I'm considering living in a state with either one of above state tax exemption. I currently live in Maryland, and income tax burden is heavy, sales tax is 6%, and real property tax is over $6000 for a mediocre townhome. Real property tax alone is more than 10% of my total gross income. Maryland general assembly is working on re-balancing the budget which is likely result in more tax in some forms.
However, when I examine States like Nevada or Washington, their sales tax is relatively high due to there being no state income tax. The exception may be Wyoming as their sales tax is only 4% with no state income tax. Choosing less taxed state may not turn out to be best financially, but I would like to know others' opinion this. Does living in a state with no sales tax or income tax put more money in your pocket than living in a state with both?
Even in states with no sales or income tax, I understand that state law makers can reinstate such a tax if they decide to to bringing in more state revenue.
However, when I examine States like Nevada or Washington, their sales tax is relatively high due to there being no state income tax. The exception may be Wyoming as their sales tax is only 4% with no state income tax. Choosing less taxed state may not turn out to be best financially, but I would like to know others' opinion this. Does living in a state with no sales tax or income tax put more money in your pocket than living in a state with both?
Even in states with no sales or income tax, I understand that state law makers can reinstate such a tax if they decide to to bringing in more state revenue.