International Man is all about making the most of your personal freedom and financial opportunity around the world. To do this, by definition, you must minimize the amount of money any government takes from you.
Unlike every other country in the world, the US successfully taxes its nonresident citizens on their global income. This means Americans living abroad have to not only deal with the tax system in the foreign country in which they live, but also with the multiple layers of tax bureaucracy from the US. It’s a uniquely American burden.
The layer that is often overlooked by US citizens abroad is state governments and state income taxes. Depending on which state claims you as its milking cow, the consequences could be substantial.
Some states are downright vicious and relentless when it comes to shaking down anyone with the smallest link to their territory. California, for example, has the highest state income tax at 13.3% and is notorious for being ultra-aggressive in its collection efforts.
State Income Taxes