Friday, September 18, 2009

Which state is better with income taxes, Michigan or New York? -

I m a New York resident but I m moving to michigan permanently due to federal job, They told me that i can choose between either state for my income tax. Which one is better and Do i actually can choose or I have to stick to new york since I m a resident? I m planning to change my driver license and everything to michigan, Is that a good idea or should I stay with new york? thanks

If you re primary residence will not be in New York in 2010, and you will have a year-round address in Michigan and primarily reside at that address, and you file your own taxes at the end of 2010, you ll no longer be a resident of New York. You ll be a resident of Michigan and pay only Michigan income taxes.FYI: Michigan income tax rates are a fixed percentage of income, while New York income taxes are staggered. All in all, Michigan has the better rate, but not by much.

I would say Michigan since New York is so expensive.