Moving out of DC because of taxes and wasteful government

[Anonymous]

Anonymous wrote:

Anonymous wrote:I moved from DC to VA and the tax difference is really not worth the trouble.

It is if you're in the top tax bracket...

If you're in the top tax bracket in DC (1,000,000+) and you're making decision on where to live over a measly few percent you either have a mental disorder or are abysmally bad at managing your money.

If you're making a million plus a year and you have any issue with money other than "how do I decide which worthy causes I can give all this money I have left over because I couldn't possibly spend that much on myself and my family" there's something seriously wrong with you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I moved from DC to VA and the tax difference is really not worth the trouble.

This is the advice my financial planner gave me. She said it wasn't going to be worth the trouble.

Almost every study I’ve seen says that for the average resident, the overall tax burden is the same across MD, VA, and DC. What you gain from lower sales tax in VA, you lose from the personal property tax.

Yes, for the average resident. For high earners, living in VA is a significant advantage.

I think you need to earn at least $500k+ for VA to start providing a significant advantage.

At $500k or below, Arlington was still the lowest overall taxes, but DC was actually 2nd looking at 15 DMV counties, and factoring in income/personal property tax, real estate, and sales taxes.

Larger reason to leave DC is the estate tax.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I moved from DC to VA and the tax difference is really not worth the trouble.

This is the advice my financial planner gave me. She said it wasn't going to be worth the trouble.

Almost every study I’ve seen says that for the average resident, the overall tax burden is the same across MD, VA, and DC. What you gain from lower sales tax in VA, you lose from the personal property tax.

Yes, for the average resident. For high earners, living in VA is a significant advantage.

I think you need to earn at least $500k+ for VA to start providing a significant advantage.

At $500k or below, Arlington was still the lowest overall taxes, but DC was actually 2nd looking at 15 DMV counties, and factoring in income/personal property tax, real estate, and sales taxes.

Larger reason to leave DC is the estate tax.

What is the most costly county to be taxed in Maryland? Montgomery? Frederick?

[Anonymous]

Anonymous wrote:Uh, don't move to Maryland. They increased my property tax 200K. I don't know what we are going to do.

Your property went up $200K in the past three years, which is a position that most people would love to be in. You'll pay approximately an additional $2K in taxes per year (which is deductible if you itemize). It sounds like you would have preferred no increase in your property value, which is highly irrational. There's basically no place in this entire country where your property value will go up $200K and your taxes will remain the same.

[Anonymous]

It sounds like from the way you phrased your question that DC will still be your home in many ways and you just want to save on taxes. Don’t try it. DC, Maryland, and Virginia are all extremely adept at going after Foreign Service Officers and military people who have much more legitimate claims of not returning to the area and forcing them to pay back taxes.

[Anonymous]

DC government hates rich people. Just look at the map for the "mansion tax' the DC council approved https://www.dcpolicycenter.org/publications/proposed-mansion-tax-generate-tax-revenue-from-small-group-of-property-owners/?mc_cid=eed06d5396&mc_eid=68de121bf0

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I moved from DC to VA and the tax difference is really not worth the trouble.

It is if you're in the top tax bracket...

If you're in the top tax bracket in DC (1,000,000+) and you're making decision on where to live over a measly few percent you either have a mental disorder or are abysmally bad at managing your money.

If you're making a million plus a year and you have any issue with money other than "how do I decide which worthy causes I can give all this money I have left over because I couldn't possibly spend that much on myself and my family" there's something seriously wrong with you.

Seems like a lot until you make that much.

[Anonymous]

Anonymous wrote:DC government hates rich people. Just look at the map for the "mansion tax' the DC council approved https://www.dcpolicycenter.org/publications/proposed-mansion-tax-generate-tax-revenue-from-small-group-of-property-owners/?mc_cid=eed06d5396&mc_eid=68de121bf0

New York has had a Mansion Tax for many years. It's been in place since 1989. NYC imposed a progressive Mansion Tax starting in 2019.

Does NY hate rich people? Has it damaged property prices in NYC?

[Anonymous]

I make that much and yeah, we have a ton of money.

And the mansion tax? It's for properties valued over $2.5 MILLION and is an increase of 18% to $1.00 per dollar of assessed value only for that portion of the house valued above $2.5M. Cry me a river...

[Anonymous]

Anonymous wrote:

Anonymous wrote:DC government hates rich people. Just look at the map for the "mansion tax' the DC council approved https://www.dcpolicycenter.org/publications/proposed-mansion-tax-generate-tax-revenue-from-small-group-of-property-owners/?mc_cid=eed06d5396&mc_eid=68de121bf0

New York has had a Mansion Tax for many years. It's been in place since 1989. NYC imposed a progressive Mansion Tax starting in 2019.

