A few years ago Dawn Donaghy and her husband, Raymond, made a decision that many residents in high-tax states make. They wanted to move.
The couple, then residents of Old Tappan, New Jersey, a town less than 30 miles outside of New York City, loved where they lived.
But Raymond’s three children were now adults, and no longer needed the school system. And the taxes that came with that high-quality public school education were high.
The couple considered moving as far as Connecticut, so they were surprised at what they found in their own backyard.
In June 2017, the Donaghys moved to a neighboring town, Saddle River, just about eight miles away.
“We started looking and we could not believe some of the homes that we saw and the tax bracket,” Dawn said. “We just looked at each other in amazement. We’re going to have more property, a larger home and one of them was half the taxes.”
While the couple did not end up choosing that house, they still were able to bring down their tax bill substantially — by about $10,000.
The property taxes they were paying in Old Tappan were around $37,000 at their highest, according to Dawn. Today, they’re paying around $27,000.
More residents of high-tax states are reportedly looking to move in light of changes ushered in by the Tax Cuts and Jobs Act. Notably, that includes a lower cap — $10,000 — for deductions for state and local taxes.