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This is not what I found. I am a CPA and did a thorough tax analysis and although there was a small difference, it was not significant. Our analysis was based on SW FL near Naples and western NC. I would do a complete tax analysis for your particular situation. Many people assume that since FL has no state income tax that their total taxes will be much lower; this may very well not be true in every situation. Regardless, NC or FL, for us really a no-brainer..
The person was asking about tax burden. They pay $0 income tax in FL and will pay over $11,000 in NC. That is already known. The unknown will be what will they pay in taxes on the house they buy in NC compared to the one they have owned for many years in FL. They have owned a house in FL for many years and have it homesteaded, so the tax value (resulting actual tax) is well below what it would be if they bought a house there for the first time this year. So when they buy a house in NC, they will lose that tax advantage on the house they held for many years in FL and will start from scratch in NC. That will be the main deciding factor on tax costs. It's highly unlikely, no make that absolutely no chance any reduction in other taxes in NC will compensate the more than $11,000 they will lose by having to now pay income tax. A person buying a first time house in FL and NC can easily compare first year taxes on that house. What makes it harder is when you have homesteaded a house in FL for many years, as you never experience the same increase in taxes that happened all those years. Someone owning a house in FL for more than 10 years will be paying significantly lower taxes on it than someone who just bought it this year.
Of course none of it matters at all if you have the budget to pay whatever and you don't like where you live. In that case, you just move to where you want to live. If you get paid more to work in NC than FL, that can make up the difference.
I believe the rate here is now 5.25% with a $21,500 for married filing jointly. So you're at 200,000-21,500*5.25% for $9,370.
In Raleigh, let's just say 1% property tax rate...every municipality varies a bit. For a 1 million house, that is $10,000.
I won't even get into car taxes because I have no idea how FL does it and I mean, the bigger numbers above are more vital.
Keep in mind they did not say they make $200,000 even. They stated $200,000+. In other words, greater than $200,000. So the number you came up with will be great for the minimum to start with, but may be much higher depending on how much above $200,000 they actually make.
So we just learned of the State Income tax of 5.25%(Florida has zero state income tax)
My question is, will my total tax burden truly be an extra like 11k, or are there other factors in play
What are the FL real estate taxes like for you? Sales tax?
What taxes (&fees) do you pay vs what services you receive ... do they align?
Yes, we do have car taxes here! However, the car insurance in FL can be sky high. Get quotes on car insurance before you come here, you might be pleasantly surprised on that aspect.
Keep in mind they did not say they make $200,000 even. They stated $200,000+. In other words, greater than $200,000. So the number you came up with will be great for the minimum to start with, but may be much higher depending on how much above $200,000 they actually make.
They also said they would be taking a 40-50k pay cut to move here. That will have more of an impact on financial quality of life (even with the lower tax burden of lower income).
Yes, we do have car taxes here! However, the car insurance in FL can be sky high. Get quotes on car insurance before you come here, you might be pleasantly surprised on that aspect.
I imagine homeowners is through the roof. We moved to NC from the Gulf Coast and both homeowners and car insurance are significantly lower in NC
I imagine homeowners is through the roof. We moved to NC from the Gulf Coast and both homeowners and car insurance are significantly lower in NC
Yes, that’s a good point to consider too.
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