Overall tax burden: DC versus VA versus MD

[Anonymous]

Our family lives in DC and is considering a move to DC or VA. MD has an edge for various reasons (not to get into here), but I understand the tax burden is higher in MD than VA. But, the way I look at it, DC is probably worst of the three so getting out is a tax plus either way.

Let me know if this makes sense.

[Anonymous]

Sorry -- meant "considering a more to MD or VA"

[Anonymous]

Jeez - "move"

[Anonymous]

It depends on how much money you make, and how expensive your cars are. If your income is $300,000 or more, you are probably better off, state income tax+car tax+property tax wise, buying in VA.
MD also has some crazy closing costs if you are planning to buy an expensive home.

[Anonymous]

Virginia has the lowest tax load of the three.

[Anonymous]

There are threads (and studies) out there if you want to search (here is a blog post that links to one study, for example by DC claiming DC is the lowest http://www.theatlanticcities.com/jobs-and-economy/2013/02/do-dc-residents-pay-more-taxes-their-neighbors/4629/).

It is dependent on how you set up the comparison. I tend to think VA is slightly lwoer than DC or MD but I don't think any of the differences matter enough to determine where to live.

[Anonymous]

Anonymous wrote:It depends on how much money you make, and how expensive your cars are. If your income is $300,000 or more, you are probably better off, state income tax+car tax+property tax wise, buying in VA.
MD also has some crazy closing costs if you are planning to buy an expensive home.

+1. It is definitley income dependent.

[Anonymous]

property tax is a lot higher in Va, and the car tax in Va is a big equalizer.

but assuming you don't have two $40K new cars every few years, prob a bit cheaper in VA.

Also, higher public education is better and cheaper in VA.

[Anonymous]

If you rent and you make ~$75k or less, it's cheaper to live in DC from Montgomery County. I know because I made the move during the year and I noticed I kept $75 more per month.

[Anonymous]

We thought about VA but chose MD despite the taxes.

[Anonymous]

Anonymous wrote:If you rent and you make ~$75k or less, it's cheaper to live in DC from Montgomery County. I know because I made the move during the year and I noticed I kept $75 more per month.

would you mind sharing in what way is cheaper?

[Anonymous]

I don't think that taxes should be what determines which state you live in. Schools, commute, closeness to family or friends would matter more. I just don't think the overall tax situation between MD and VA is extremely different. Income tax is one thing, but there are a whole lot of other small tax variables you could consider. For instance, VA has an extra tax on items purchased online. Gas in MD is more expensive.