Home Buyers Leaving High-Tax States To Lower Taxed States

This news article covers home buyers leaving high-tax states to low-tax states and has been updated on July 1st, 2024. We will leave the original article from October 15, 2020, unedited and continue with the update as of July 1st, 2024. New York continues to accelerate its problems. New Yorkers are still fleeing the state at an alarming rate. Mario Cuomo resigned due to multiple sexual harassment allegations. New York police officers and firefighters are protesting the city and state coronavirus vaccine mandates. Many New Yorkers are still fleeing the state at an alarming rate due to consistent high taxes, high home prices, political unrest, vaccine mandates, and no green light at the end of the tunnel. Property taxes keep on increasing with no cap in sight. With the exit of Mario Cuomo, we will see what the future will bring. Bill de Blasio is no longer Mayor of New York due to exceeding New York’s term limit cap.

Below is the original article on Home Buyers Leaving High-Tax States from October 15th, 2020

Home buyers leaving high-tax states to low-tax states due to the neverending tax increases. New York is one of the top states that is seeing a mass exodus of individual taxpayers and businesses to other tax-friendly states with affordable housing. Governor Cuomo and his allies seem incompetent in leading the state. Their only solution to cover the out-of-control spending is increasing taxes and/or creating new taxes. In this article, we will discuss and cover how home buyers leaving high-tax states to low-tax states with affordable cost of living and affordable housing.

Fact Versus Fiction About The Mass Exodus of New Yorkers

Rumors of Home buyers leaving high-tax states to lower-taxed states have been floating around for many years. Fox News Anchor Sean Hannity, a resident of New York, has been talking about leaving New York and relocating to Florida for many years. There are rumors that President Donald Trump will be setting his primary residence in Florida and leaving New York. Rumors home buyers leaving high-tax states to low-tax states is not just rumors. It has become a reality. Governor Andrew Cuomo confirmed that The Wealthy is Leaving High-Tax New York. Cuomo confirmed that due to home buyers leaving New York to lower-taxed states, it has affected tax revenues for the whole state.

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Home Buyers Leaving New York Due To High Taxes

Homebuyers leaving New York not just because of high home prices and high property taxes. New York has one of the highest sales taxes and regulations out of any state in the country Even with high New York taxes, the state is still broke. Unlike other states who are financially healthy, New York seems to get into a deeper deficit every year. It is to no surprise that the state is in a mess. First and foremost in saving the state is getting incompetent politicians like Bill de Blasio, Senator Chuck Schumer, and Andrew Cuomo out of office.nNew York elected Alexandra Ocasio-Cortez as their congresswoman in the Bronx who has proven herself to be America’s dumbest dingbat.

Why Home Buyers Leaving High-Tax States To Other States

The state of New York has budgeted $176 billion for the coming 2020 fiscal year which starts 1st April 2020. Out of the $176 billion, $100 billion comes from federal funding. This translates to a 3% deficit after one month. Andrew Cuomo is quick to blame The Trump Administration’s new federal tax cuts. New federal tax laws limit New York tax deductions to $10,000. Andrew Cuomo also blames the shortage in tax revenues due to the volatility of the stock markets. New York is a very blue state. The liberal thinking of most politicians is taxing the rich. No matter what President Trump did to stimulate the economy through tax cuts will not fly with Cuomo and New York Democrats.

New York Tax Code

New York already has one of the highest tax rates out of any state. The top 1% of wage earners in the state are paying 46% of all state income taxes. Cuomo concedes that high-wage income earners are leaving the state for low-taxed states. In 2019,  61.5% of New York movers left the state

Population Data Of New York

Only 38.5% of new residents moved to New York. 41% of the New Yorkers who left had an income of greater than $175,000 per year. 8% of the New Yorkers who left had incomes of $65,000 or less. From a period of 2012 to early 2018, the state of New York has over 1.0 million NET residents moving out of the state. This is the highest amount of people moving out of any one state in the U.S. California and Illinois are two other top states that lost residents due to high taxes and incompetent politicians. Illinois and California lost 1 million residents from 2008 to 2016. New York lost 1.4 million people.

Home Buyers Leaving New York: Taxing The Rich Is Dangerous Move By Incompetent Politicians

To save New York from financial disaster, New Yorkers need to elect competent politicians.

Bronx residents recently sent Alexandra Ocasio-Cortez. She is a national laughing stock and makes Elizabeth Warren look sane. Her ideology in taxing 70% on America’s wealthiest is not what drives revenues to the government. Not everyone who migrated out of New York is wealthy. However, a substantial percentage are. Recent tax code changes in deductibility of federal taxes did not help states with high taxes like New York. Wealthy folks have more choices than those who are not wealthy. One of the choices they have is to move out of New York if taxes become ridiculous.

This is exactly what is happening in New York.

