Moving Out of Maryland

[Anonymous]

My financial advisor tells me I need to move out of Maryland/Montgomery County in retirement because of the tax burden. I understand this in theory but why move to a place with no culture and away from my children just to save on taxes? Is this standard practice? Has anyone here done this and been happy? Where did you go?

[Anonymous]

A lot of DCUM retirees move to Delaware.

[Anonymous]

Anonymous wrote:My financial advisor tells me I need to move out of Maryland/Montgomery County in retirement because of the tax burden. I understand this in theory but why move to a place with no culture and away from my children just to save on taxes? Is this standard practice? Has anyone here done this and been happy? Where did you go?

Not everyone does this. My parents (Marylanders)looked around in Florida but ultimately stayed in Maryland. We paid very large estate taxes to Maryland in addition to the Federal Govt when Mom passed away.

[Anonymous]

Anonymous wrote:My financial advisor tells me I need to move out of Maryland/Montgomery County in retirement because of the tax burden. I understand this in theory but why move to a place with no culture and away from my children just to save on taxes? Is this standard practice? Has anyone here done this and been happy? Where did you go?

In fairness...I assume your advisor thinks VA provides much better taxes. I mean, yeah, it's moving...but are you really moving away from your children or culture (as I assume you mean the culture in DC proper)?

[Anonymous]

Anonymous wrote:A lot of DCUM retirees move to Delaware.

Or Pennsylvania, close to the MD state line

[Anonymous]

Anonymous wrote:

Anonymous wrote:A lot of DCUM retirees move to Delaware.

Or Pennsylvania, close to the MD state line

These two - DE or PA close to state line

[Anonymous]

Anonymous wrote:

Anonymous wrote:My financial advisor tells me I need to move out of Maryland/Montgomery County in retirement because of the tax burden. I understand this in theory but why move to a place with no culture and away from my children just to save on taxes? Is this standard practice? Has anyone here done this and been happy? Where did you go?

In fairness...I assume your advisor thinks VA provides much better taxes. I mean, yeah, it's moving...but are you really moving away from your children or culture (as I assume you mean the culture in DC proper)?

No they don’t mean VA.

They mean NC, Delaware and FLA.

If you want no amenities and to be far from family go for it.

The minuscule difference did not make sense once you take everything into account like the cost of moving and travel.

Are u in a town that has extra tax like Chevy chase or Gaithersburg?

Also the estate issue is only for lovey passing to non children. Set up a trust.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My financial advisor tells me I need to move out of Maryland/Montgomery County in retirement because of the tax burden. I understand this in theory but why move to a place with no culture and away from my children just to save on taxes? Is this standard practice? Has anyone here done this and been happy? Where did you go?

In fairness...I assume your advisor thinks VA provides much better taxes. I mean, yeah, it's moving...but are you really moving away from your children or culture (as I assume you mean the culture in DC proper)?

No they don’t mean VA.

They mean NC, Delaware and FLA.

If you want no amenities and to be far from family go for it.

The minuscule difference did not make sense once you take everything into account like the cost of moving and travel.

Are u in a town that has extra tax like Chevy chase or Gaithersburg?

Also the estate issue is only for lovey passing to non children. Set up a trust.

Are you OP? VA is definitely going to save a bunch of taxes compared to CC or Bethesda, on both income and property tax (even with the car tax). Right now, FL has fairly high property tax, so if you plan to purchase a home with say the same value as what you sell in MD, the property tax on that house will wipe out many income tax advantages...unless OP is making millions per year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My financial advisor tells me I need to move out of Maryland/Montgomery County in retirement because of the tax burden. I understand this in theory but why move to a place with no culture and away from my children just to save on taxes? Is this standard practice? Has anyone here done this and been happy? Where did you go?

In fairness...I assume your advisor thinks VA provides much better taxes. I mean, yeah, it's moving...but are you really moving away from your children or culture (as I assume you mean the culture in DC proper)?

No they don’t mean VA.

They mean NC, Delaware and FLA.

If you want no amenities and to be far from family go for it.

The minuscule difference did not make sense once you take everything into account like the cost of moving and travel.

Are u in a town that has extra tax like Chevy chase or Gaithersburg?

Also the estate issue is only for lovey passing to non children. Set up a trust.

Are you OP? VA is definitely going to save a bunch of taxes compared to CC or Bethesda, on both income and property tax (even with the car tax). Right now, FL has fairly high property tax, so if you plan to purchase a home with say the same value as what you sell in MD, the property tax on that house will wipe out many income tax advantages...unless OP is making millions per year.

Actually in FLA you are wiped out by the high insurance cost and no… VA is not much better than MD.

The WAPO did an article yearly (when it was a real news paper) and a small sliver of people did better in VA than MD and a small group did better in MD than VA. They also use to have a calculator to figure it out yourself.

Alexandria, Fairfax and I think Arlington have their own taxes as well.

Northern Virginia also has a higher sales tax than the rest of Virginia so you have to compare the parts of Virginia going to.

The data centers have made Virginia power costs skyrocket. They doubled since 2019. DOUBLED.

Essentially, you’re just splitting hairs

[Anonymous]

This is OP. I agree with the poster who says there is a miniscule difference once the cost of moving/realtor/closing costs are factored in. Also, my very experienced and highly regarded CPA does not agree with my FA. He says Florida is worth moving to if you make a million dollars every year (not just one time). BTW I don't make a million ever.

