Demographics are changing for remote workers – including income taxes and lifestyle changes
Where we live has been dictated by where we can find a good job. This truism has defined much of where Americans reside – clustered in and around lucrative labor markets. Working remotely isn’t just an added perk in a benefits package, it’s the ability to move freely while continuing the same career, ideally with the same company and salary. One of the reasons people are looking for remote positions after the pandemic is to have the option of moving to cheaper and less populated areas.
America’s ‘superstar cities’ are lucrative job markets – but the price of entry has become the outlandish price of housing expenses. Housing prices have skyrocketed in these locations as supply has dwindled due to a lack of inventory in the real estate market.
According to a recent study by moving company United Van Lines, fewer people were moving because of work, possibly due to the growing prevalence of remote working. Less than a third of Americans moved for a new job or relocation last year, down from more than 60% in 2015. The moving company’s 45th annual report on customer migration patterns revealed that nearly 32% of Americans who have moved have done so. get closer to his family. Of the 10 states with the highest inbound movement percentages, eight are among the 25 least densely populated states in the country.
“My company was headquartered in San Diego and I lived in a high-rise in Little Italy. During the pandemic, it became very difficult to work in a 1,500 square foot box with two dogs and a woman. We thought that it would take two weeks to a month to reduce the curve [in early 2020 when the COVID-19 lockdowns occurred] so we decided to go down to Palm Springs and rent an Airbnb for 60 days,” says Bill Lyons, CEO of Griffin Funding. “I realized that I could be the CEO of the company and still run it effectively by working remotely, so we bought a house in La Quinta. weren’t built for the scorching 120 degree heat, so we started looking for somewhere less crowded than San Diego with opposite weather. Lyonnais discovered Lake Tahoe and fell in love with Incline Village. “People are super friendly. This is one of the most amazing places I’ve been to.
There’s not as much appeal in paying top dollar each month for, say, a rental in California, when you could potentially own a large house for the same amount in many other states. And when you move, you take your family and your demand for services with you to these new places, opening up opportunities for other workers and, at the same time, probably reducing the amount of tax on your income, all in the even U-Transporter.
While people across the United States pay federal income taxes, depending on where you live you may also be subject to state income tax. Among the states that assess personal income tax, the rates vary widely from state to state. And there are two different ways to tax them: flat tax rates and graduated tax rates (also known as graduated rates). States with a flat tax rate collect the same percentage of income from everyone, regardless of income. On the contrary, states with a progressive tax rate collect progressively higher portions of residents’ income as their income level increases.
The states with the highest income tax rates all have progressive tax rates: California (13.30% top marginal tax rate), Hawaii (11% top marginal tax rate) , New Jersey (top marginal tax rate of 10.75%). The states with the lowest income tax rates are a mix of flat and graduated tax rates: North Dakota (top marginal tax rate of 2.9%), Pennsylvania (flat tax rate 3.07%) and Indiana (flat tax rate of 3.23%). Taxpayers who itemize their deductions can deduct state income tax on their federal tax returns. The Tax Cuts and Jobs Act of 2017 set a deduction limit of $10,000 ($5,000 if your filing status is married and filed jointly) for state and local taxes, including income taxes, sales and property. Griffin Funding always recommends consulting a tax accountant.
There are a total of nine states that are exempt from income tax. Griffin Funding Bayside is permitted in bold:
Here is a list of low-income states in which Griffin Funding Bayside is licensed (which are below CA at 13.3%):
Whether you’re interested in buying a new home for your family in another state to maximize your income or lifestyle, or you’re using a DSCR loan to purchase rental property without income or tax verification necessary income, Griffin Funding Bayside has what you need! Contact us today if you have any questions about financing your next home!
Contact us online or call us at 619-393-8458 to speak with one of our experienced loan specialists! Griffin Funding Bayside is licensed in 14 states nationwide (and growing)!