Given the economy, many people are looking to save money where they can.
Reducing taxes is one way to cut costs, and sometimes moving from a high-tax state to a low-tax state can eliminate thousands of dollars in expenses year after year. After all, if $3,729 of your annual salary goes to state income tax, moving to a state that doesn’t tax income could potentially save you nearly $75,000 over 20 years.
That idea is supported by migration data, recently released by the IRS, showing that taxpayers are leaving notoriously high-tax states like California and New York and choosing to live instead in low-tax states. Tennessee, Texas, and Florida are among the most commonly moved-to states, and it just so happens that these states don’t tax income. According to the IRS data, the Carolinas, where property taxes are below the national average, are also popular relocation spots.
