Understanding State Income Taxes and Global Tax Planning for Expatriates (Part I of II)
Assets and income earned in high tax states such as California and New York, are taxed very differently compared to low-tax states such as Texas, Nevada, Florida or Tennessee. Focusing on “expatriation” (e.g., renouncing USC or abandoning LPR status) of the individual might be misplaced if the person wants to live mostly in the United States. See earlier post, Form 8854 Filing: TIGTA Report Reveals Compliance Gap
To better understand how state income tax rates effect behavior, see the Tax Foundation report: Americans Moved to Low-Tax States in 2023.