PFB Law, Professional Association - St. Paul Business Law And Estate Planning Lawyer" class="brand-image"/>
St. Paul: 651-968-1022
Toll Free: 866-561-3419
Practice Areas

Choosing a home: Taxes make a difference

If you're ready to buy a home, one of your questions might be which state to choose as your base. Both North Dakota and Minnesota are good options, but which one is better?

What it really comes down to is how much you want to pay in taxes. Minnesota has much higher income taxes than North Dakota, which could influence your choice. In Minnesota, a family making $100,000 would see a difference of close to $4,000 in taxes each year.

Although the taxes may sway you to move to North Dakota, keep in mind that housing is more expensive there. In Minnesota, you'll save around $30,000 on the cost of a home compared to one of the same or similar specifications in North Dakota.

So, what helps you make the real decision? Look at how much you make each year. People who make $160,000 or more are better off moving to North Dakota, where they'll pay more upfront for their homes but less in taxes overall. If you make less than that, it's a better idea to stick to Minnesota.

The major benefit is that even if you decide to cross the river to work, it's possible. You can choose to live and work in each state separately without it affecting you badly. If you plan to purchase a business, remember that your business taxes are different in each state, so it's a good idea to look into them before you buy, even if you think you've found a good deal. Your attorney can help you review any contracts and work out your tax obligations.

Source: WDAY, "North Dakota or Minnesota: How to determine which state is best for home buyers," Angeline McCall, Feb. 08, 2018

No Comments

Leave a comment
Comment Information