Tax depression this morning. A frantic New York acquaintance of mine, nearing retirement, advised: "I stumbled across a couple of articles detailing the tax burden I am subjected to in NY as compared to other states." He was plunged into deep despair. Between state income and property taxes, he can't see how he can afford to stay in upstate New York in retirement. He plugged numbers into a state-by-state comparison based on his current salary and property valuation, and claims the difference is staggering. Given the same value home, he could be saving $15K a year on property taxes compared to states like SC, FL, or TN. Income tax is even more egregious, especially compared to no-tax states, with those figures reaching another $50-60K on top. Even with projected income reductions in retirement, he projected a total of $30K in savings in more tax-friendly locales. In retirement, that is real money! He angsts over leaving his hard-earned family homestead, his dispersed children and friends in the vicinity, but New York makes it difficult to stay.
His plight rings true for all of us who live in Blue States, who are similarly taxed to the point of considering migration.
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