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Taxes · plain-English guide

Compare a move to another state

Set a future residence and see how a move changes modeled state and local taxes from that year onward.

2 min readWorked example included
How to read itMoving states
Core relationshipresidence in a year = current location before the move; selected destination from the move year onward

Conceptual illustration. The annual engine resolves the connected taxes and cash flows described below.

Start here

The basics

In Household settings, turn on Plan to move to another state, choose the move year, and set the destination and local-tax details. The new residence applies from the start of that year.

A move changes residence assumptions. Enter related home sales, purchases, travel, or moving expenses as their own plan entries.

Illustrative numbers

Tie a move to a home sale

Move year2035

Residence used for 2034Original state

Residence used for 2035 onwardDestination state

The model uses the destination for the full move year. If the home is sold during that year, review its property location and the sale’s tax treatment separately.

Calculation transparency

How it works in MoneyWhatIf

  1. 01

    The move year can use a fixed date or a life milestone. Changes to a linked milestone can therefore move the year in which taxes change.

  2. 02

    The destination uses its own state and local settings, including applicable retirement-income treatment. Federal filing remains a separate household setting.

  3. 03

    Property cards can follow the household’s location or pin their own state and property-tax rate. Check these fields for property you keep after moving.

  4. 04

    Strategy Lab and Goal Plan can explore relocation when you allow that lever. Their candidates remain subject to the locations and choices the search actually tests.

Keep in mind

Model limits

A move is modeled at a year boundary. Part-year residency returns, multi-state wage sourcing, and every property-source tax rule are not fully represented.

The residence setting does not automatically change spending, house values, or moving costs to match a different cost of living.

This explanation documents the planning model. It is educational, not individualized tax, legal, Medicare, or investment advice.

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