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Home  >  accounting in austin  >  The Disadvantage of Moving to a No-Income-Tax State

The Disadvantage of Moving to a No-Income-Tax State

Posted on Monday, July 1st, 2013 at 4:39 pm.

Transferring to a state that doesn’t impose income taxes may seem like a way to have much higher take-home pay, but it can actually cost you more in back taxes and penalties, according to CNNMoney.

According to the law, former residents of a state must live no more than 183 days in their former states to prevent paying taxes in that state. States most notorious for pursuing former residents who have moved to no-tax states like Florida, Nevada, Texas, South Dakota, Washington, Wyoming, and Alaska are New York and California.

One way to avoid complications, CNNMoney said, was for no-income-tax state movers to immediately change their driver’s licenses, car and voter registrations, and mailing addresses.

States that experience the lowest rates of financial intrusion, such as taxes and regulatory obstructions, tend to have high economic growth rates, a new economic freedom index showed.

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