Thinking of Moving to a Low-Tax State? Consider These Factors First

By Matt Whittaker, TD Ameritrade Ticker Tape Contributor

January 24, 2020

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If you live in a high-tax state, you may have considered moving to take advantage of a lower-tax jurisdiction.

States that have higher personal income taxes are often more progressive and focused on income distribution, noted Alex Reffett, principal and cofounder of registered investment advisor East Paces Group. So if you have a low income, you might benefit more by living in these states. But if you have a higher income, then the higher tax could be a disincentive to live there, and you’re less likely to require state services paid for by the higher income tax.

“There are a lot of moving parts to diagnose,” Reffett said. “It’s a big decision to move to a different state for a financial reason.”

Click here to read the full article on the TD Ameritrade website.