Finance Blog

Stay financially savvy with the Equifax Advisor.

Sign up for our FREE Monthly Email Newsletter


Thank you for signing up for the FREE Equifax monthly newsletter

In addition to keeping in the financial know, you may be interested in checking your credit score and report.

Understand your credit. Help protect your identity.

Equifax Complete™ Premier Plan

  • Know What May Influence Your Credit Score and Be Alerted of Changes
    Credit score monitoring with custom alerts
    Important Disclosure: The Equifax credit score and 3-Bureau credit scores are based on an Equifax credit score model and are not the same scores used by 3rd parties to assess your creditworthiness.¹
  • Help Protect Your Identity
    Automatic fraud alerts encourages lenders to take extra steps to verify your identity²
  • Lock Your Credit
    The ability to lock and unlock your Equifax Credit Report³
Save 75% your first 30 days with the purchase of Equifax Complete™ Premier

$4.95 for the first 30 days, then $19.95 per month thereafter. You may cancel at any time; however, we do not provide partial month refunds.4

¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.

²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.

³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.

4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.

Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.

The Five States with the Lowest Taxes

Written by Susan Johnston on December 1, 2014 in Tax  |   No comments

While the state in which you live may not seem to make much of a difference when you file your federal tax return, some people, including retirees and entrepreneurs, decide to move for state tax purposes. The option to deduct state and local income taxes…

the-five-states-with-the-lowest-taxes-2While the state in which you live may not seem to make much of a difference when you file your federal tax return, some people, including retirees and entrepreneurs, decide to move for state tax purposes.

The option to deduct state and local income taxes or sales taxes on your federal return and the amount you pay in sales tax or state income taxes may affect your overall budget.

In addition, because state and local tax dollars typically fund programs such as education, transportation, public assistance, and law enforcement, states with low or no income tax rates may raise funds through other avenues. These can include corporate tax, sales tax, or tourism taxes on hotel stays and rental cars.

Here are a few tax reasons that people decide another state may better fit their budget.

Not all state tax rates are created equal

Earlier this year, the Tax Foundation, a national independent tax policy research organization,ranked all 50 states according to the annual state and local tax burden for 2011. A tax burden is the amount of income, property, or sales tax levied on an individual or business.

According to the Tax Foundation, these are the five states with the lowest state and local tax burdens:

1. Wyoming: 6.9 percent of income
2. Alaska: 7 percent of income
3. South Dakota: 7.1 percent of income
4. Texas: 7.5 percent of income
5. Louisiana: 7.6 percent of income

At the other end of the spectrum were Northeastern states such as New York and Connecticut, which had tax burdens of 12.6 percent and 11.9 percent, respectively. California also ranked fairly high, with a tax burden of 11.4 percent of income.

Moving to a state with lower taxes

Given the spread between taxes in some states, does it ever make sense to move from a high-tax state to one with lower taxes?

Maybe. Robert Zeigen, director at CBIZ MHM, a Florida-based financial and business services provider,says it’s fairly common for an entrepreneur or hedge fund manager to relocate to Florida, which has no individual income tax and a low corporate income tax. “Any high-net-worth individual who has a lot of taxable income could certainly benefit by moving to Florida,” he says.

Florida ranked No. 31 on the Tax Foundation’s list, with residents foregoing 9.2 percent of income—higher than No. 1 ranked Wyoming, but lower than the national average of 9.8 percent.

The potential pitfall with lower taxes is that the money you don’t pay in taxes simply gets absorbed into your daily spending without a clear goal in mind. However, if you create a plan for those funds, “You can build wealth more quickly, have more disposable income to spend on vacations or cars, or save for college,” Zeigen says.

(Read more: Learn how to help avoid paying hidden taxes)

What to consider if you’re thinking about a move

Of course, tax rates aren’t the only factors to consider when moving to a lower tax state. For Zeigen, there were “non-tax-related benefits that come with moving to Florida,” such as low housing costs and warm weather.

That’s also proven true for Gary and Ivonne Richardson, retirees who moved from California to Nevada earlier this year. Before the move, Gary carefully researched the tax implications. Nevada has no income tax, and sales tax is roughly the same in both California and Nevada, so he estimates moving will save the couple approximately $8,000 in state income taxes.

Because he and his wife will no longer deduct California income tax from their federal return, Gary predicts the net savings every year will be approximately $7,400. In addition to saving on income tax, the couple says many other expenses, such as utilities and trash collection, are also cheaper in their new home.

“Tax is important for me,” he says, “but the other items are more important for Ivonne, like going from a rural area to one where everything is close and there’s more to do.”

Here’s a look at a few non-tax questions to consider before moving to a new state for the lower taxes:

What kind of lifestyle do I want and does this state offer it? This was a big one for Zeigen and for the Richardsons. “Part of the reason I moved to Florida 30 years ago was the all-year-round lifestyle for my family,” Zeigen says. “We can be outdoors playing sports all year round.” Similarly, if professional sports teams or arts and culture are important to you, then you’ll want to seek out these offerings when deciding where to move.

What are the educational opportunities in the state? If you have kids, are considering having children, or want to further your own education, research the quality of the public schools and nearby universities.

What is my earning potential in the new location? If you’re still working, find out if jobs in your chosen industry are plentiful in your new state. Even if you have a job when you move, that may change, so consider whether you’d need to relocate again or if you could find a new job locally. Also research typical salaries relative to the area’s cost of living.

Moving to a lower-tax state might seem like a great option, especially if you have a high net worth or are currently or soon-to-be retired, but there’s more to consider than your tax rate. If you have nothing to do or are far from family and friends, that low tax rate might not be enough to keep you happy.

Susan Johnston is a Boston-based freelancer who has covered personal finance for numerous publications including Bankrate.com, the Boston Globe, Learnvest.com, Mint.com, and USNews.com. Find out more at www.susan-johnston.com.

The information contained in this blog post is designed to generally educate and inform visitors to the Equifax Finance Blog. The blog posts do not give, and should not be assumed to provide, personalized tax, investment, real estate, legal, retirement, credit, personal financial, or other professional advice. Before making any financial decision, you should always consult with the appropriate professionals who can explain your options, rights, and legal responsibilities, and advise you on any tax, legal, credit, or business implications that may result from those decisions. The views and opinions expressed by the authors of blog posts are their own views and may not be the views or opinions of Equifax, Inc. and/or its affiliates.

No comments yet

Leave a Comment

Name :

Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.

Tax Archive