Out of State Tax Considerations

[Erin W.]

Hi,

Over time, I've browsed so many forum topics and now I'm thinking about investing out-of-state.  I thought I remembered reading some advice about income tax vs some other tax in both your residence state and the state  you want to invest in.  I think the person used this to say that someone in California is better off investing in Texas than in New York (based off this one consideration).

Can someone refresh me on what this tax consideration was?

Also, are there any other state-specific things to consider when choosing an area to invest in?  I live in California.

Thanks!