RYAN CHARLICK, Realtor | FRANKLIN, TN.
When we were considering the to move to Franklin, TN. from California our conversation usually circled back to cost of living and quality of life.
Don’t get me wrong, California is a great place to live, but it is a bit expensive to live there. Ok, not a bit expensive. Really expensive. I am currently working with two clients that are moving from California here to Franklin, TN. and one of the biggest considerations is the money drain of property taxes, income taxes, gas taxes, car registration taxes… The list goes on, but you get the idea.
We joke and say we got a raise by moving here and we kind of did by not having to pay as many taxes.
I mentioned in my first blog post the areas the most people are moving to Nashville from. Not coincidentally, 3 of them also have the highest taxes.
This is a great article that uses income, sales, property and gas taxes to get an estimated tax as proportion of income. You may find it very helpful in your quest of comparing state by state tax burdens
Tennessee fairs pretty well at 18.7%, compared to the big 4:
New Jersey – 27.11%
New York – 25.46%
California – 24.53%
Illinois – 23.82%
The lowest is Montana at 14.54. Beautiful state but really cold in the winter.
Simple math says that’s anywhere from a 5.12% - 8.41% savings. And a bonus of warmer winters than 3 of 4 of those states.
Personally, we found the actual numbers much higher. More along the lines of up to 20%.
There is also this to consider. College is getting…ok IS, really expensive. Tennessee has an initiative called Drive to 55. This allows graduating high school seniors to attend any community or technical college for free. I don’t have kids, but that is a good deal. Tennessee is one of 24 states that have a program like this.
Illinois & Michigan don’t and they have high property taxes and they have cold winters…..Michiganders and Illinoisans call me and let’s get you moved down here before TN gets full.
If you are reading this and live in of the big 4 states, you already may know that taxation in your state is higher than all other states. (We know we felt the pain when we lived in California)
If you are reading this and want to move from Illinois, New Jersey, New York, California or any other state give me a call or text and let’s get started. Your new home awaits you in beautiful Middle Tennessee. And getting to save a lot more of your hard earned money each year is not such a bad thing.
