Welcome to Texas!
Will You Be Better Off in Texas?
States with no income tax become a beacon for business growth. They tend to be more effective at creating jobs and maintaining a core of young, educated workers. The ultimate benefit to the individual really depends on the size of your paycheck. The larger the wage translates to a larger benefit from zero state income tax liability. As always, there are trade-offs. No income tax states typically have higher real estate, sales and gasoline taxes.
Moving to Texas?
Those who move into Texas from a state that has a high rate of income tax (California, New York, New Jersey, Hawaii, etc.) will find immediate relief since your employer will no longer be taking large chunks out of your paycheck as tribute to your state government. The higher your wages translates into larger potential tax savings.
Cost of Living
There are many other factors to consider as well. The cost of living in San Francisco (or LA or San Diego) is significantly higher than Dallas, Houston or San Antonio. Home prices variances are often shocking to the Californian researching Texas home prices. Free parking in Dallas versus $600 a month to park your car in San Francisco translates into much more savings than just what an income tax differential creates.
With a move to Texas, adjusting into the local scene and culture may take some time. Whether it is an expatriate assignment overseas or moving to another city, a typical adjustment phase runs about 6 months. It takes time to find a new dentist, doctors, dry cleaners and the like. Having local resources that provide guidance can be invaluable.
Have you experienced tornados, hail storms or fierce thunderstorms? Texas weather may take some adjustment. Texas soil does not allow for basements and underground storm shelters.
We offer resources far beyond the typical scope of an advisory and accounting firm. We have trusted referral resources from storm shelters, roofing companies, medical professionals, and real estate advisors to many other service areas. We are here to help the transition be smoother and more enjoyable.