That's not a trick question.
Taxes are always a big concern when moving to a new state or even to a different city.
But a higher tax rate may save you money in the long run. David S. Oltman, CEO of The Hessel Group in Wilton, Conn., points out that New York State's income tax rate is 6.85 percent, while in nearby Connecticut the tax rate is 4.5 percent. Neither state is cheap to live in. But you may be better off living in New York because most things are deductible, while in Connecticut nothing is deductible. A factor that comes into play in that example is that Connecticut is one of 10 states that doesn't allow deductions for closing costs on the purchase of a home.