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Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by flyingsaucermom
We don't have an income tax, but our sales tax is 10% and some of our other fees are higher than I've paid in other states. Many people, myself included, will make sure we build some shopping into a trip if we're heading into OR (no sales tax) for any reason. I personally like it this way because I don't consume a lot and can sort of control my taxation more than if it were based on income.
Same her, we love going to Portland for a weekend anyway and often buy things there and sometimes save enough on the lack of sales tax to pay for most of the gas. While our sales tax and property tax are high, the lack of state income tax at least allows you decide what/where to buy, and where to live, and you can get a promotion or raise without losing as much of it to income tax. The gas tax is really high but we have a choice there too I take the bus to work most days and my wife works within a mile of home
You know, I personally think that Alabama's lowest property taxes, no vehicle inspections, and HIGH sales taxes (regularly 10% or more in many locales), makes life most difficult for low income persons. Many folks have far less than 100k in household income annually, but the sales taxes on the food we eat, at 10%, again, in many locales, really takes a bite at the end of the year. Further, because our real estate taxes are so low, many are encouraged to buy up huge amounts of land, and essentially just sit on it, or rent the land to someone who can't afford to purchase on their own. Again, regressive to lower income people. Lastly, and this one hits home to me these days, only the state of Oklahoma has done more to cut the state budget for public education. What this means is that anyone who has a child in the public school system, is constantly badgered for money. ANY extracurricular activity, obviously not required, will mandate that the parent get ready to fork out thousands for the cost of uniforms and transport, and simply being involved with the school's teams.
So, if you are around the median income for a family of 4 in Alabama, having a state income tax on top of high sales taxes really takes away from your ability to save.
FYI, we also have some of the lowest incomes in the country as well, and one of the higher unemployment rates currently. That rate has actually trickled up in the past 12 months...even with announcement after announcement of auto sector hirings.
And, I think many of you can see why I am in a mood to sell my residence in this state and move on to a new way of thinking.
I make about 175K per year and moved from CT to TX
I save about 14K a year in taxes
Yes I have saved quite a bit of money moving from crappy CT to tax free TX
Whether you get to keep your savings depends on whether you buy a home, what size of one, and where it is located.
I pay 7k per year in property taxes on a 250k house in the suburbs. Plus I live in a coastal county, so windstorm + flood insurance for 2k per year. Sigh.
Whether you get to keep your savings depends on whether you buy a home, what size of one, and where it is located.
I pay 7k per year in property taxes on a 250k house in the suburbs. Plus I live in a coastal county, so windstorm + flood insurance for 2k per year. Sigh.
My effective property tax rate is less than that after exemptions but I'd still prefer this over an income tax. I bought a house valued near our total income so the effective income tax is directly relatable. If I bought a house twice our income then clearly your have to double to property tax rate to apply it roughly as an income tax
I lived in TN, and while sales tax was high (9.75%, sales tax on basic food/groceries was 5%-7%), we had no earned income tax, and other taxes and fees were quite low.
Registering my car back home in TN was $31.50. Here in IN, it's almost $500, BUT my car insurance is about $800 cheaper annually because TN is much higher crime.
I pay 3.4% in state income tax to Indiana, plus another 1% to my county. This comes out to about $150/month in additional state and local taxes for me that I didn't pay in TN.
I certainly don't feel like I get any more for my dollar here in IN than in TN, but my income more than doubled.
You know, I personally think that Alabama's lowest property taxes, no vehicle inspections, and HIGH sales taxes (regularly 10% or more in many locales), makes life most difficult for low income persons. Many folks have far less than 100k in household income annually, but the sales taxes on the food we eat, at 10%, again, in many locales, really takes a bite at the end of the year. Further, because our real estate taxes are so low, many are encouraged to buy up huge amounts of land, and essentially just sit on it, or rent the land to someone who can't afford to purchase on their own. Again, regressive to lower income people. Lastly, and this one hits home to me these days, only the state of Oklahoma has done more to cut the state budget for public education. What this means is that anyone who has a child in the public school system, is constantly badgered for money. ANY extracurricular activity, obviously not required, will mandate that the parent get ready to fork out thousands for the cost of uniforms and transport, and simply being involved with the school's teams.
So, if you are around the median income for a family of 4 in Alabama, having a state income tax on top of high sales taxes really takes away from your ability to save.
FYI, we also have some of the lowest incomes in the country as well, and one of the higher unemployment rates currently. That rate has actually trickled up in the past 12 months...even with announcement after announcement of auto sector hirings.
And, I think many of you can see why I am in a mood to sell my residence in this state and move on to a new way of thinking.
I often wonder what residents are even getting out of State income taxes. For instance in Fl we have no State income tax, but our neighbors in Georgia do have them. Their roads are worse than ours, their schools just as bad, their cops are like hawks that will get you for going five miles over because that's how theyre funded.....I don't exactly see where that income tax is going....
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