Any point to working in Memphis but RENTING in Miss.?(Southaven, income tax, residency) (Germantown: sales)

[innovator82]

I am a young professional who might be taking a job in Memphis. I will be renting an apartment with the hopes of buying a house in a/b 1-2 years. From what I read on these posts the benefit of TN is no income tax while MS is more house for the money. But as a renter not having to worry about a mortgage or property taxes, wouldn't it just make sense to rent in TN and avoid having to pay a state income tax? Would there be any reason to rent in MS, which I assume would mean paying MS income tax (such as are the rents much cheaper in Southaven than Cordova or Germantown areas)?

I guess my concern is that I don't want to establish myself in a TN town now and then have to move across the state line in a few years to get a house that I want. If I get involved in a ton of Tenn-related groups I wouldn't want to have to start over in Miss or vice-versa.

[ear455]

Well, you pay the income tax based on where your job is. Since you are working in Memphis you will not be paying income tax. Mississippi has a lower sales tax, but a higher car registration tax. It is a give and take basically wherevever you liver. Southaven will probably be cheaper than Cordova, Germantown especially, and will be just as safe.

[scottv]

You going to work for Smith & Nephew or Medtronic? just curious, I know a good amount of people come to work there from SC/Clemson.

Anyway, you being a young professional, I would say you should look into living in Memphis. I have friends who live on Mud Island/Harbor Town and the downtown social scene is pretty good for young people. I live in Nashville but grew up in Memphis and still have a lot of friends there - if I lived in Memphis I would want to live either downtown, midtown, or off Poplar Ave pretty much all the way out to Germantown/Nonconnah/Collierville area. MS is a good option if you want to get a huge house for the money, but it's a little out there in my opinion if you're young and single and like to mingle, haha.

[Dd714]

Originally Posted by ear455

Well, you pay the income tax based on where your job is. Since you are working in Memphis you will not be paying income tax. Mississippi has a lower sales tax, but a higher car registration tax. It is a give and take basically wherevever you liver. Southaven will probably be cheaper than Cordova, Germantown especially, and will be just as safe.

no, you will still be paying MS income tax.

[pixiepony]

yup, you pay based on where you LIVE, not work. it gets very confusing. There are other fees in MS too. The property taxes are lower, how-ever, vehicle registration is pretty high. To REALLY figure out the best bet you'll have to pull up info on ALL taxes (property, vehicle, grocery, liquor, income, ect ect ect_). Most people believe that it basically evens out no matter where you are. IE: no state income tax, but higher sales tax. It really just depends.