NEW YORK – Jan. 28, 2011 – Homeowners may start factoring in taxes more as they pick where to live, particularly as some states’ dramatic tax increases make them less affordable.
Reuters News reports that some of the states with the largest population gains from the 2010 U.S. Census are also known as low-tax states, such as Florida, Texas and Nevada.
A family of four with a $150,000 income could save $13,368 in state and local income taxes if they moved from New York to Florida, according to figures by Bob Meighan of TurboTax. They’d likely save even more when property taxes and estate taxes are figured in too.
Retirees in particular may be lured to low-tax states. After all, retirees who have money in a tax-deferred retirement account during their work years would profit if withdrawing the money in a low-tax state.