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Discussion

Moving

Hi, I am going through a divorce right now. We are probably going to sell the house. I currently live in Kentucky and will move when divorce is final. I am wondering what states would be good to set up a new tax home? Is it better to set one up in one of the income tax free states such as Texas or New Hampshire?

Also, is it hard for travel nurses to obtain a mortgage? I really love owning a house and would love to buy another one at some point if I can save up enough money for the down payment. thank you

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If you are starting from zero with no particular place you want to move (seems inconceivable to me), then an income tax free state that is also compact and has a low cost of living would be ideal. Texas and South Dakota fit that model. But there are lots of ways to evaluate potential homes, from cost of living to quality of life. Google will find you plenty of "best" places to live based on various criteria. I just gave you a travel nurse best.

Yes, travel nurses get mortgages. Sometimes you have to shop around and sell your total compensation as often your taxable will not qualify on its own. Buy a home cash for $20,000 in SD and skip the mortgage!

Just be careful when looking at no income tax states. For example texas has high real estate taxes and nevada has super high car registration fees. I'd recommend what Ned said. Figure out where you want to live based on your preferences rather than taxes.

  • Author

Thanks for the suggestions! I have family in New Hampshire, but their property taxes are really high in their winters are rough. I read really good things about Texas. So, I'm hoping to go to New England for the summer and then Texas in the winter to see which place I'd like to move.

NH has high car registration fees. Texas has low taxation overall and low car licensure fees and insurance in many zip codes, but it is not an ideal state to work in, at least comparatively. Not a big deal if you simply take assignments out of state as some Texas nurses do. It would be a good idea to do some agency per diem in your new state though to establish and solidify your tax home status.

  • Author

Thanks Ned!

No Blue State/Red State issues?

Well that is a strike against Texas for sure, unless you want to live in the Austin neutral zone.

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