Money Rehab with Nicole Lapin: Where The Rich Move to Avoid Taxes

Release Date: May 29, 2025

In the “Where The Rich Move to Avoid Taxes” episode of Money Rehab with Nicole Lapin, host Nicole Lapin delves into the strategic migrations of affluent individuals aiming to minimize their tax burdens. This detailed exploration provides listeners with valuable insights into how relocating to specific states can lead to substantial financial savings.

Focusing on the Big Financial Picture

Nicole begins by challenging common financial advice that emphasizes cutting minor expenses, such as daily lattes.

“In the finance world you should actually sweat the big stuff.” (00:00)

She argues that addressing significant financial factors, like reducing the Annual Percentage Rate (APR) on credit cards, can yield more substantial savings compared to minimizing small, everyday expenses.

The Crucial Role of Taxes

Highlighting the impact of taxes on personal finances, Nicole underscores how lowering tax obligations can transform one’s financial landscape.

“Lowering your tax burden can change your life.” (02:15)

She shares that many savvy businesspeople relocate to states with more favorable tax environments to retain a larger portion of their earnings. As an example, she mentions Jeff Bezos’s recent move from Washington to Florida, projected to save him $430 million in taxes.

Top Tax-Friendly States

Nicole identifies Nevada, Wyoming, and Florida as the premier states for tax avoidance, explaining the benefits each offers:

1. Nevada

   • No State Income Tax
   • Low Sales Tax: 4% (eighth lowest in the country)
   • Low Property Taxes: 10th lowest property tax rate
   • “Nevada is the champion, where you'd only owe $2,200 in property taxes.” (18:45)

2. Wyoming

   • No State Income Tax
   • Low Sales Tax: Comparable to Nevada
   • Low Property Taxes
   • “Wyoming has no income tax and low sales tax and low property taxes.” (12:30)

3. Florida

   • No State Income Tax
   • Moderate Sales Tax: Around 6%
   • Average Property Taxes
   • “Florida is perhaps the biggest magnet for celebrities and athletes looking to lower their tax burden.” (15:10)

Nicole contrasts these states with others like Texas, which, despite having no income tax, compensates with higher property taxes. She explains that while states without income tax can offer financial advantages, it’s essential to consider the overall tax structure.

Comparative Analysis: Nevada, Wyoming, Florida vs. California

Using a hypothetical scenario, Nicole compares the tax implications of living in Nevada, Wyoming, Florida, and her home state, California:

• Scenario: Owning a $400,000 home with an annual income of $70,000.

  | State | Property Taxes | Income Taxes | Take-Home Pay After Taxes | |------------|-----------------|--------------|----------------------------| | Nevada | $2,200 | $0 | $59,800 | | Wyoming | $2,400 | $0 | $59,560 | | Florida | $3,300 | $0 | $58,700 | | California | $3,000 | $3,000 | $56,000 |

“When we did the math for property tax, California actually had better rates than Florida.” (22:50)

Nicole emphasizes that despite California having relatively moderate property taxes, the absence of state income tax in Nevada, Wyoming, and Florida significantly enhances take-home pay, positioning these states as more tax-efficient choices.

The Importance of Income Tax

Nicole revisits her earlier point about the critical role of income tax in overall financial health. She explains that even if a state offers lower property taxes, the elimination of income tax can lead to greater financial benefits.

“The absence of state income tax is so significant that it ultimately outweighs the benefit of lower property tax in California.” (25:30)

Practical Financial Tip

Concluding the episode, Nicole offers a practical tip for listeners facing relocation decisions:

“If you're at a crossroads... choose the one that gets more tax love. I promise it's going to pay off big time.” (28:00)

Conclusion

Nicole Lapin’s episode provides a comprehensive analysis of how relocating to tax-friendly states like Nevada, Wyoming, and Florida can offer substantial financial benefits, especially for high-income individuals. By focusing on significant financial decisions such as state residency, listeners are empowered to make informed choices that could enhance their overall financial well-being.

For personalized financial advice or to share your money questions, Nicole invites listeners to engage via email at moneyrehab@moneynewsnetwork.com. Follow Money Rehab on Instagram @moneynews and TikTok @oneynewsnetwork for more exclusive content.