Residency when full timing: Florida vs Texas
My wife and I will begin our FT chapter in a couple months. Since we are currently residents of a state with income tax we're looking to be come residents of one that doesn't. We have it narrowed do...
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Not so much the difference in cost, rather the administrative details, I would not choose Texas unless I was actually anchored there, actually living there part time every year.
Florida makes life easier for people who live there part of the year; they've been doing it for a long time, and those people are an important source of revenue during the time they are in Florida.
But I think you can put too much emphasis on "no income tax" when there are other cost issues, for both real residents and absentee residents. State income tax is important only to the extent that you have a high taxable income in the state, and the rate is high. In some states with a state income tax tied to the Federal income tax, 30 to 50% of the residents pay no income tax at all.
Florida makes life easier for people who live there part of the year; they've been doing it for a long time, and those people are an important source of revenue during the time they are in Florida.
But I think you can put too much emphasis on "no income tax" when there are other cost issues, for both real residents and absentee residents. State income tax is important only to the extent that you have a high taxable income in the state, and the rate is high. In some states with a state income tax tied to the Federal income tax, 30 to 50% of the residents pay no income tax at all.
