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FL is income tax free, but it is going to get you in so many other ways. No one has discussed home owners insurance. Add $2-7k per year, maybe much higher. This is a fee happy state as well. Fees aren't taxes are they? WTF is synonymous with Welcome To Florida. Yes it all depends on the house you buy and where it is located, but I think you are a $400 k house buyer or perhaps more. Coastal? In a flood zone? I am 1.5 miles from the gulf not in a flood zone in the 400 k house we pay over 10k in prop tax and insurance. Add in all the fees and you will find FL is not the bargain offset by no income tax. You will need a permit to have a garage sale when you decide to leave the Sunshine State.
We love Charleston, but I need to make the math work when Florida and Texas put a lot more money in my pocket to spend as I see fit.
Appreciate your thoughts,
we were in the same position as you, able to telecommute so looked at FL, TX b/c of no state income tax, and SC b/c of lower property taxes and coastal insurance
-FL has a lot of Transient home owners so there's no sense of community/neighborhood, we toured around FL for a total of 4 weeks last year on two separate trips and found this a recurring theme.
they have slightly above property taxes compared to the US but insurance is Steep anywhere within a few miles from the coast for new buyers...then we looked more inland at Orlando/Windermere and Sinkholes were prevalent and insurance companies are hesitant to write on homes within 2 miles of any previous sinkholes, not to mention high electricity bills($300/month, AC costs from May-Oct, and pool heating costs in the winter) and the transient neighbor phenomenon again(from snowbirds to international owners as their 2nd home) so scared us away.
FL schools are poor performers also, where most good students go private.
-TX has the best schools out of the three states but outrageous property taxes, we looked at several homes in the Austin metro area and 400k homes had property taxes over $10k/annually so you cringe every time your house value increases, then add in the high electricity costs, ouch...TX is booming mainly b/c of job growth, Businesses are relocating there b/c of it's favorable tax environment. if Austin isn't already the 2nd Silicon valley, it will soon be. Great city, schools, food, and music culture, just couldn't justify the prop.taxes and too land-locked for us with no mountains nor nice beaches.
-Charleston just had a nice combination of everything, lower property taxes and closer to family in the mid-atlantic...if you need good schools, look at Mt.Pleasant b/c of beach proximity also, if you don't care for the beach, Summerville area is nice.
what we didn't like about SC is the annual vehicle property tax but its somewhat offset by the maximum $300 you'll pay on sales tax.
we were in the same position as you, able to telecommute so looked at FL, TX b/c of no state income tax, and SC b/c of lower property taxes and coastal insurance
-FL has a lot of Transient home owners so there's no sense of community/neighborhood, we toured around FL for a total of 4 weeks last year on two separate trips and found this a recurring theme.
they have slightly above property taxes compared to the US but insurance is Steep anywhere within a few miles from the coast for new buyers...then we looked more inland at Orlando/Windermere and Sinkholes were prevalent and insurance companies are hesitant to write on homes within 2 miles of any previous sinkholes, not to mention high electricity bills($300/month, AC costs from May-Oct, and pool heating costs in the winter) and the transient neighbor phenomenon again(from snowbirds to international owners as their 2nd home) so scared us away.
FL schools are poor performers also, where most good students go private.
-TX has the best schools out of the three states but outrageous property taxes, we looked at several homes in the Austin metro area and 400k homes had property taxes over $10k/annually so you cringe every time your house value increases, then add in the high electricity costs, ouch...TX is booming mainly b/c of job growth, Businesses are relocating there b/c of it's favorable tax environment. if Austin isn't already the 2nd Silicon valley, it will soon be. Great city, schools, food, and music culture, just couldn't justify the prop.taxes and too land-locked for us with no mountains nor nice beaches.
-Charleston just had a nice combination of everything, lower property taxes and closer to family in the mid-atlantic...if you need good schools, look at Mt.Pleasant b/c of beach proximity also, if you don't care for the beach, Summerville area is nice.
what we didn't like about SC is the annual vehicle property tax but its somewhat offset by the maximum $300 you'll pay on sales tax.
Good luck!
Good Summation! Don't skip James Island which is just as close to the beach as Mt P and also has some highly rated schools. It's generally less expensive than Mt P.
I'm a numbers guy, and I own my own financial business, so this should be fairly straight forward. But it's been somewhat of a challenge.
We are relocating from Indiana to somewhere south. I want it to be Charleston, but Florida is winning out because state income tax considerations are playing a significant role in my evaluation of options.
We are a considerably high earning family. 7% is a lot of money right off the top. This is basic economics.
Another ding in SC is the property tax on cars. It's expensive. My 8yr old Nissan Murano I'm paying $250 per year on it. A new car can be upwards to a $900. And this is each year and that hurts. It goes down as the value of the car depreciates but it's another tax. I moved from NJ based on the property taxes being much cheaper but I did not realize how expensive the state and car taxes were going to be.
