IMPORTANT: The calculator is based on the most recently published tax rates, brackets, deductions, etc. for each location as of August 1, 2013. Be sure to consult with a tax specialist before actually moving based upon the results - remember, this is only an estimate.
Click here for other things you should know as you input information.
- We only provide for the options of single filing individually and married filing jointly, plus any number of dependents. The estimates will thus be slightly off for those who file as "Head of Household" or "Married Filing Separately" or any other special filing statuses, but should still be accurate directionally and give you a sense of the potential savings associated with a move.
- We do not adjust for any "above the line" deductions from gross income to reach adjusted gross income (AGI). In other words, if users have significant "above the line" deductions (e.g. moving expenses, student loan interest, IRA contributions, alimony, and other deductions found on lines 23 through 36 of the 1040) they should make those additions to the gross earned income figure they input. In particular, those who make pre-tax contributions to an IRA, 401(k) or similar retirement plan should subtract the annual amount of those contributions from the figure entered for Annual Gross Income Earned.
- More generally, all of the income inputs relate to taxable income. One should not include tax-free interest on municipal bonds, dividends or capital gains received in taxable accounts, life insurance or other tax-free benefits.
- We assume that income remains constant between now and the time of retirement. If one's income or deductions are variable over time due to unforeseen circumstances in the previous fiscal year, then the estimate for lifetime savings will not be fully precise.
- Short-term capital gains income should be included in the Annual Gross Income Earned category.
