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The Poker Legislation Forum, Brought to You by the PPA Discussions of various poker-related laws and steps players can take to push for better laws.

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Old 03-04-2013, 09:05 PM   #1
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Best/Worst State to Live in for Professional Gambler?

I know California is one of the heaviest taxed states along with New York in the USA. I know states like Nevada and Florida are great for professional gamblers because they don't have to pay state income taxes and thus they pay much lower taxes because they only pay federal. Of course you have to pay the self employment tax no matter what which is 15.3 percent. I read thats why lot of pros live in vegas as oppose to california.


My question is how much money does one actually save if they live in a state like Nevada or Florida as oppose to California and New York? I would like information from someone that has lived in one of the states like California or New York and then moved to another state such as Nevada or Florida.


Assuming $50,000 gambling income and lives in California or new york. I assume 30-35 percent total tax? This includes federal, state and se tax.


How much would that same person be paying if they live in Florida or Nevada?


What about the same person who makes 100k/year? If he lives in California, he would be paying around 35k total but if he lives in Nevada he pays around 28k? So basically someone with 100k in total income will save about 7k if they live in nevada as oppose to california? Or is that number way a bit too small.


Is it like this in terms of heavily taxes states when you consider all taxes


California>New York>Nevada>Florida?


Or is nevada and florida the same?


What about those other 5 states that don't need to pay state income tax like Nevada and Florida? Are they still around the same?


I used 50,000 and 100,000 as the based numbers for this. Obvioulsy if someone makes a lot more, then they would be saving much more in taxes such as someone like a Daniel Negreanu.


Would like information on how much one would save in a no state income tax state as oppose to a state like California or New York for $50,000 and $100,000.

Last edited by IrishFrench; 03-04-2013 at 09:10 PM.
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Old 03-05-2013, 12:28 AM   #2
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Re: Best/Worst State to Live in for Professional Gambler?

You would really have to get with an expert to know exactly, but one major thing to consider is standard of living. The standard of living in Nevada is ridiculously low due to being destroyed by the crash. Nevada also has no state income tax, so you would win there also compared to a state like California. Though, states do have to pay for government services some how. For Nevada it's gambling. For Texas it's property tax. These taxes affect people differently. This is a good place to start for overall tax burden:

http://taxes.about.com/od/statetaxes...ocal-Taxes.htm
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Old 03-05-2013, 07:09 AM   #3
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Re: Best/Worst State to Live in for Professional Gambler?

In terms of income taxes, the amount you save by moving from California to a state which has no income tax is exactly equal to the amount of state income tax you pay to California, since the amount of federal income and SE tax you pay stays the same no matter which state you live in, regardless of your total gross income.

You will realize other savings by moving to Florida. For one, housing is much cheaper in Florida. The cost of most things (including gas) is cheaper in Florida. Sales tax is cheaper in Florida for the most part, depending on which CA county you live in and which FL one you move to (ranges in FL from 6% to 7.5%). Utilities are cheaper in FL. So are state and municipal services, generally. Property taxes are much lower. A full-price annual pass to Disney is $469 in CA, but just $425 in FL. The list goes on.

You do have the additional cost in FL of monthly payments to the Alligator Syndicate for protection against getting bit.
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Old 03-05-2013, 01:24 PM   #4
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Re: Best/Worst State to Live in for Professional Gambler?

Well i wanted to use the base amount of 50k per year and 100k per year.


I just would like an expert or someone that has lived in one state that has to pay high taxes such as California or New York and compare it to when that person lived in Nevada or Florida. I'm curious at what is the total savings is for someone who makes 50k per year and for someone who makes 100k per year.


I know housing is cheaper in florida and las vegas as compared to california and new york so you obviously save money if you lived there as oppose to the other two.


But i just want to know strictly about how much one saves for taxes a year for a 50k income and 100k income from gambling strictly. I don't want to know about the other stuff like property taxes or utilities etc.
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Old 03-05-2013, 01:29 PM   #5
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Re: Best/Worst State to Live in for Professional Gambler?

NY is pretty bad for pro-poker player:

high cost of living
high state income tax and no regular games above 2/5NLH
few casinos to play live poker
US facing online sites will not take new NY players
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Old 03-05-2013, 02:08 PM   #6
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Re: Best/Worst State to Live in for Professional Gambler?

Quote:
Originally Posted by mike1270 View Post
NY is pretty bad for pro-poker player:

high cost of living
high state income tax and no regular games above 2/5NLH
few casinos to play live poker
US facing online sites will not take new NY players

city tax too for those in NYC.
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Old 03-05-2013, 02:20 PM   #7
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Re: Best/Worst State to Live in for Professional Gambler?

Yes i know NY is bad for pro poker player. Same as with California.


But does anyone know the numbers or approximately? Surely there is someone that has lived in one of these states made 100k/year and then moved to las vegas or florida and make 100k/year.


