Armenians are fed up and leaving LA like never before.
Why? What’s happening in California?
For the longest time, Los Angeles’s Glendale and the surrounding areas has been an Armenian-American stronghold. With numerous Armenian schools, organizations, and cultural events, along with California’s famously good weather, it is a great place to raise a family in America while remaining connected with one’s Armenian roots.
Lately however, things are souring in the state. Armenian Americans in Los Angeles are increasingly upset due to a combination of rising living costs, perceived lack of political representation, and concerns over cultural preservation. Recent incidents have exacerbated these frustrations, particularly among parents. A significant flashpoint was a fight that broke out at a local school between parents and activities that grew to become international news (source). This incident highlighted broader issues of the communities condition in LA, leading some families to consider relocating to more affordable and supportive environments.
Where are they going?
In response to the growing frustrations in Los Angeles, many Armenian-Americans are relocating to areas that offer more affordable living costs, better educational opportunities, and a greater sense of community support.
Armenian-Americans are increasingly relocating from Los Angeles to other cities like Glendale and Phoenix in Arizona, and Las Vegas in Nevada, largely due to more affordable living conditions and growing Armenian communities (source). Others are even moving to the Republic of Armenia (source).
With the advent of work from home, the draw to move to a no-income tax state like Texas or Florida is also a draw. Florida has a relatively large Armenian community and Texas has a number of Armenian churches.
Another no-income tax state, that is seeing an increase in Armenian-Americans in Tennessee. The growth is modest and primarily focused on Nashville. An hour east of Nashville, a new Armenian community is forming unique from any other Armenian community in America. With a combination of low taxes, low costs, beautiful nature and climate, and growth opportunity, the Upper Cumberland area has attracted a growing number of Armenian-Americans to relocate to this area of the country that looks and feels like northern part of Armenia.
The cost of living in Cookeville Tennessee, in the Upper Cumberland is 39%-68% cheaper than in Los Angeles (source)(source). This remarkable figure doesn’t include the tax difference in the cities. When factoring in the tax difference between the two places, a person on a salary of $120,000 can conservatively expect to save approximately $12,368.76* annually in taxes, that’s over 10% of one’s salary saved!
Interested why Armenians are relocating to central Tennessee?
*To determine how much money someone would save in taxes by moving from Glendale, CA to Cookeville, TN, we need to consider several factors, including state income tax, sales tax, and property tax differences. Here’s a step-by-step breakdown:
California:
- California has a progressive income tax rate ranging from 1% to 13.3%.
- For an income of $120,000, the approximate state income tax in California is calculated as follows:
- First $61,214: 9.3%
- Next $58,786: 10.3%
- Calculation:
- 61,214×0.093=5,692.9061,214 \times 0.093 = 5,692.9061,214×0.093=5,692.90
- 58,786×0.103=6,054.8658,786 \times 0.103 = 6,054.8658,786×0.103=6,054.86
- Total State Income Tax = 5,692.90+6,054.86=11,747.765,692.90 + 6,054.86 = 11,747.765,692.90+6,054.86=11,747.76
Tennessee:
- Tennessee does not have a state income tax on wages.
Step 2: Sales Tax
California:
- The combined state and local sales tax rate in Glendale, CA is about 10.25%.
Tennessee:
- The combined state and local sales tax rate in Cookeville, TN is about 9.75%.
Assumption: Let’s assume an annual taxable spending of $30,000 on goods and services.
Calculation:
- California Sales Tax: 30,000×0.1025=3,07530,000 \times 0.1025 = 3,07530,000×0.1025=3,075
- Tennessee Sales Tax: 30,000×0.0975=2,92530,000 \times 0.0975 = 2,92530,000×0.0975=2,925
- Sales Tax Difference = 3,075−2,925=1503,075 – 2,925 = 1503,075−2,925=150
Step 3: Property Tax
California:
- The property tax rate in Glendale, CA is approximately 0.793%.
Tennessee:
- The property tax rate in Cookeville, TN is approximately 0.636%.
Assumption: Let’s assume the value of the property owned is $300,000.
Calculation:
- California Property Tax: 300,000×0.00793=2,379300,000 \times 0.00793 = 2,379300,000×0.00793=2,379
- Tennessee Property Tax: 300,000×0.00636=1,908300,000 \times 0.00636 = 1,908300,000×0.00636=1,908
- Property Tax Difference = 2,379−1,908=4712,379 – 1,908 = 4712,379−1,908=471
Total Savings
- State Income Tax Savings: $11,747.76 (since Tennessee has no income tax)
- Sales Tax Savings: $150
- Property Tax Savings: $471
Total Tax Savings: 11,747.76+150+471=12,368.7611,747.76 + 150 + 471 = 12,368.7611,747.76+150+471=12,368.76
Therefore, by moving from Glendale, CA to Cookeville, TN, someone earning $120,000 would save approximately $12,368.76 annually in taxes.