Americans moving to low-tax states

Many Americans are beginning to consider relocating to states with lower taxes than where they currently reside, according to Reuters news.

The appeal of low or, in the case of New Hampshire and Delaware, no sales, property or income taxes may seem like a small reason to make such drastic changes, but according to Reuters, it may be worth it for those living in states that intend to increase their tax rates tremendously in the upcoming years.

Retiring in a no or low-tax state can also provide large financial benefits, if money is put away in a tax-deferred retirment account and is then withdrawn in the retiree's new state.

Reuter's even provided specific numbers as to how much people can potentially save by moving to a lower tax state. "A family of four with $150,000 in income would save $13,368 in state and local income taxes if they traded in New York for Florida, according to calculations prepared by Bob Meighan of TurboTax," the news source said.

Before starting to pack the moving boxes, though, remember that feigning a move just for the tax benefits is not an option. Some states, including New York and California, are particularly aggressive in ensuring residents have actually fully left the state before they stop charging them taxes, Reuters said. 

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