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Where you sleep most
Where your spouse lives
Where your personal belongings are
Where doctors, clubs, churches are
Where you vote
Where cars are registered
Where your primary home is
You do not have to spend all your time in the new state — but you must:
Spend more time there than anywhere else
Spend less than ~45–60 days/year in CA/NY (practical safe zone)
Low-tax states require:
Physical presence
Proof of habitation
Local ties
High-tax states require:
Proof you actually left
People lose because they:
Keep their old home
Keep doctors & social life
Keep returning “for a bit”
Underestimate digital trails
Believe tax-planner myths
California in particular has a dedicated residency audit unit.
To gain low-tax residency:
Physically relocate
Buy or rent a real home
Change driver’s license
Register vehicles
Move voter registration
Change doctors & banks
Update estate documents
Sever social & business ties
Spend minimal time in former state
States look at cell phone pings, credit card swipes, flight records, tolls.
NC has a flat 3.99% rate, down from 4.25% last year. I didn't see it in the list.
Starting this year, Ohio has a flat 2.75% tax rate and the first $26K is excluded, which is nice. But Ohio is also one of the few states with municipal taxes on wages, typically 2.5%.
Still less than stupid CA taxes….Everything is less than stupid CA taxes. I wouldn’t live there unless I were homeless or too wealthy to care. It’s almost as if the state wants you in one category or the other.
declarethecauses says
Starting this year, Ohio has a flat 2.75% tax rate and the first $26K is excluded, which is nice. But Ohio is also one of the few states with municipal taxes on wages, typically 2.5%.
Still less than stupid CA taxes….
ForcedTQ says
declarethecauses says
Starting this year, Ohio has a flat 2.75% tax rate and the first $26K is excluded, which is nice. But Ohio is also one of the few states with municipal taxes on wages, typically 2.5%.
Still less than stupid CA taxes….
Yeah, but you'd have to actually live in Ohio.
Alaska – 0%
Florida – 0%
Nevada – 0%
South Dakota – 0%
Tennessee – 0%
Texas – 0%
Washington – 0%
Wyoming – 0%
New Hampshire – 0% on wages (taxes only interest/dividends)
States with the lowest top marginal income tax rates (among taxing states)
State Top Marginal Rate
North Dakota 2.5%
Arizona 2.5%
Indiana 3.0%
Louisiana 3.0%
Pennsylvania 3.07% (flat)
Ohio 3.5%
Iowa 3.8%
Arkansas 3.9%
Kentucky 4.0%
Colorado 4.4% (flat)
Mississippi 4.4%
Michigan 4.3%
Oklahoma 4.8%
West Virginia 4.8%
Utah 4.6%
Illinois 4.95% (flat)
Massachusetts 5.0% (flat)
Alabama 5.0%
Nebraska 5.2%
Georgia 5.4%
Maryland 5.75%
Virginia 5.75%
New Mexico 5.9%
Montana 5.9%
Rhode Island 6.0%
South Carolina 6.2%
Delaware 6.6%
Connecticut 6.99%
States with the highest top marginal income tax rates
State Top Marginal Rate
Minnesota 9.9%
Oregon 9.9%
Massachusetts (in some high brackets) 9.0%
New Jersey 10.75%
District of Columbia 10.8%
New York 10.9%
Hawaii 11.0%
California 13.3% (highest)