Financial Benefits of Moving to Washington State
The Pacific Northwest is a beautiful place to relocate to, especially if you’re someone who loves the outdoors. Living in Washington state comes with a lot of benefits that go beyond good coffee and amazing views. This state offers large metropolitan cities and small towns, creating the perfect balance of environment for those who prefer to have options. Washington is also a great state to consider relocating to if you’re looking for tax advantages that will help you save more on what you make.
Tax Benefits of Living in Washington State
Washington has no state income tax, which allows residents to get more and save more from each paycheck. This is also one of the few states in the United States that does not have a personal or corporate income tax.
You may wonder how this is possible and whether there is a catch to this useful benefit. A couple of cons that Washington residents do experience is higher gas prices and higher sales taxes. However, paired with lower property taxes and a cap on inheritance taxes (if your estate is less than $2.193 million, you pay zero), this all ends up evening out.
Retirement in Washington State
Washington is on our list of one of the most tax-friendly states for retirees. The state doesn’t enforce a tax on Social Security, pensions or distributions from a retirement account, such as a 401(k) or IRA. You can withdraw money to use for your retirement without having to hand over additional money to the government.
To qualify for these tax advantages, you’ll need to establish a domicile in the state. Moving to Washington is the first step. You’ll also want to look into establishing new relationships with people and organizations in the area like health care professionals, church groups or clubs and filing for address changes on important accounts and documents. Use our guide on relocation advantages to understand the basics.
If you are considering a move Washington, be sure you understand what you need to do to establish domicile in Washington state by downloading our checklist.
The views expressed are for commentary purposes only and do not take into account any individual personal, financial, legal or tax considerations. As such, the information contained herein is not intended to be personal legal, investment or tax advice. Nothing herein should be relied upon as such, and there is no guarantee that any claims made will come to pass. The opinions are based on information and sources of information deemed to be reliable, but Mariner Wealth Advisors does not warrant the accuracy of the information.
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