nick: What taxes should be considered when moving to a new area?
I am trying to compose a list of the important taxes/expenditures to think about when moving. I am going to use the list as a way to compare the different cities/states that my wife and I are interested in moving to.
1. Can you think of any more?
vehicle tax
property tax
school tax
local tax
vehicle inspections
income tax
sales tax
any environmental taxes/costs
estate tax
2. Can you name a place that is low in most of this categories?
Thanks
Could you name some more state examples? That was very helpful.
Answers and Views:
Answer by shoredude2
In Pennsylvania, there are so many obscure little taxes that it will make your head spin.
Local income tax, per capita tax, and occupational privilege tax.
So let’s look at some:
Vehicles – Some states have a yearly tax on the value of the car while others have just a flat registration fee. Also consider the sales tax on purchasing of the vehicle which can easily be a few hundred dollars.
Real Estate Tax – Should be thought of as one even if you are billed by multiple agencies. Could come from a combination of county, school district, municipality, and special district.
Income Tax – In most states, it’s simply a state income tax. In some states, income tax can also be levied by municipalities and school districts.
Vehicle Inspections – Really shouldn’t be a major consideration. If you take care of your car, it’s usually a non-issue or it points out something that needs to be fixed anyway. Costs do vary but only over a small range.
Sales Tax – Not only is the sales tax rate important, but so is what is taxed. A high rate with only a minimal number of items taxed could be better than a medium rate where nearly everything is taxed.
Now as for the where. I’d recommend Delaware. Most personal taxes are low since the state gets most of its revenue from corporations.
Vehicle – Tax on a new car is 3%. Registration fee is $ 40 per year for most vehicles (commercial vehicles are by weight). And the state allows five year registrations on new vehicles and two year registrations on vehicles less than 10 years old. Inspections are done by the state at the DMV and only when reregistering the car. No extra inspection fee.
Real Estate Tax – Tax is very low since most of the school tab is picked up the state.
Income Tax – Average. When you retire, most retirement income is non-taxable.
Sales Tax – There isn’t one, not even at restaurants. There is a hotel occupancy tax of 8%.
No environmental taxes or state estate tax.
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