Why do people move from one state to another?
Sometimes it’s because they’re changing jobs, or want milder climate, or want to be near their families.
And some folks move to another state because they want to pay lower taxes.
But wait a second! Before you call the moving company and head off to a state that has no personal income tax, be very careful.
You see, it’s extremely important for you to consider all the taxes that must be paid by local residents.
Want to find out more? Read my new article titled Tax Tips: Thinking of Moving to a Lower-Tax State? Tax Angles to Consider.
Three ways our fact-filled article can help you:
- We’ll explain the difference between an estate tax and an inheritance tax. They say there’s no such thing as a free lunch and that’s certainly true if you more to another state or the District of Columbia. You see, for 2020, 17 states and D.C. impose their own estate tax or inheritance tax, which can hit you hard. We’ll explain both these taxes and the impact they may have on your tax bill when you read the full article.
- We’ll tell you more about the tax policies of these states and D.C. The tax policies of these states and D.C. vary a lot. That’s why you need to know about the different states’ estate and inheritance rules. We’ll give you all the details when you read the full article.
- We’ll explain the important state-tax domicile issues. If you decide to make a permanent move to a lower-tax state, it’s important to establish legal domicile there in order to decouple yourself from taxes in the state you came from. Because each state has its own rules regarding your domicile, you could wind up with two states claiming that you owe state taxes. We’ll show you how to stay safe when you read the full article.