Home Buyers Leaving New York: The Top States New Yorkers Are Moving To

 The exodus of New York taxpayers fleeing the state is noot just because of real estate prices and property taxes. It is also because of the high cost of living in New York as well as sales and income taxes. Every day, countless New Yorkers leave the state to other states with lower taxes and lower costs of living. The following states are the top low taxed states where New Yorkers are migrating to:

• Florida
• Texas
• North Carolina
• South Carolina
• Tennessee
• Indiana
• Kentucky
• Mississippi
• Georgia
• Ohio
• Michigan
• Colorado
• West Virginia
• Alabama

High taxes force people to seek homes in other states. Lower taxed states attract new home buyers and residents and businesses. Democrats do not seem to get it. New Jersey has the highest property tax rates in the country. Many homebuyers in New Jersey are buying homes in other states. California, the largest state in the union, has high state taxes like New York. Not only are residents moving out of the state but businesses as well. 

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This guide covers buying a home in low-taxed states. Buying a home In low-taxed states is now possible for remote wage earners. The coronavirus pandemic has changed American businesses and workers. When the COVID-19 pandemic hit the United States in February 2020, many companies issued stay-at-home orders for all their employees. Only workers who can work remotely were employed. Those who needed to report to work were furloughed or laid off if their jobs were non-essential.

More and more jobs that traditionally required reporting to a brick-and-mortar office location are now being transformed into remote positions. More and more workers have become remote wage earners. Buying a home in low-taxed states make homeownership possible for remote workers.

States started to reopen beginning in late April. More and more states are reopening in phases. However, companies are not calling their workers back to work. Instead, companies are instructing their employees to work from home. A large number of companies are now transforming jobs to remote job positions. Having remote workers is a win-win for both the company and the employees.  This article will discuss and cover buying a home in low-taxed states. Click here to buy a home in low taxed states

Buying A Home In Low-Taxed States Is Now Possible For Remote Wage Earners

Some states have a higher cost of living than others. Higher cost of living states also has higher housing prices. Many counties in California have home prices that are double the median average home prices. The average home price in California is $797,000, while the average in Tennessee is $497,800. According to the Bureau of Labor Statistics’ new data on consumer expenditures, Americans spent more on taxes than food and clothing combined in 2022. The Bureaus of Labor Statistics said the following:

“Consumer units” (which include families, financially independent individuals, and people living in a single household who share expenses) spent an average of $9,562 on food and clothing in 2018, according to BLS. But they spent $16,749 on federal, state, and local taxes.

In 2022, the average tax bill in the United States came out as follows for an American worker:

• $9,819 in federal income taxes
• $4,098 in state and local income taxes
• $151 in other taxes
• $6,717 in social security taxes
• $4,065 in property taxes

The total average taxes paid by an average American worker was $18,749. This is why buying a home in low-taxed states benefits the average American wage earner in not being priced out of buying a house.

Amount Paid In Taxes Versus Spending on Food and Clothing

According to the Bureau of Labor and Statistics, the average American spent an average of $9,729 annually on food in 2022. $3,833 was spent on clothing in 2022. This totals $11,562 spent on food and clothing for the average American consumer in 2022.

Compare these figures with how the average American consumer spent $9,917 alone. $9,819 for federal and state income taxes and $2,098 for state and local income taxes.

This was more than the average expenditure of $11,562 for food ($9,729) and clothing ($3,833). The average gross income for an average American worker in 2022 was $93,573. The largest expense for an average consumer was $21,884 for housing. The average property tax bill was $4,065 out of the housing expenses.

Benefits of Buying a Home in Low-Taxed States

More and more remote wage earners are fleeing high-taxed states like New York, California, Illinois, and New Jersey to other low-taxed states with lower living costs. For example, Illinois has the highest out-migration rate in the country. Led by Democrat Governor JB Pritzker, Illinois has the highest tax rate in the nation. The state also has the second-highest property tax rate in the country, right behind New Jersey. Illinois faces an incompetent governor, corrupt politicians, and no financial direction.

Pritzker has no solution to fixing the state’s broken pension system other than increasing taxes. Pritzker has doubled the state’s gas tax, increased existing taxes in over 20 items, created new taxes, and is planning on changing the state’s flat tax to a progressive income tax system. There have never been more businesses and taxpayers leaving Illinois than ever before.

Higher wage earners will leave the state in droves with the progressive system. Many high-income wage earners can work remotely. Why would they live in Illinois when there are states like Tennessee, Florida, Texas, Nevada, and others where there are no state income taxes and property taxes are a fraction of those in Illinois? Moving to a lower-taxed state can get homeowners more homes for the money. Home values do not appreciate in high property tax states such as Illinois and New Jersey. Click here to buy a home in low-taxed states

This article on buying a home in low-taxed states was updated on July 1st, 2024.