from the insurance policies or there is a large increase this year. Sticker shock.
Drop some knowledge on me and others from your experiences and any unexpected expenses that you may not have initially realized prior to your move. In retrospect who you still have moved had you been able to see the whole picture?
I do not want to limit this thread to just Florida, because these are probably questions others also have about relocating to other states.
I'm sure we have some financial folks on here who could add some great content to the mix. I read all the typical money mags and where to retire ones, but in the end it is still confusing. One state has no income tax, another no sales tax, some tax pensions, some don't. I think you get the point. Well, we are on a boating forum and in the end any extra money we save will probably get pumped right into that hole in the water. But we won't complain too much about that.
Below is the property tax breakdown of where I'm at in NJ and the largest portion is school tax, but I no longer have kids in the school system. Is that similar to the breakdowns you are seeing in your areas? Plus, property taxes will no doubt rise next year. My property taxes are north of $10K a year to put it in perspective and many home in my area are double that and than some.
Drop some knowledge on me and others from your experiences and any unexpected expenses that you may not have initially realized prior to your move. In retrospect who you still have moved had you been able to see the whole picture?
I do not want to limit this thread to just Florida, because these are probably questions others also have about relocating to other states.
I'm sure we have some financial folks on here who could add some great content to the mix. I read all the typical money mags and where to retire ones, but in the end it is still confusing. One state has no income tax, another no sales tax, some tax pensions, some don't. I think you get the point. Well, we are on a boating forum and in the end any extra money we save will probably get pumped right into that hole in the water. But we won't complain too much about that.
Below is the property tax breakdown of where I'm at in NJ and the largest portion is school tax, but I no longer have kids in the school system. Is that similar to the breakdowns you are seeing in your areas? Plus, property taxes will no doubt rise next year. My property taxes are north of $10K a year to put it in perspective and many home in my area are double that and than some.
11-07-2020, 03:03 PM
#9
Admirals Club
Originally Posted by alligatorgar
I’m just passing through...
Originally Posted by BoatsnHoes7
Saying I shouldnt have to pay school tax because my kids are out of school or I dont have kids is such an ignorant statement. Someone paid taxes for you to go to school.
Op - I live in a no state income tax state, also low property tax and plenty of other people with a similar world view. It’s nice, but being from this region I’m biased, although unfortunately it’s starting to look like a lot of Californians like it here too.
I travel to AZ often, you say you like he desert, but are you sure? No way I could live their even though parts of the state are beautiful.
11-07-2020, 03:03 PM
#10
Senior Member
I left downstate Illinois in 2006. Sales tax was 5%+ plus income tax. I landed in Tennessee with a p# or so sales tax and no income tax.
Roads
Illinois? Roads like the surface of the moon.
Tennessee? Old roads are still VGC.
Firearms
Illinois. Must have an FOID and wait 3 days for handguns.
Tennessee, Pass NICS and walk out same day.
Hands down it was one of the best decisions of my life.
Roads
Illinois? Roads like the surface of the moon.
Tennessee? Old roads are still VGC.
Firearms
Illinois. Must have an FOID and wait 3 days for handguns.
Tennessee, Pass NICS and walk out same day.
Hands down it was one of the best decisions of my life.
11-07-2020, 03:19 PM
#11
Senior Member
There are so many factors in making this sort of decision. Taxes (income, property, sales), property costs, overall cost of living, income potential, suitable schools. I have lived in central Florida for almost 40 years, but I plan to relocate to east TN either in a couple years or in 10 years when I retire.
11-07-2020, 03:28 PM
#13
Senior Member
Originally Posted by Onewolf
There are so many factors in making this sort of decision. Taxes (income, property, sales), property costs, overall cost of living, income potential, suitable schools. I have lived in central Florida for almost 40 years, but I plan to relocate to east TN either in a couple years or in 10 years when I retire.
11-07-2020, 03:30 PM
#14
Admirals Club
Insurance on newer homes in Florida built to the latest hurricane codes are about the same as insurance in NJ. The cost of living in Florida is less(groceries ,utilities, etc).
There is no income tax.
If you have a significant investment portfolio there may also be an impact since NJ only recognizes tax free bonds from NJ organizations. Most of the rest of the country allows tax free bonds on public agencies from any state so moving out of NJ widens your tax-free investment options.
NJ is in poor financial condition with underfunded pension funds and huge benefit plans for teachers, police, public servants etc. Hence the property tax in Florida is less than it is in NJ.
Auto insurance is dependent on where you live. Some areas have higher loss stats and hence higher auto insurance rates than others. This is also true in NJ.
If you have some sort of structured payout from a business sale -moving to Florida will save you big on taxes.
Some other states have Personal Property Tax where each year your autos, RV's, airplanes, boats and any other things you may own are taxed based on the book value of the item. If you are a collector of these sort of things you need to look at each states tax law to see what impact it will be to you. South Carolina has low tax rates but will get you on your Ferrari, Airstream, and Learjet.
There is no income tax.
If you have a significant investment portfolio there may also be an impact since NJ only recognizes tax free bonds from NJ organizations. Most of the rest of the country allows tax free bonds on public agencies from any state so moving out of NJ widens your tax-free investment options.
NJ is in poor financial condition with underfunded pension funds and huge benefit plans for teachers, police, public servants etc. Hence the property tax in Florida is less than it is in NJ.
Auto insurance is dependent on where you live. Some areas have higher loss stats and hence higher auto insurance rates than others. This is also true in NJ.
If you have some sort of structured payout from a business sale -moving to Florida will save you big on taxes.
Some other states have Personal Property Tax where each year your autos, RV's, airplanes, boats and any other things you may own are taxed based on the book value of the item. If you are a collector of these sort of things you need to look at each states tax law to see what impact it will be to you. South Carolina has low tax rates but will get you on your Ferrari, Airstream, and Learjet.
11-07-2020, 04:20 PM
#15
Admirals Club
All you people fleeing these high taxes states are ruining the good places. Can’t you just stay put? You run away from it then vote the same rope a dopes who wrecked your home state
my little island of NH has been wrecked by Massholes, NY’ers (that includes NJ, same shit different plate).
my little island of NH has been wrecked by Massholes, NY’ers (that includes NJ, same shit different plate).
11-07-2020, 04:35 PM
#17
Originally Posted by Boat Hound
All you people fleeing these high taxes states are ruining the good places. Can’t you just stay put? You run away from it then vote the same rope a dopes who wrecked your home state
my little island of NH has been wrecked by Massholes, NY’ers (that includes NJ, same shit different plate).
my little island of NH has been wrecked by Massholes, NY’ers (that includes NJ, same shit different plate).
Exactly. If you leave a high tax state that voted for it please don’t ruin it for the rest of us by moving in and voting for the same BS. MY home state let me down this week.
11-07-2020, 04:45 PM
#18
Senior Member
Originally Posted by Rferrell
Exactly. If you leave a high tax state that voted for it please don’t ruin it for the rest of us by moving in and voting for the same BS. MY home state let me down this week.
11-07-2020, 04:46 PM
#19
Admirals Club
Whole picture. Paradise ain't cheap. Prices only going up.
11-07-2020, 05:07 PM
#20
Admirals Club
Can be. I live in DE. Average million dollar home pays $2k a year in property tax. No sales tax really adds up.
