Monday, February 16, 2009

Taxes and choosing a state of residency

We are going to become residents of a state that has low taxes. When considering which state, we looked at personal income tax, sales tax and tax on Social Security income.

Currently there are seven states that do not have tax personal income:
  • Alaska
  • Florida
  • Nevada
  • South Dakota
  • Texas
  • Washington
  • Wyoming
Sales tax varies a lot from state to state:
Then there is the tax on Social Security: (note not all states shown below)
There are a few sites that have some good information on taxes. One is Retirement Living Information Center. I like the way Jaimie Hall-Bruzinak explained it in her blog that I regularly follow: RV Home Yet? I also checked out Alternative Resources in Sioux Falls, SD.

The states that we seriously considered were: Florida, New Mexico, Tennessee, Texas, and South Dakota.

After all our research we have determined the most RV-friendly state to make our domicile for us will be South Dakota. It is entirely an individual choice. There are many tradeoffs and considerations. Others chose different states for very valid reasons.

1 comment:

  1. Hi Randy and Pam...

    We will let you be Texans. We are pretty good folks. LOL

    Would you please send me your email address.

    Hugs,
    Dortha

    ReplyDelete