SC also has county taxes on top of the 6% sales tax. When I go shopping on N. Main St in Summerville it's over 8%. Lots of little things too are more expensive. For some reason labor is a lot more down here. I have someone cut my lawn and it's a smaller property and it's about 25% more, and I shopped around because I was stunned at some of the rates I got. Home insurance was also more, but car insurance was a tad cheaper. Cable bill is also higher, NJ was $175, here it's $250 with less channels. Even the yearly termite contract was more down here. Businesses pay the lion's share of the school tax so it's passed on to the customer with higher rates.
Do the math and see if it works. I'm happy down here but it's not the big bargain I thought it would be.
we were in the same position as you, able to telecommute so looked at FL, TX b/c of no state income tax, and SC b/c of lower property taxes and coastal insurance
-FL has a lot of Transient home owners so there's no sense of community/neighborhood, we toured around FL for a total of 4 weeks last year on two separate trips and found this a recurring theme.
they have slightly above property taxes compared to the US but insurance is Steep anywhere within a few miles from the coast for new buyers...then we looked more inland at Orlando/Windermere and Sinkholes were prevalent and insurance companies are hesitant to write on homes within 2 miles of any previous sinkholes, not to mention high electricity bills($300/month, AC costs from May-Oct, and pool heating costs in the winter) and the transient neighbor phenomenon again(from snowbirds to international owners as their 2nd home) so scared us away.
FL schools are poor performers also, where most good students go private.
-TX has the best schools out of the three states but outrageous property taxes, we looked at several homes in the Austin metro area and 400k homes had property taxes over $10k/annually so you cringe every time your house value increases, then add in the high electricity costs, ouch...TX is booming mainly b/c of job growth, Businesses are relocating there b/c of it's favorable tax environment. if Austin isn't already the 2nd Silicon valley, it will soon be. Great city, schools, food, and music culture, just couldn't justify the prop.taxes and too land-locked for us with no mountains nor nice beaches.
-Charleston just had a nice combination of everything, lower property taxes and closer to family in the mid-atlantic...if you need good schools, look at Mt.Pleasant b/c of beach proximity also, if you don't care for the beach, Summerville area is nice.
what we didn't like about SC is the annual vehicle property tax but its somewhat offset by the maximum $300 you'll pay on sales tax.
Good luck!
Keep in mind there's a big difference in your flood insurance in MtP depending on your zone. When we were looking in Hamlin Plantation, I think it was like $5-7K/yr, we ended up in Dunes West were it's about $1500 (I think, would have to look it up).
Also, you do pay personal property tax on cars, boats, etc (which really sucks).
Keep in mind there's a big difference in your flood insurance in MtP depending on your zone. When we were looking in Hamlin Plantation, I think it was like $5-7K/yr, we ended up in Dunes West were it's about $1500 (I think, would have to look it up).
Also, you do pay personal property tax on cars, boats, etc (which really sucks).
And of course there are some locations that don't require flood insurance at all.
What would the annual taxes be on a $20,000 vehicle?
To respond to the OP, I also own my own financial business, and therefore I too can live anywhere. If you are a high income earner, there just isn't anything that beats no state income tax. I think you almost answered your own question in your original post, but all of these other little fees and breaks just don't add up to be enough. SC is beautiful, and I love the Charleston area, but if your income is high enough, and all other things are equal, you probably can find somewhere in Florida that you also like just about as much as Charleston. Personally, I live in NV, so that explains my avoidance of income tax as well. Now if you are willing to pay more because you love someplace, then that is a completely different story. Money is meant to help make you happy.
SC has one of the lowest overall tax burdens of the Southeastern states, including FL.
I can't help but wonder why the OP, a learned high income earner, is poking around on a message board asking questions meant for his CPA.....
Now, now, be nice. I never stated I was "learned", and "high income" is relative.
I make enough to notice the difference, is all.
My CPA does debits and credits, whatever those are.
"You people" live down there, and I find asking the locals is much more effective and you don't bill me by the hour to share your perspective. And I've learned quite a bit reading about the nickel & diming of the American Dream through these posts.
To respond to the OP, I also own my own financial business, and therefore I too can live anywhere. If you are a high income earner, there just isn't anything that beats no state income tax. I think you almost answered your own question in your original post, but all of these other little fees and breaks just don't add up to be enough. SC is beautiful, and I love the Charleston area, but if your income is high enough, and all other things are equal, you probably can find somewhere in Florida that you also like just about as much as Charleston. Personally, I live in NV, so that explains my avoidance of income tax as well. Now if you are willing to pay more because you love someplace, then that is a completely different story. Money is meant to help make you happy.
If I had to live in FL, I'd strongly consider the NE part of the state, around Jax, St. Augustine, etc. Option 2 would be around Tampa, someplace with water access for the boat.
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