President Biden is proposing massive tax increases that will impact federal personal and corporate income taxes, capital gains taxes and who knows what else. In fact, we have not see tax increases like the ones being talked about since 1993. Don't think these tax increases will just impact the rich because at the end of the day, all Americans will be impacted one way or another. Businesses just pass higher taxes along in the way of higher prices.
No way to know for sure if these tax increases will get through Congress, but the Democrats can use Reconciliation to get it done without one single Republican vote so there is a pretty good chance that it may happen even if moderated. So now is the time to think about moving to a no income tax state to at least mitigate the amount of taxes you will be paying. There are 9 states that have no state income tax. They are Alaska, Florida, Nevada, Texas, South Dakota, Washington, Wyoming, New Hampshire and Tennessee. The last two New Hampshire and Tennessee do tax investment income so depending on your circumstances, they may not be the best choices. And, obviously some of these states have harsh winters so maybe they should be off the table.
That leaves Florida, Nevada and Texas as the best choices. Arizona is not listed because they do have a state income tax; though many people are moving there too. Property values in these states though rising are still quite reasonable especially when compared to states like California, Illinois and New York. You can find houses at all prices ranges in these no income tax states. You do need to compare other taxes like property taxes, which are high in Texas, the cost of home insurance, which can be high in Florida and Texas, state sales taxes and any other fees and charges that could come into play.
Nevada basically breaks down into Reno Tahoe and Las Vegas. Reno Tahoe is high desert climate so some cold months in winter; though not terrible. Vegas is real desert so 4 months of hot weather; but again not unbearable. The problem with Nevada to some degree in comparison to other states is access to good medical care. There are good hospitals; but not by comparison to availability in Texas, Florida and Arizona.
At Paragon Home Resources, we assist with life decisions. We can help you sell your current home and buy a home in one of these no income tax states. We can provide information to help you make the right decision for your family. It is important to see this train coming and act now.