I just want a rough estimate of how much less in taxes someone can expect to pay. I know some ppl don;t want to give personal information but it could be something like if u make 100k per year in california, total taxes will be around 34k-37k and if you make 100k per year in nevada... expect to pay around 30k-32k or something like that.
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Old 03-05-2013, 03:03 PM   #8
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Re: Best/Worst State to Live in for Professional Gambler?

Quote:
Originally Posted by IrishFrench View Post
Yes i know NY is bad for pro poker player. Same as with California.


But does anyone know the numbers or approximately? Surely there is someone that has lived in one of these states made 100k/year and then moved to las vegas or florida and make 100k/year.


I just want a rough estimate of how much less in taxes someone can expect to pay. I know some ppl don;t want to give personal information but it could be something like if u make 100k per year in california, total taxes will be around 34k-37k and if you make 100k per year in nevada... expect to pay around 30k-32k or something like that.
Federal income taxes vary greatly depending on individual situations, not just amount of income. But you can figure this out for yourself.

The income tax savings you will get from living in FL or NV will be exactly the amount of state income tax you would pay if you live in CA instead. You can figure how much state income tax you would pay in CA (for 50K income or 100K income or whatever) here:
https://www.ftb.ca.gov/online/Tax_Calculator/
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Old 03-06-2013, 02:41 PM   #9
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Re: Best/Worst State to Live in for Professional Gambler?

Okay i used that calculator.


For 50k, its $2,253

For 100k, its $6,901


Is it me or do these numbers look way too little? So for a 50k income in california, you are just paying 2,253 for state income taxes? So in essence you are saying 2,253 if you live in florida or nevada when you don't have to pay state income tax?
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Old 03-06-2013, 03:04 PM   #10
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Re: Best/Worst State to Live in for Professional Gambler?

Quote:
Originally Posted by IrishFrench View Post
Okay i used that calculator.


For 50k, its $2,253

For 100k, its $6,901


Is it me or do these numbers look way too little? So for a 50k income in california, you are just paying 2,253 for state income taxes? So in essence you are saying 2,253 if you live in florida or nevada when you don't have to pay state income tax?
Yes, looks about right. That would be your income tax savings by living in any state which doesn't have an income tax instead of CA.

You can compare cost of living in various cities on a site like this:
http://www.numbeo.com/cost-of-living...=United+States
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Old 03-09-2013, 01:45 PM   #11
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Re: Best/Worst State to Live in for Professional Gambler?

in my case moving from NY to FL would save me from paying NY taxes but the cost a living is a much bigger factor
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Old 03-10-2013, 11:11 AM   #12
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Re: Best/Worst State to Live in for Professional Gambler?

Quote:
Originally Posted by mike1270 View Post
NY is pretty bad for pro-poker player:

high cost of living
high state income tax and no regular games above 2/5NLH
few casinos to play live poker
US facing online sites will not take new NY players
Yes, very high cost of living.

Is a 2.5 hr drive really that bad? AC, Mohegan, Foxwoods, Philly.

Last edited by mystery_man; 03-10-2013 at 11:17 AM.
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Old 03-11-2013, 03:36 PM   #13
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Re: Best/Worst State to Live in for Professional Gambler?

Get a modest apartment, and thus establish state residency, in state tax-free Casper, Wyoming. I believe Casper has a regional airport, if you're interested in flights to Vegas or as a means to travel to Denver, CO for international travel. Travel up north to play legal online poker for money in Canada April-September and go down south to Mexico to play October-March. Though you may have to actually reside in Wyoming at least 180 days, continually or in total days IDK either, out of the year in order to be considered a legal state resident. Couldn't really find the answer to that on the Wyoming State website. Sad that one would even have to consider these options, in order to play online poker for money... in far away "lands of the free". I may very well do this if PokerStars if strong-armed out of New Jersey. Like the game of chess, you always have to consider the moves of your opponents and how you'll possibly react to them if they should carry them through.
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Old 03-12-2013, 12:31 PM   #14
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Re: Best/Worst State to Live in for Professional Gambler?

Quote:
Originally Posted by mystery_man View Post
Yes, very high cost of living.

Is a 2.5 hr drive really that bad? AC, Mohegan, Foxwoods, Philly.
NY is a large state - you are assuming i live in NYC

and if i did live in NYC - yes 5 hours in the car everyday is bad
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Old 03-12-2013, 01:57 PM   #15
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Re: Best/Worst State to Live in for Professional Gambler?

I'm a professional gambler and moved from NY to NV 2.5 years ago. The amount of savings in state taxes and cost of living was significant to say the least. You can calculate your savings yourself fairly easily.

Another cost-saving is going to be on healthcare. The healthcare costs for a self-employed person is going to be SIGNIFICANTLY less in states like Florida or Nevada versus California or New York, especially now that purchasing healthcare is mandated by the government.

For housing, I live in a 2200 sf house in a nice neighborhood that costs the same per month as an apartment in NY. FL is probably roughly the same.

I also like the fact that NV is just a 3.5 hour drive away from Orange County/Los Angeles, and that one of the busiest airports in the world is 15 minutes from my door.

I still spend about 3 months of the year in the NY area.
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