Do you get more $ in your pocket by living in a state w/o income tax?

[JEDI]

Originally posted by: ElFenix

Originally posted by: JEDI

Originally posted by: ElFenix
texas has ridiculous property tax rates. additionally, we've got really high sales tax rates. and there is the new business income tax. plus all the business asset taxes. meh.

so rent an appt, and buy stuff tax free over the internet?

and buying stuff over the internet and not paying taxes on it is tax evasion.

ignorance is strong in this one.

with 63k post, you cant be that dense?!

 

[miri]

Originally posted by: Chadder007

Originally posted by: lokiju
IMO it all evens out with other taxes in the end.

Unless you are in California....

Thats why we make so much more money out here, my income has doubled since moving here

 

[Vic]

Originally posted by: JEDI

Originally posted by: ElFenix

Originally posted by: JEDI

Originally posted by: ElFenix
texas has ridiculous property tax rates. additionally, we've got really high sales tax rates. and there is the new business income tax. plus all the business asset taxes. meh.

so rent an appt, and buy stuff tax free over the internet?

and buying stuff over the internet and not paying taxes on it is tax evasion.

ignorance is strong in this one.

with 63k post, you cant be that dense?!

He's right. While states expect retailers to collect sales taxes, the ultimate responsibility for paying sales taxes lies with the purchasers. What that means is that you, as the taxpaying consumer, are legally liable to pay the sales tax on any applicable item you purchase, even if you purchase it from out-of-state and/or over the internet and even if the retailer does not collect the tax.

edit: Texas Sales Tax FAQ

 

[Vic]

Originally posted by: miri

Originally posted by: Chadder007

Originally posted by: lokiju
IMO it all evens out with other taxes in the end.

Unless you are in California....

Thats why we make so much more money out here, my income has doubled since moving here

And what does that matter when your expenses double as well?

 

[JEDI]

Originally posted by: vi_edit
Too many other factors to give a global opinion. Local school district tax rates can make a huge difference. Just by moving from one school district to another in the same state can make the difference of thousands of dollars.

Plus you have other things to factor in such as vehicle registration and local sales tax rates.

Here's a breakdown of overall tax rates by state -

http://money.cnn.com/pf/features/lists/taxesbystate2005/index.html

By no means all inclusive, but it at least gives you an idea. The tax free states are indeed much cheaper to live in on paper than ones that do collect state income tax.

But there is more to it than what is listed.

Is there a site that calculates your tax burden for different situations?

ie:
single 50k/yr
married 2 kids, 50k year
married, no kids 125k/yr

etc

heck.. how about over cost of living for a state given your situation?

 

[miri]

Originally posted by: Vic

Originally posted by: miri

Originally posted by: Chadder007

Originally posted by: lokiju
IMO it all evens out with other taxes in the end.

Unless you are in California....

Thats why we make so much more money out here, my income has doubled since moving here

And what does that matter when your expenses double as well?

Actually we are coming out well ahead,

Rent went from $1100 in Virginia to $1500 here

Electricity went from $125 in Virginia to $35 here

Cable and internet went from $155 in Virginia to $110 here

So our expenses went up maybe $500 a month, and our income difference is much more than $500 a month

And then we live by the beach and have nice weather year round and do not have to deal with mosquitos, humidity, freezing weather and floods

 

[IGBT]

..everybody I know that retired in the last 10 years left Calif.and went to Nev.Wy.or Alaska and not one of em returned after leaving. It makes a huge diff.if your entering retirement.

 

[FoBoT]

yes, you'll still pay , there is no free lunch

some states have a higher or lower cost of living than others overall, but that isn't due just to the tax structure


try to find a high paying job in a low cost of living area FTW

 

[JS80]

Dear California,

I hate you.

-California Resident

 

[BoomerD]

One way or another, they're gonna get ya...

 

[jiggahertz]

I have the worst of both worlds. I work in MA, but own my house in NH (no income/sales tax). However, I'm taxed on my income because I work in MA. NH property tax is higher to compensate for no income/sales tax. Car registration also runs me around $400/yr.

 

[SmoochyTX]

Meh. Old thread.

 

[HombrePequeno]

It depends. If you're poor, it's best to live in a state with income tax because it's deductible under the federal income tax. If you're poor and you live in a state with only sales tax, you're getting screwed. The poor spend a higher portion of their income on consumption and in a lot of cases spend more than their income (due to things like the EITC). If you're rich, lack of an income tax is great because they tend to spend a lower percentage of their income.

I actually have a nice Excel spreadsheet with a macro that shows the regressiveness of Washington states taxation which is only sales tax. You can also manipulate it so that Washington would have any sort of tax.

 

[Deleted member 4644]

California and NY subsidizes most of the rest of the country. W/o our contributions, the other states wouldn't have roads, hospitals, firemen, etc. That said, I think the overall $$ situation roughly evens out because people make so much more in CA and NY even though the taxes are higher. Then again, with the cost of living being what it is on the coasts... you might feel like you have less money.

 

[MrMaster]

Originally posted by: LordSegan
California and NY subsidizes most of the rest of the country. W/o our contributions, the other states wouldn't have roads, hospitals, firemen, etc. That said, I think the overall $$ situation roughly evens out because people make so much more in CA and NY even though the taxes are higher. Then again, with the cost of living being what it is on the coasts... you might feel like you have less money.

What?

property taxes pay for that stuff. Not federal money.

I'm moving from Milwaukee, WI to Austin, TX in a few weeks. Property taxes are not bad in TX compared to WI. Not even close! Catch is our sales tax is only 5.x%.

After running the numbers I'll still have more than $2500 extra income by relocating to downtown austin from downtown milwaukee.