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This year I did my own taxes since I had no issues with needing to file taxes in multiple states, rental property, etc.

After doing the Federal and Arizona state taxes on FreeTaxUSA I wanted to compare my AZ taxes to some other places. I lived a good chunk of my life in Maryland which I knew had higher taxes, although lower sales tax. My rough estimate is for my income in 2025 my roughly $2,500 income tax in AZ, it would have been over $10,000 in Maryland. I looked around and PA would have been lower since they don't tax most pensions, social security (not collecting, yet), IRA withdrawals.

I was looking at New Hampshire which has no income/sales taxes but the property tax is high and basically would been in the $6-10K range.

PA does have an inheritance tax and depending which district you live in, the school tax can be high.

If I were to move elsewhere (the summers here are getting to me), it would likely be PA.

Obviously there are more important things than state taxes but it can definitely cause you to think twice. For me, I don't think I would want to pay an extra $1K a month to live back in Maryland despite having a lot of friends and a few family members back there.

Rich

PA does have an inheritance tax and depending which district you live in, the school tax can be high.

If I were to move elsewhere (the summers here are getting to me), it would likely be PA.

I love PA, having lived there off and on about 20 years. Even sold real estate there. Be aware, since the summers are getting to you in MD, not all of PA is a treat in Summer. The Philadelphia area can be very hot and muggy, but we loved Pittsburgh, which we spent 7 summer weeks in a few years ago. Winters are a different story in Pittsburgh. Since climate seems to be important to you, compare where you live with where you are considering at weatherspark.com. Really fun, at least for those of us looking for a better climate, giving you the ability to compare multiple locations based on multiple climate data points.

Also understand that there is a tax game that can be played in PA, and most Realtors have no clue how to do so. The newer the house you buy, the higher the taxes will be. I once saved a client $5K/year in taxes, just by encouraging them to buy a 5 year old home, rather than a new purchase. They could have saved another $7k/year in taxes had they been willing to live in a different but comparably good school district. Many tax differences in PA from township to township. Make sure your agent understands that taxes are important, and understands how to mitigate their impact on you.

Also, watch out for real estate transfer taxes, which are locally based. Typically split 50/50 buyer/seller, they can range from 2-5% of property value. Be aware of this big cost.

Good luck, tough to have so many choices. We are kind of going through the same thing, and have come to the conclusion that finding a 4 season location is hard, but we are at least looking for a three season home. Where we are now I currently don't like Hot and Muggy Summer and cold winters. If I only have to run away from home for one season, that would be a huge improvement.

IP

I moved from Texas to Washington State (just across the Columbia River from Portland OR) 20 years ago.

Both Texas and Washington state lack a state income tax.

Texas and Washington have similarly high state sales taxes, but if you live close to the Oregon border, there's no sales tax in Oregon. (Of course, if you buy a boat or an automobile in Oregon, you'll pay Washington sales tax when you register it in the state.)

Real estate taxes are half or less in Washington vs. Texas.

And the real eye opener -- my mortgage sized monthly health insurance premium in Texas dropped by 60% upon moving to Washington. (The state insurance commissioner in WA State is an elected official accountable to the voters. In Texas, the insurance commissioner is appointed by the Governor and is typically a former insurance industry lobbyist.)

intercst

IP,

Thanks for the info.

Actually I moved to Arizona a few years ago. A decade or two ago when I was also living in Arizona the heat didn't bother me as much but I was also working and out of the heat 5 days a week.

I've never had interest in buying a new home. I watched too many coworkers nearly go crazy trying to monitor a new build. Contractors seldom do what they say they will w/o fairly close monitoring.

The school district/taxes in PA can be quite expensive depending where you live.

One new advantage back east that I'm missing out west is being so much closer to Europe for vacation. Coming from AZ means another good 4+ hrs in the air and almost always means a connection which adds another few hours at a minimum. So an extra 6+ hrs of travel. Last year we got lucky with a non-stop Paris-Phoenix flight. A long 10+ hrs in the air but better than connections.

Maybe if I had to do it over I never would have bought in Arizona but my wife has a ton of family here while my family is mostly gone. I do still have some friends back east. My greatest regret in housing was selling my Scottsdale home in late 2020, both in terms of losing out on a ton of money, as well as missing that location but it might be out of my reach now. Too much stress back then with jobs and family medical issues going on.

Thanks.
Rich

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