Best States to Live In If You Are Rich
Although it may seem like you can live in just about any state when you’re rich, the reality is that some states are far better for rich people than others. And after evaluating all the states, a few stood out as the best for those in the highest income brackets. Read on for the methodology and the best states to choose. What Qualities Make a State Good for Rich People? Qualities that the rich tend to want in a state are: • Low crime rates, and in particular, low property crime rates • High average standardized test scores • Low income tax rate • Low average property tax • High income average for the top 1 percent • Natural beauty • Amenities and attractions Of course, everybody has their own particular preferences. For example, a rich individual without any children and no plans to have them likely wouldn’t worry as much about a state’s average test scores. Here are the best states based on the criteria above.
Wyoming: Rich people who want to continue increasing their net worth would do well to move to Wyoming, where the top 1 percent have the second-highest average income, only ranking below Connecticut. And even though the top earners in Connecticut earn more on average, that state has income tax, but Wyoming does not. West Virginia: From an income standpoint, West Virginia is good but not great, as its average income for the top 1 percent doesn’t rank among the top 10 states in that regard. It has very low property taxes, though, at only 0.52 percent. That’s only higher than three other states. West Virginia also has plenty of beautiful places to live. Nevada: When it comes to taxes, Nevada is hard to beat. The state is among the best for property taxes, with a rate below 1 percent. Combined with the fact that Nevada doesn’t have income tax, this state is an excellent place for the rich to live and own property. While much of the state is a desert, it does have Las Vegas, which is known worldwide for a reason. Honorable Mention: California From a financial standpoint, California isn’t the best. On the one hand, the top 1 percent of Californians average a higher income than that same group in all but a few states. Unfortunately, California also boasts the highest income tax rate you’ll find at a staggering 13.3 percent, making it tough to recommend over other states, especially the ones with no income tax. Still, California is absolutely stunning and has a fantastic climate. While natural beauty and weather are subjective, most would agree that California ranks at or near the top in those areas. When you’re rich and choosing a place to live, it’s obviously not all about which state will help you earn the most or ranks the best in certain areas. Where you live is a personal decision, and you may also want to consider where you friends and family are. But if you’re open to choosing any state, the ones listed above are all great choices.
Edward Schinik has been with the Investment Manager since 2009 and has been with one Affiliated Investment Manager since 2005.