Does NY hate rich people? Has it damaged property prices in NYC?

Here is what is crazy though about DC vs. NYC. DC imposed a "mansion" tax, yet still has a very robust high-end property market...and it's simple to move out of DC. If you are upset about your Georgetown property tax, you can sell and easily move across the river to some nice neighborhoods in Arlington. It may actually reduce your commute to downtown DC because they have a bunch of metro stops, while Georgetown has none.

As anyone who knows NYC will tell you...it's not a simple move across the river to NJ or moving to Westchester. You just went from possibly a walkable commute to a one hour+ commute. Also, it's not like taxes in those places are low either.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I moved from DC to VA and the tax difference is really not worth the trouble.

It is if you're in the top tax bracket...

I am just shy of $1M. She said it wasn't worth it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:DC government hates rich people. Just look at the map for the "mansion tax' the DC council approved https://www.dcpolicycenter.org/publications/proposed-mansion-tax-generate-tax-revenue-from-small-group-of-property-owners/?mc_cid=eed06d5396&mc_eid=68de121bf0

New York has had a Mansion Tax for many years. It's been in place since 1989. NYC imposed a progressive Mansion Tax starting in 2019.

Does NY hate rich people? Has it damaged property prices in NYC?

Here is what is crazy though about DC vs. NYC. DC imposed a "mansion" tax, yet still has a very robust high-end property market...and it's simple to move out of DC. If you are upset about your Georgetown property tax, you can sell and easily move across the river to some nice neighborhoods in Arlington. It may actually reduce your commute to downtown DC because they have a bunch of metro stops, while Georgetown has none.

As anyone who knows NYC will tell you...it's not a simple move across the river to NJ or moving to Westchester. You just went from possibly a walkable commute to a one hour+ commute. Also, it's not like taxes in those places are low either.

I have quite a few friends who live in Georgetown and no one is clamering to leave.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:DC government hates rich people. Just look at the map for the "mansion tax' the DC council approved https://www.dcpolicycenter.org/publications/proposed-mansion-tax-generate-tax-revenue-from-small-group-of-property-owners/?mc_cid=eed06d5396&mc_eid=68de121bf0

New York has had a Mansion Tax for many years. It's been in place since 1989. NYC imposed a progressive Mansion Tax starting in 2019.

Does NY hate rich people? Has it damaged property prices in NYC?

Here is what is crazy though about DC vs. NYC. DC imposed a "mansion" tax, yet still has a very robust high-end property market...and it's simple to move out of DC. If you are upset about your Georgetown property tax, you can sell and easily move across the river to some nice neighborhoods in Arlington. It may actually reduce your commute to downtown DC because they have a bunch of metro stops, while Georgetown has none.

As anyone who knows NYC will tell you...it's not a simple move across the river to NJ or moving to Westchester. You just went from possibly a walkable commute to a one hour+ commute. Also, it's not like taxes in those places are low either.

I have quite a few friends who live in Georgetown and no one is clamering to leave.

“Clamoring” and, yes, my friends are leaving and my NYC friends have already left or are finishing the school year, but buying now. I left DC for VA and took my tax dollars with me. This is what smart people do. I lucked out in VA with public schools and Universities and now will retire to Florida -again, for tax reasons - where the DC and NY people are already heading.

[Anonymous]

But then you had to live in VA and FL.

Yuck.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:DC government hates rich people. Just look at the map for the "mansion tax' the DC council approved https://www.dcpolicycenter.org/publications/proposed-mansion-tax-generate-tax-revenue-from-small-group-of-property-owners/?mc_cid=eed06d5396&mc_eid=68de121bf0

New York has had a Mansion Tax for many years. It's been in place since 1989. NYC imposed a progressive Mansion Tax starting in 2019.

Does NY hate rich people? Has it damaged property prices in NYC?

Here is what is crazy though about DC vs. NYC. DC imposed a "mansion" tax, yet still has a very robust high-end property market...and it's simple to move out of DC. If you are upset about your Georgetown property tax, you can sell and easily move across the river to some nice neighborhoods in Arlington. It may actually reduce your commute to downtown DC because they have a bunch of metro stops, while Georgetown has none.

As anyone who knows NYC will tell you...it's not a simple move across the river to NJ or moving to Westchester. You just went from possibly a walkable commute to a one hour+ commute. Also, it's not like taxes in those places are low either.

I have quite a few friends who live in Georgetown and no one is clamering to leave.

“Clamoring” and, yes, my friends are leaving and my NYC friends have already left or are finishing the school year, but buying now. I left DC for VA and took my tax dollars with me. This is what smart people do. I lucked out in VA with public schools and Universities and now will retire to Florida -again, for tax reasons - where the DC and NY people are already heading.

I pity you.