Considering Relocating to Texas?

The 2017 Tax Cuts and Jobs Act (TCJA) changes have spurred interest for many in relocating to Texas due to the tax advantages. TCJA limits the deduction for state and local taxes on personal tax returns to $10,000. In addition to the loss of the state and local tax deduction, states have been increasing their personal income tax rates over the years. This is especially costly to residents of high-tax states, such as New York, New Jersey and California, where the loss of this deduction adds an additional expense of 37% on any state income taxes over $10,000.

For example, if your property, state and local taxes total $100,000, you would have to pay an additional $33,300 in federal income taxes ($100,000 – $10,000 x 37%). Relocating to a low tax or no income tax state could substantially lower or even eliminate this extra tax burden.

If you are considering a move, be sure you understand what you need to do to establish domicile in Texas by downloading our checklist.

Unsure if relocation is right for you? Our wealth advisors can assist with helping to determine if relocation is the right tax strategy for you. 

Download Checklist