Washington/Seattle - robust tech industry, pays same as the bay area, cheaper RE, rain sucks
Texas - robust tech industry, pay cut, cheap RE, too hot in the summer
Florida - minimal tech scene, pay cut, cheaper RE, beach
Thinking of moving? If you would end up in one of those three places eventually, better to go there early rather than later.
Seattle/ Washington - Too much rain. Very cold winter.
Tampa or Miami or Orlando/ Florida - Might as well go back to Singapore
Austin/ Texas
Pay cut? I think the pay would be about the same as Bay Area for all the three places in a few years when WFH is in full steam… Covid has opened the eyes of many employees that WFH is
Yes. Right now, Seattle is the top choice just from the proximity and robust tech sector perspective. Florida and Texas, I know those area as I have some assets and I’ve lived in those area before. Not a big fan of Texas…too damn hot and not much to do. Florida…beach is nice but too far away from major tech sectors.
Before moving to Austin, my family went to Seattle to survey (have a relative staying there). The cold and rain are too much for me.
That is, I have gone through the same debating as you. Final decision would be personal to you or your super duper significant other your nature and hobbies.
Tennessee doesn’t tax regular income and Nashville is booming.
The tech scene in Seattle is really strong. Pay should be same as SV if you negotiate. Companies don’t expect you to take a pay cut. Pay in Seattle seems to be 10-15% higher than on the Bellevue side.
Btw house prices are up in Seattle too, a friend of mine bought in 2014 for $580K, current price is $1.2M. He is in management in Msft and his wife is a doctor, point I am making is you might be competing for a house with people with resources and in the process house prices are being pushed higher.
Yep, we have been looking and it’s well within our range. It seems to be 40-60% cheaper than the bay area too for now (per sq/ft). We might just rent a year to get to know the area better before purchasing though.
Moving out of state, you need to compromise your friends and location, but the max you save is state tax (10%). If you buy real estate at new location, you may be paying high too.
For example, I saw excellent homes at CAMAS, WA for $350k (4000 sqft newer home) - $400k range during 2008-2011. This will save both state tax & sales tax (portland border), but we will perm. leave SFBA. Now,same home costs $900k+
We went to other options, converted all retirement savings Roth IRA/Roth 401k. Yes, paid taxes too, but growth is completely tax free hereafter and we can stay in anywhere we want.
During May 11 & 12, my accounts jumped 20% and 37% on trading, none will be taxed ! Go for Roth if you have such retirement accounts during your earning period.
Well, as I mentioned, we also have stock options and potential IPO windfall, so those are not easily avoidable. In terms of friends/families, we have plenty in Seattle area so it’s fine. RE wise, we don’t plan to sell our California REs and likely purchase a new one there (maybe a much bigger lot outside of major area). Need to do more research especially after this capital gain information.
That’ll get over turned by the lawsuit. It’s against the state constitution. They always try stupid stuff, and they always lose. There’s a law firm in Bellevue that always wins the cases to over turn.
California has 10 personal income tax rates, ranging from 0% to 13.3% as of 2020. The highest rate of 13.3% begins at incomes of $1 million or more for single filers as of 2020. This increases to incomes of $1,181,484.00 or more for spouses or registered domestic partners who file jointly. The 13.3% rate is referred to as the “millionaire’s tax” and is an added 1% surcharge over the 12.3% rate for other taxpayers.
By leaving CA, @pastora would save 13.3% on state income tax.
California tax law includes no special provisions for capital gains tax, so the state doesn’t give you a break for long-term gains on assets you hold onto for over a year unlike federal law. You’ll pay taxes on your profits at your personal income tax rate regardless of the duration of ownership if you sell any property or asset for more than your tax basis or investment in it.
By leaving CA, @pastora would save 13.3% on state capital gain tax.