[sickofnewyorkcity]

Hi all,

If one moved from NYC to Stamford, CT, does one save money on taxes?

I would think so as one would no longer have to pay city taxes. In CT, you only pay federal and state?

The city taxes in NYC are ridiculous and much of the money is wasted.

Can someone relay if I am right or wrong?

Thanks

[AntonioR]

Yes, NY is ridiculous when it comes to this. I'm not saying that CT isn't ridiculous when it comes to taxes too, its simply less than NY. We do pay federal and state income taxes.

[MikefromCT]

Much of what you described in NYC can be found here: high taxes, state income taxes (much of which is decidedly wasted and not spent wisely), and even your car is assessed a property tax. Connecticut may offer a comparatively lower cost of living if you look solely at basic living expenses, but overall the taxes IMO that you pay offset many of the things that may make this state look like a bargain. Connecticut residents are, quite simply, the most beleagured taxpayers in the country, and what's worse is many people see nothing wrong with this and don't see what all the fuss is about. Yes, our quality of life is high and incomes are higher than the national average, but we pay dearly for it, arguably more than we need to.

[JayCT]

I do not agree entirely. When you compare all of New York State to all of Connecticut, tax wise they are close. But remember that when they make this comparison they include the less expensive sections of NY that are upstate. To compare New York City to Connecticut though, as the OP requested, you will see that taxes also are lower here. Jay

[willow wind]

If you live in CT and work in NYC, you will be taxed for both NY state tax and NYC tax on any wages earned in NY state/ NYC city. You will be taxed in CT for all earned income. Then you'll file in CT for a tax credit for the NY state/ NYC tax withheld.

The actual formulas used are very confusing. Consult a tax professional before making any decision.

[sickofnewyorkcity]

Originally Posted by willow wind

If you live in CT and work in NYC, you will be taxed for both NY state tax and NYC tax on any wages earned in NY state/ NYC city. You will be taxed in CT for all earned income. Then you'll file in CT for a tax credit for the NY state/ NYC tax withheld.

The actual formulas used are very confusing. Consult a tax professional before making any decision.

I live in Brooklyn and worked in Stamford for UBS. I was taxed by both, but I got all the money from CT back as I am a NY/NYC resident. I assume if I was in CT (and established CT residency) and working in NYC, then I would get all the NY/NYC tax money back. I think it is illegal to be taxed twice.

[7 Wishes]

At one time, CT was a real bargain as it had no state income tax. It's why a LOT of companies moved from NYC and even Westchester to Greenwich, Stamford, and beyond (i.e. Norwalk, Danbury) during the 70s and 80s. But that was changed in 1991.

Overall, it is pretty close. In CT you pay a property tax on your car, which you don't in NY (you do indirectly through a "use tax" once every 2 years when you renew your registration, but it's not much, I paid < $100 on my car). It's nothing like a home's property tax, but it's usually several hundreds of $$$ per year or more, you can find lots of threads on it in this forum.

CT state income taxes are high compared to most of the US, but lower than NY. Another option is to live somewhere in NY that is near NYC like Westchester or Nassau County on Long Island, but if you own your home, property taxes are higher than in CT (CT property taxes are lower than Long Island and most of the adjacent parts of NY state, but generally higher than in the 5 boros themselves).

Hope that helps, good luck!

[Wilton2ParkAve]

I wouldnt go so far as to say its pretty close 7. My property taxes would surge to 45,000 per year from approximately 1/3 that amount here in Wilton. my car taxes are about 2,000 on three autos (two high end)- so the property tax differential brings much higher pain. On those taxes alone I come out ~28,000 ahead in CT.

From an income tax standpoint, ny and ct have a tax treaty to avoid double taxation. You essentially pay the rate of you resident state. I live in ct but work in nyc. in this case I pay 6% to ny/nyc- but nothing to CT. In the reverse situation, a ny resident would pay up to 6% (highest bracket) to CT but still be on the hook for the balance of the nyc/ny state bracket to ny tax commissioner. Nyc brackets top out above 10%- and can exceed 9% for those living elsewhere in nyc. I basiclally save 4% on each dollar earned by living in CT. it can really add up- and the car tax has a de minimus impact. Dont believe any arguments to the contrary.

[7 Wishes]

Originally Posted by Wilton2ParkAve

I wouldnt go so far as to say its pretty close 7. My property taxes would surge to 45,000 per year from approximately 1/3 that amount here in Wilton. my car taxes are about 2,000 on three autos (two high end)- so the property tax differential brings much higher pain. On those taxes alone I come out ~28,000 ahead in CT.

From an income tax standpoint, ny and ct have a tax treaty to avoid double taxation. You essentially pay the rate of you resident state. I live in ct but work in nyc. in this case I pay 6% to ny/nyc- but nothing to CT. In the reverse situation, a ny resident would pay up to 6% (highest bracket) to CT but still be on the hook for the balance of the nyc/ny state bracket to ny tax commissioner. Nyc brackets top out above 10%- and can exceed 9% for those living elsewhere in nyc. I basiclally save 4% on each dollar earned by living in CT. it can really add up- and the car tax has a de minimus impact. Dont believe any arguments to the contrary.

Being in the "reverse situation" you describe, here's what happens to me:

1) CT tax is withheld, not NY (though I also have a small p/t NY job where obviously only NY tax is withheld; it's not, nor do I live in NYC or Yonkers so no city income tax to deal with, though I believe the NYC income tax only applies to residents, with the "commuter tax" removed a couple of decades ago)

2) I have to fill out 2 state tax forms, with CT assuming tax at a "non-resident" rate (filled out on a special "non-resident" form).

3) But when I fill out my NY state tax form, they deduct the taxes withheld from CT. That's how I think in that instance the "tax treaty" works. For the OP, I don't know how the NYC tax factors in when he worked in Stamford.

I wasn't saying the "car tax" makes CT more expensive tax-wise, just noting it so OP isn't shocked since it doesn't really exist in NY (nor in NJ). As for property tax, I was thinking vs. NYC itself; Westchester has IMHO by far the highest most insane property taxes in the entire US and no argument with you there. But for some reason, property taxes in the actual 5 boros are among the lowest in the tri-state area (NJ suburb property taxes generally fall somewhere between non-NYC NY and CT, but closer to the former so still quite high) so I was comparing it to that since he/she is comparing directly living in NYC tax-wise to Stamford as opposed to throwing say White Plains in the mix. For example, I know someone in a relatively nice part of the Bronx paying $5K/year in property taxes that in even a not-so-nice part of Westchester like Mt. Vernon or Yonkers would pay about $12-15K/year (and in Yonkers they would also have a "city income tax" like NYC).

[Wilton2ParkAve]

Nyc property tax is cheap since you generally living in a tiny apt or lot. What resources are you taxing living in high rises. 3 acres And 5000 sq feet within the fice boroughs would probably match westchester or at least connecticut.