Some homeowners are saying goodbye to New Jersey and New York, to say hello to Pennsylvania. If you are considering relocating; because of family, employment or other reasons; a few good reasons to consider Pennsylvania, especially the Main Line and counties surrounding Philadelphia include lower real estate taxes and personal income tax.
One couple who relocated to Philadelphia’s Washington Square from Haddonfield, New Jersey after their youngest child finished high school may have downsized in space, but their property taxes were cut in half. They also got a more convenient lifestyle; getting rid of one car and walking to work.
According to the 2010 census, “in-migration” from New Jersey to Pennsylvania is a burgeoning movement that accounted for 80 percent of the Keystone State’s net gain last year of 25,770 residents from other states.
In interviews with demographers, real estate agents, financial planners, and the recently relocated, tax savings, quality-of-life choices, and new commuting patterns emerged as the driving forces behind the influx.
According to De Jong, the Pennsylvania counties most benefiting from state-to-state moves are: Pike and Monroe, within commuting distance of the New York metropolitan labor market; Northampton, Bucks, and Lehigh, with proximity to New Jersey’s labor market; and York, Adams, and Franklin, within the Baltimore/Hagerstown metropolitan market.
Annual taxes on a “comfortable townhouse” in the Washington Square or Fitler Square neighborhoods, are around $5,000.
A drop from $17,000 (in Haddonfield, NJ) to $5,000, which is a monthly saving of $1,000.
“At today’s 4 percent mortgage rates, $1,000 equals $250,000 in extra buying power,” said Conway, noting that many of her clients make use of that equation to buy up.
Why are lower personal income taxes drawing transplants from New Jersey? In Pennsylvania the personal income tax rate in Pennsylvania is a 3.07 percent, whereas in New Jersey, the personal income tax rate can be double or triple Pennsylvania’s depending on your income.
Affordability of housing in Pennsylvania, specifically the Philadelphia neighborhoods of Fishtown and Northern Liberties, has been a draw for urban-oriented artists, compared to New Jersey and New York. Besides housing being less expensive, venues such as Johnny Brenda’s and The Fire has been attracting musicians. Painters and sculptors moving to Philadelphia from New York are able to afford both comfortable studio spaces and without having to sacrifice living space.
If you are currently living in New York or New Jersey and are considering relocating to Philadelphia or the Main Line, contact me, Kevin Toll of Keller Williams, Devon, PA at 610-609-1096 or firstname.lastname@example.org