Buying A Home In Low-Taxed States
This ARTICLE On Buying A Home In Low-Taxed States Was PUBLISHED On July 2nd, 2020
Buying A Home In Low-Taxed States is now possible for remote wage earners.
- The coronavirus pandemic has changed American businesses and workers
- When the COVID-19 pandemic hit the United States in February 2020, many companies issued stay at home orders for all of their employees
- Only workers who can work remotely were employed
- Those who needed to report to work were furloughed or laid off if their jobs were non-essential jobs
- More and more jobs that traditionally were jobs that required reporting to work were now being transformed into remote positions
- More and more workers became remote wage earners
- States started to reopen beginning in late April
- More and more states are reopening in phases
- However, companies are not calling their workers back to work
- Instead, companies are instructing their employees to work from home
- A large number of companies are now transforming jobs to remote job positions
- By having remote workers, it is a win-win for both the company and employees
In this article, we will discuss and cover Buying A Home In Low-Taxed States.
Buying A Home In Low-Taxed States Is Now Possible For Remote Wage Earners
Some states have a higher cost of living than others. Higher cost of living states also has higher housing prices. Many counties in California have home prices that are double the prices of the median average home prices. Average home prices in California is $597,000 when average home prices in Tennessee is $297,800. Americans have spent more on taxes than food and clothing combined in 2018, according to the Bureau of Labor Statistic’s new data on consumer expenditures.
The Bureaus of Labor Statistics said the following:
“Consumer units” (which include families, financially independent individuals, and people living in a single household who share expenses) spent an average of $9,562 on food and clothing in 2018, according to BLS. But they spent $16,749 on federal, state, and local taxes.
See the chart below:
In 2018, the average tax bill in the United States came out as follows for an American worker:
- $7,819 in federal income taxes
- $2,098 in state and local income taxes
- $51 in other taxes
- $4,717 in social security taxes
- $2,065 in property taxes
The total average taxes paid by an average American worker turned out to be $16,749.
Amount Paid In Taxes Versus Spend On Food And Clothing
According to the Bureaus of Labor and Statistics, the average American spends an average of $7,729 annually on food in 2018. $1,833 was spent on clothing in 2018.
- This totals $9,562 spent on food and clothing for the average American consumer in 2018
- Compare these figures on how the average American consumer spent $9,917 alone
- $7,819 for federal and state income taxes and $2,098 for state and local income taxes
- This was more than the average expenditure of $9,562 for food ($7,729) and clothing ($1,833)
- The average gross income for an average American worker for 2018 was $73,573
The largest expense for an average consumer was $19,884 for housing. Out of the housing expenses, the average property tax bill was $2,065.
Benefits Of Buying A Home In Low-Taxed States
More and more remote wage earners are fleeing high taxed states like New York, California, Illinois, New Jersey to other low taxed states with lower cost of living. For example, Illinois has the highest out-migration rate in the country. Led by Democrat Governor JB Pritzker, Illinois has the highest tax rate in the nation. The state also has the second-highest property tax rate in the country right behind New Jersey. Illinois is faced with an incompetent governor, corrupt politicians, and no direction when it comes to finances. Pritzker has no other solution in fixing the state’s broken pension system other than to increase taxes. Pritzker has doubled the state’s gas tax, increased existing taxes in over 20 items, created new taxes, and is planning on changing the state’s flat-tax to a progressive income tax system. There has never been such a surge of businesses and taxpayers leaving Illinois than ever before. With the progressive system, higher wage earners will leave the state in droves. Many high-income wage earners can work remotely. Why would they live in Illinois when there are states like Tennessee, Florida, Texas, Nevada, and others where there are no state income taxes and property taxes are a fraction of those in Illinois. Moving to a lower-taxed state can get homeowners more home for the money. Home values do not appreciate in high property tax states such as Illinois and New Jersey.