From Dow Jones & Co.:

A new analysis suggests that moving to Florida, Texas, and Tennessee for the allure of low taxes isn’t as cost-effective as believed, especially for lower-income households. The analysis from the Institute on Taxation and Economic Policy found that state and local taxes are regressive in these states, with lower-income residents paying a higher effective tax rate compared to the wealthiest. The report comes as over 10 states reduce income tax rates this year, and underscores the need for equitable taxation.

Despite the tax implications, Florida, Texas, and Tennessee remain popular relocation destinations. Recent data from U-Haul shows that these states are top destinations for one-way truck rentals, due to various factors including housing costs, wages, and weather. Federal taxes also play a large role in the overall tax landscape, which is why states are focusing on lower rates and more competition to attract residents and businesses.



Read more: Moving to Florida might not be the tax play it’s cracked up to be