Friday, March 14, 2014

The Top Three Motivations

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Residents of California pay the highest tax rate on dividend income, according to The calculation-by-state takes into account Federal and State rates, the 3.8% tax on investment income to fund Obamacare, plus
the deductibility of your state taxes against your federal taxes, local income taxes, the phase-out of itemized deductions, and any special treatment of personal dividend income.
Like millions of other Californians, we've thought of moving out of state when we fully retire. Our likely destination would be Hawaii, the second-highest-taxed State, so lower taxes won't be what induces us to move. Warm weather, family, and (getting away from) the San Andreas Fault remain the top three motivations.

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