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One way of saving a ton of money is to move to a low-tax area when you buy a home. If you’re wondering where to move for lower taxes, consider that you may be paying:

  • State and local income taxes
  • Property taxes
  • Sales taxes

One way or another, you’re taxed at the federal, state, county and city levels. This article tells you where high taxes are chasing people away, and where homeowners are heading.

Verify your new rate (Oct 6th, 2018)

Study provides clues about where to move for lower taxes

A new report from Redfin shows there’s a growing trend of people moving out of high-tax markets and into lower-tax markets. Part of the reason may be that tax legislation, passed last year by Congress, created a greater tax burden for many of these folks; new tax laws cap mortgage interest and state and local tax deductions.

Redfin ranked the top 10 high-tax metros by net outflow of users and their top destinations:

  1. San Francisco—27,849/16,745 (net outflow in 2nd quarter 2018 vs. 2017); Sacramento/Seattle (top destination vs. top out-of-state destination)
  2. New York City—23,559/15,644; Boston
  3. Los Angeles—13,370/13,109; San Diego/Phoenix
  4. Washington, D.C.—5,900/5,499; Philadelphia
  5. Chicago—3,428/2,366; Phoenix
  6. Denver—3,007/338; Colorado Springs/Seattle
  7. Milwaukee—787/226; Chicago
  8. Houston—336/317; Austin, Texas/Chicago
  9. Eugene, Ore.—288/-201; Portland, Ore./Seattle
  10. Detroit—263/309; Chicago/Chicago

Redfin revealed that the average local tax burden was three times lower in the top-10 migration destinations listed above than in the 10 markets people are most commonly departing. The average local tax burden is a relative measure of a county’s average sales, income, and property tax rates.

Where to move for lower taxes

Redfin also ranked the top 10 lower-tax metros by net inflow of users and their top origins:

  1. Phoenix—6,349/3,849 (net inflow in 2nd quarter 2018 vs. 2017); Los Angeles (top origin vs. top out-of-state origin)
  2. Sacramento—6,208/4,833; San Francisco/Seattle
  3. Atlanta—5,111/2,767; New York City
  4. Las Vegas—3,786/3,509; Los Angeles
  5. Portland, Ore.—3,614/1,190; San Francisco
  6. Austin, Texas—3,212/1,655; San Francisco
  7. Dallas—2,979/2,036; Los Angeles
  8. Miami—2,575; 1,746; New York City
  9. San Diego—2,537/5,286; Los Angeles/Seattle
  10. Nashville—2,462/1,364; New York City

Redfin surveyed buyers and found that:

  • 8 percent shifted their search to a state with lower taxes because of the new tax law
  • 9 percent shifted their search to nearby cities with…