Moving to Tax Free State.

[Jeff W]

I currently live in CA where the state income tax is 9.3%. When do I have to move to an income tax free state so that I can pay taxes in that state instead of CA in 2007?

Thank you.

[NobodysFreak]

I don't think New Hampshire has a state income tax and I don't think they have a sales tax either.

[rustyboy]

Sales taxes in the United States are assessed by most states except Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon.

Some states choose to impose no income tax. These states are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Additionally, New Hampshire and Tennessee limit their state income taxes to dividends and interest income only.

[maxtower]

You are responsible for taxes in CA on any money that was earned there. If you move Dec. 31st, then all your 2007 income will be from the next state.
Also I moved from SC to PA once, and found out three years later that because I didn't get a drivers license in PA, I still owed SC tax. Make sure you meet whatever requirements you need to gain residency in the next state. I believe a drivers license should be enough, but living and working there apparently is not.

[Mr. Now]

You might find this interesting:

Mass migration planned

CONCORD, New Hampshire (AP) --A group of libertarians Wednesday announced New Hampshire as the place where it hopes to send 20,000 Americans to create a "free state."

http://freestateproject.org/news/media_archive/0098.php

[NobodysFreak]

Mr.Now,

I've heard about that project. It seems interesting, but I'm in no position to be moving to New Hampshire. Do you know anything about their property tax situation? It seems that with their non-existent sales tax and low state income tax that the state would have a hard time generating income unless property taxes were high. However, coming from NJ, the state with the highest property taxes, NH is likely to be much less on average.

[Mr. Now]

Most everything in the NH budget is paid for with the property tax. However the state runs very lean, and in general property taxes are competitive with most states.

[Uglyowl]

A word of caution is New Hampshire wages are not as high as other states due to the fact they know take home will be higher than elsewhere. It is a doulbe whammy if you work out of state with having to pay income tax and higher property tax.

I pay $2,500 for property tax in Mass. right on the NH border. An equivalent house just over the border is between $3,500-$4,000/year.

[kyleb]

But living in Taxachusetts, you pay a [censored]-ton of tax on literally everything else.