Toyota Relocating Corporate Offices To Texas

[mpholland]

Originally Posted by donquixote99

Who makes up your data for you? Tell them to do a better job.

The California state income tax has brackets, starting at 2% and topping out at 12.3% for income over $508K. See http://www.tax-brackets.org/californiataxtable

A single person with no dependents would, according to the tax calculator on that page, pay $4170 in states tax on an income of $75,000. That works out to 5.6%. Not 20%.

Not to mention that property taxes in Texas are about double, so if you sold a home in California for 300K and bought one in Texas for 200K, you are still going to be paying higher property taxes in Texas. Texas would still probably have a slight tax benefit to the moving employee, but it won't be as great as it looks if he buys his own home.

[Rajoo]

Originally Posted by mpholland

Not to mention that property taxes in Texas are about double, so if you sold a home in California for 300K and bought one in Texas for 200K, you are still going to be paying higher property taxes in Texas. Texas would still probably have a slight tax benefit to the moving employee, but it won't be as great as it looks if he buys his own home.

Property taxes are frozen in CA from the time of purchase (Prop 101). So if some one has lived in their home for several years, their effective property tax will be relatively low. So it may not just be a simple comparison of house cost and tax rates.