Property tax rates vary widely from state to state and sometimes even from one city to another. Recent changes to the federal tax code limit deductions for state and local taxes. If you live in an area where you pay high property taxes and you can’t deduct as much as you could in the past, you may be toying with the idea of moving to save money. That might be a wise decision in some cases, but you should also consider the possible downsides so you don’t wind up regretting your decision.
Employment Opportunities
If you have a secure job that you enjoy, you make good money and you’ve invested a lot of time to build your career, giving that up and starting over somewhere else might be difficult, especially if your job requires local knowledge and connections. If you could easily find another position in your field or stay with your current company and transfer to another location, moving would be less risky.
Effects on Your Family
Think about each of your children’s ages and personalities, and ask yourself how moving might affect them. If they’re attached to their friends and community, the transition could be hard. Relocating might not be a good idea now, but they might be able to better handle it in a year or two.
Community Ties
Moving might be a welcome change of pace, but you might miss your old community if you have spent years putting down roots and building relationships. You might be lonely without close friends and family nearby. On the other hand, if you have friends or family somewhere else and you don’t get to see them as much as you would like, moving could strengthen your bonds and improve your quality of life, on top of saving you money.
Consider a Short-Term Experiment
It’s difficult to anticipate how moving to a new community might affect your family. Any change can have unexpected consequences, both positive and negative. You might want to rent out your current home and rent a place in a low-tax area to see if you like living there before you commit to a long-term relocation. You could always move back home if things don’t work out.
Is Moving a Good Idea?
Deciding whether to move to an area with lower property taxes is complicated. There’s no right or wrong answer since so many personal factors can come into play. Discuss your specific situation with an accountant or financial planner and with your family. Carefully weigh all the pros and cons before you make a decision.
