New York’s personal income tax in 2018 reached 8.82%, which is among the most expensive in the U.S. for that year based on an analysis. While New York only ranked ninth on the list, it was more than enough to push more residents to consider moving into other states such as Florida. The Sunshine State imposes no personal income taxes and it is unsurprising why many are thinking about moving there.
If you have decided to leave New York, looking for a long-distance moving estimate will be the first step. Ask for at least three quotes from different movers before choosing a service provider.
Even Millionaires are Moving
Wall Street bankers and other wealthy individuals in New York have been moving out of the state not only because of high taxes, but also due to a high cost of living. The trend has been so noticeable that it caused the state to lose more than $8 billion in 2016 because of the exodus of rich New Yorkers. The finance industry’s lower employee bonus only encouraged more people to pack up.
Bonuses for this year could fall by another 9% after already declining by around 17% in previous years. It is only a matter of time when these rich bankers decide that spending on a one-time, long-distance move will be more sensible.
Other States with No Personal Income Taxes
Alaska, Nevada, South Dakota, Texas, Washington State, and Wyoming are the only other states that have no personal income taxes. Whether or not you are a rich New Yorker, these places could be good alternatives to Florida. Other states that complete the top 10 include Hawaii (11%), Oregon (9.9%), Minnesota (9.85%), Iowa (8.98%), New Jersey (8.97%), Vermont (8.95%), District of Columbia (8.95%) and Wisconsin (7.65%).
Interstate migration is also more common for some neighboring states. For instance, those in California may choose to leave and move to Nevada. That is because the Golden State has the most expensive personal income tax rate at 13.3%, which applies to individuals who earn more than $1 million while the rest pays a 12.3% personal income tax.
High Home Prices
New Yorkers also leave the state because of high home prices, but this problem is much more evident for those in California. In the Bay Area alone, almost half of a survey’s respondents plan to leave soon. Some of them plan to relocate into Washington State, where median home prices are nowhere near San Francisco.
Average house prices in the city cost $1.6 million during the previous year. Even those with a six-figure salary were unable to afford a standard home, so it is reasonable for lower-income residents to think about moving away.
No matter how high your personal income taxes were in 2018, you should take your time in planning a transfer to start your new life in another state smoothly. Once you decide where to move, you could start looking for professional movers. Take note that long-distance moving rates are normally cheaper in late fall until early spring.
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