We looked at Suburban Philly (to have doctors and stuff to do) but the real estate taxes are higher than Maryland. There is also a school tax. They get you somehow it seems.

[Anonymous]

Anonymous wrote:This is OP. I agree with the poster who says there is a miniscule difference once the cost of moving/realtor/closing costs are factored in. Also, my very experienced and highly regarded CPA does not agree with my FA. He says Florida is worth moving to if you make a million dollars every year (not just one time). BTW I don't make a million ever.

We looked at Suburban Philly (to have doctors and stuff to do) but the real estate taxes are higher than Maryland. There is also a school tax. They get you somehow it seems.

My friends who have moved to PA have not moved to a city. Any city/town will have extra taxes for schools, services, etc.

[Anonymous]

Anonymous wrote:This is OP. I agree with the poster who says there is a miniscule difference once the cost of moving/realtor/closing costs are factored in. Also, my very experienced and highly regarded CPA does not agree with my FA. He says Florida is worth moving to if you make a million dollars every year (not just one time). BTW I don't make a million ever.

We looked at Suburban Philly (to have doctors and stuff to do) but the real estate taxes are higher than Maryland. There is also a school tax. They get you somehow it seems.

It’s not taxes that are killing Marylanders.

It’s the cost of houses in “W” school districts. Once you pay $1.5M for a house that would cost $600K elsewhere in the county your property tax, and interest also skyrocket,

Moved from Potomac to Rockville, got a nicer house for less money and lower costs in general,

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My financial advisor tells me I need to move out of Maryland/Montgomery County in retirement because of the tax burden. I understand this in theory but why move to a place with no culture and away from my children just to save on taxes? Is this standard practice? Has anyone here done this and been happy? Where did you go?

In fairness...I assume your advisor thinks VA provides much better taxes. I mean, yeah, it's moving...but are you really moving away from your children or culture (as I assume you mean the culture in DC proper)?

No they don’t mean VA.

They mean NC, Delaware and FLA.

If you want no amenities and to be far from family go for it.

The minuscule difference did not make sense once you take everything into account like the cost of moving and travel.

Are u in a town that has extra tax like Chevy chase or Gaithersburg?

Also the estate issue is only for lovey passing to non children. Set up a trust.

Are you OP? VA is definitely going to save a bunch of taxes compared to CC or Bethesda, on both income and property tax (even with the car tax). Right now, FL has fairly high property tax, so if you plan to purchase a home with say the same value as what you sell in MD, the property tax on that house will wipe out many income tax advantages...unless OP is making millions per year.

Actually in FLA you are wiped out by the high insurance cost and no… VA is not much better than MD.

The WAPO did an article yearly (when it was a real news paper) and a small sliver of people did better in VA than MD and a small group did better in MD than VA. They also use to have a calculator to figure it out yourself.

Alexandria, Fairfax and I think Arlington have their own taxes as well.

Northern Virginia also has a higher sales tax than the rest of Virginia so you have to compare the parts of Virginia going to.

The data centers have made Virginia power costs skyrocket. They doubled since 2019. DOUBLED.

Essentially, you’re just splitting hairs

WAPO actually ranked Arlington #1 (DC #2 actually)...but MoCo was like #13 out of 15. This was all based at maybe like $500k? The higher your income goes, then of course the more a lower income tax rate starts moving the needle even more.

On this basis, then you are splitting hairs no matter where you move. Maybe somewhere like Wyoming is significantly better, but NC isn't much different from VA.

[Anonymous]

Anonymous wrote:This is OP. I agree with the poster who says there is a miniscule difference once the cost of moving/realtor/closing costs are factored in. Also, my very experienced and highly regarded CPA does not agree with my FA. He says Florida is worth moving to if you make a million dollars every year (not just one time). BTW I don't make a million ever.

We looked at Suburban Philly (to have doctors and stuff to do) but the real estate taxes are higher than Maryland. There is also a school tax. They get you somehow it seems.

presumably you would get a smaller place when you retire and move, so even if the tax rate is higher, your overall property tax may be lower than here.

PA does not tax retirement income from IRA/401ks.

We are planning to move out of MD in a few years due to the high taxes and miserable weather. I'm actually thinking of socal where my family are and where I'm originally from. While the sales tax, gas, and overall property values are higher than here, at least I get year round great weather. Also, CA does not reassess property values every few years, unlike MD. Our property taxes have gone up significantly since we moved here 10+ years ago.

I looked at the income tax band, and CA actually has a lower income tax rate for our expected income in retirement compared to MD because every county in MD has income tax. Sales tax where I'm looking at is 7.75% - not that different to MD.

I"m basically buying the great weather. I'm happy to pay for great weather. What am I paying for in MD when I retire? I don't need good schools.

CA has good medical care, too. My elderly parents live there just fine on a fixed income. I'm not worried about earthquakes (I've already lived through a big one there before). The fires may be an issue, but we will probably be moving to an area that won't get fires but may get the smoke.

The only thing that worries me is the water issue. But, I lived in CA for 40+ years and lived through several droughts. I think we will be ok. We'll get solar panels (year round sun) and rain barrels.

I can't stand MD anymore. I need to get out.

[Anonymous]

Anonymous wrote:My financial advisor tells me I need to move out of Maryland/Montgomery County in retirement because of the tax burden. I understand this in theory but why move to a place with no culture and away from my children just to save on taxes? Is this standard practice? Has anyone here done this and been happy? Where did you go?

A) do you really think that the only place(s) with lower taxes have no culture?
B) how do you know your children will stay here?