Anonymous wrote:OP here. Thanks for the input. Seven or eight years ago we asked our CPA this question. She told us that we would save about $5k a year in income taxes in VA and a bit more when you add in all the fees that MoCo/MD charges. Property taxes are about the same, and car tax is not a factor for us since we drive old cars. Since then our HHI has increased, so I assume the amount we would save with a move would increase.
Moving would be expensive, but also seems to be getting more expensive as time marches on (raising the recordation tax, which is paid when you sell your home, seems to be a favored way to raise taxes in MoCo). Now Moore is proposing a 1% capital gains surcharge that will supposedly only last for 4 years, but Maryland almost never gets rid of taxes. And the kicker is that Moore wants the Maryland estate tax to now apply to estates valued at $2 million or more. So if we want to retire in the area and avoid the estate tax, it seems like moving will only get more expensive if we wait.
The economy in Maryland and MoCo is really struggling, so it also is hard to believe that this latest round of tax hikes is the last. Meanwhile Virginia's economy is doing really well. . .. I don't take any joy in writing the above because we actually like our MD neighborhood.
FWIW, we are house hunting in NoVA right now and it is a nightmare price-wise. Keep that in mind.
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