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Moving to Another State? Consider the Taxes

Make sure you know how your new state will tax your moveDid you know that where you live could have an impact how much you pay in taxes each year?  And we’re not just talking income taxes, either.  As you probably know, states use the taxes they charge to fund their budgets.  So, if you are thinking about moving to a new state, you may want to keep reading.

Income Taxes

There are seven states that don’t assess income taxes at all.  They are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.  If you live in New Hampshire or Tennessee, you’ll pay income tax on just dividends and interest.  Moving to or from one of these states may actually affect your year-end taxes!

Sales Tax

Five out of our 50 states don’t charge a penny for sales tax.  Living in Alaska, Delaware, Montana, New Hampshire, and Oregon means that you’ll pay exactly what is on the price tag.  California has one of the biggest sales tax rates – 8.25%.  On top of that, you may also have local taxes in that state, so before you move, you may want to check your budget.

Gas Taxes

Basically, a state can tax almost whatever it likes.  Take gas for example.  Alaska has the lowest gas tax rate – just $0.08 per gallon.  Compare that to California and you’ll be paying $0.48 per gallon at the pump.  If you are moving from one state with a lower gas tax to one with a higher rate, you’ll find your daily commute just got a bit costlier.

Jon Huser

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