Explore These Tax Friendly States and Avoid the New Cap Deductions
If you live in high tax states like New York, New Jersey, Connecticut, Maryland, California, or Vermont, the new tax rules that cap deductions of state and local taxes are going to have a disproportionate effect on you.
Because before the new tax rules, taxpayers who itemized could write off an unlimited amount of state and local taxes, But now, those deductions can’t exceed $10,000.
These change most affects taxpayers in states with high income and property taxes. So, you have two options:
Lose all tax-deductions above 10 grand, or move to a state that is tax-friendly.
If you’re one of those people thinking of relocating to reduce your taxes, keep in mind that lower taxes aren’t the only things to consider.
• Consider your ideal lifestyle as well. Many of that are the most tax-friendly also have better climates. Shorten your winter and spend more time doing the things you want to do.
• Look at all the costs of your ideal state. A state with low income taxes may make up for it with a high sales tax.
• Make sure the place you are looking at has the things you want and need. Fine restaurants and shopping as well as entertainment, active adult living and proximity to medical centers.
We’ve assembled a list of communities in low tax states to explore. Take some time and explore the true potential of your ideal lifestyle in the states that will treat you right.