For anyone who has lived in New York City and got accustomed to the lifestyle and culture, leaving the city can feel like one of the most heartbreaking things to do.
It is no exaggeration to say NYC is one of the best cities in the world – the best if you’re born and bred! Unfortunately, for all its allure – the people, the cuisine, the nightlife, culture, entertainment options et al – life in the Big Apple doesn’t come for cheap.
So steep is the living cost that a recent study by WalletHub found that New York City has the highest tax burden in the country – tax burden, in this case, denoting the three types of state tax burdens: individual income taxes, property taxes, and sales and excise taxes.
It’s thus understandable that as much as we might want to stick around, the cost of living can feel like an albatross. There is no point living life on the edge financially, so sometimes it’s just best to pack up and look for a more viable alternative.
Indeed, there has been an exodus of New Yorkers fleeing the city in favor of more low-cost places over the last two to three years. Demand for moving and storage NYC services has particularly spiked since the outbreak of Covid-19 in early 2020, and the trend doesn’t look like it will be reversing any time soon.
So then, what are the best places in America for New Yorkers to relocate to that promise some of the lowest tax rates?
Here are our top 5 picks.
There is a reason Florida remains a popular destination state for retirees. And it’s not just about the great weather all year round.
The popular snowbird state may not be the cheapest due to its higher-than-national-average housing and cost of living, but it’s way more affordable than life in the City that Never Sleeps.
In terms of affordability, it stands at No.35, but it also boasts the fifth-lowest tax burden in the country at 6.82 percent.
Education is also the third-lowest among southern states.
Texas has become a popular destination state for many New Yorkers and Americans as a whole due to its affordable cost of living (ranks 19th nationwide – cheaper than Florida even).
More notably, though, the Lone Star State is famous for its no-tax policy on personal income. Sure, property taxes may be higher than in many other states, but the general tax bite in Texas is one of the lowest in the country.
What’s more, Texas has big, bubbly cities like Austin where New Yorkers will feel at home as there’s always something happening. Only that this time, the rent will be twice or thrice more affordable than in New York City.
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The second-least densely populated state behind Alaska has a tax burden that’s almost half that of New York (6.47 percent vs. NY’s 12.28%), ranking it fourth-lowest in the nation.
There are no personal or corporate state income taxes to contend with, property and sales tax are low, and there is no retirement income tax either.
New Hampshire is not just big on education. The 10th least populous state may have some of the highest property tax rates in the country, but it does not tax earned income.
For a state ranked second in the list of “Best States to Live In” by the US News & World Report, NH is as affordable as it gets for a New Yorker. State and local tax burden stand at 6.85 percent, the sixth-lowest in the US.
Residents of South Dakota fork out just 7.86 percent in personal income taxes, with the Mount Rushmore State standing at 11th lowest in the country in terms of the overall tax burden.
Home to a slew of major credit card companies, it ranks 14th in terms of affordability nationwide and came in at No.20 on the “Best States to Live In” list in the US News & World Report.