How Tax-Friendly Is Your State?
“What tax implications should someone consider if they are moving from one state to another? What records would they need to show, if any?
Taxpayers should keep in mind that income taxes vary greatly from state to state. For example, seven states currently do not have any state income tax. On the other hand, states such as California, Hawaii and New Jersey have the highest income tax rates in the country. In addition to their state income tax, some states also have county, city and/or school district taxes. One should consider other types of taxes, such as real estate and sales taxes. Due to the fickle and challenging nature of state income taxes, it’s important to keep these considerations in mind when contemplating a move out of state.”
Read the rest of Sam Motes’ response to this question and more here.