A Look Into US Cities Where Homes are Cheap and Income is Tax-free

US City Harbour with blue sky

Those who plan on moving into another state, where home prices are cheaper and there are no income taxes, should consider some cities in Florida, Nevada and Texas.

Before you become interested, it’s important to ask quotes from moving companies for national or long-distance relocation to any of these cities. Some companies may consider moves to be cross-country transfers when the distance covers more than 100 miles. You should expect to spend around $1,000 on average per room when planning to move out of your home state, although this rate could easily increase during summer when the demand for moving services are high.

Best Cities In Florida to Buy Homes

The forecast average home price in Lakeland, Florida would cost around $162,000 for 2019, up by 7.4% year over year, according to an analysis. It ranked Lakeland on the fifth spot in 2018, but it replaced Las Vegas at the top spot mainly because of the cheap homes.

You could even buy a new three-bedroom, two-bathroom house for approximately $180,000, while condominium units and townhouses may cost at least $110,000. As Florida has no personal income taxes, many have been keen on moving into the Sunshine State especially those with six-figure salaries. Some of these people even come from as far as California and New York.

Miami may not be as popular as Lakeland, but this is the target destination of many senior citizens. Retirees won’t likely mind paying around $267,000 on an average home in the city if it means having zero taxes on their income.

Other Tax-Free States

city line in texas

Nevada and Texas are some of the other states where income is tax-free, and homes are particularly cheaper in Las Vegas and El Paso, respectively. Las Vegas dropped to the 7th best city from being number one in 2018, but demand has picked up slowly because of low mortgage rates and cheap cost of living aside from affordable homes.

You could buy an average house in the Sin City for around $278,000, although be ready to spend more than $350,000 for properties in good neighborhoods. Bids and be competitive and listings often disappear from the market within a few days. In El Paso, real estate agents said that some people are moving into the city to take advantage of authentic Mexican cuisine, all while having more options for low-priced houses. You could buy a new three-bedroom, two-bathroom house from $150,000 to $165,000.

Tennessee is another state where personal wages are almost tax-free except for income earned from dividends. If you plan to move from Georgia, you should consider relocating to Chattanooga since this is just located along the two state’s borders.

Starting a new life in another state requires a lot of careful thinking, not to mention a large budget if you need to move a lot of stuff. You could score cheaper rates when planning a move during winter months, but plan ahead because the weather can make it riskier for road travel. Where do you plan to move if you have the money and time?

 

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