Anonymous wrote:I happen to have our last year's MD taxes open so can easily report our tax burden in MoCo:

Taxable income: $470k. Taxes: $40k, so about 8.5% tax rate. That year, we were married couple, no children, have a mortage on a house. This year we have a dependent so will be interseted to see how it pans out.

Given our income level, I'd say 8.5% is about the worst-case scenario ... the burden should be less at lower levels.

what is your house assessed for and what was your real property rate? what kind of car do you drive?

My guess is I'd pay $23K less in income tax in Virginia, but real estate and car taxes would be a total of $5K higher. Still a big delta in Virginia.

I happen to have our last year's MD taxes open so can easily report our tax burden in MoCo:

Taxable income: $470k. Taxes: $40k, so about 8.5% tax rate. That year, we were married couple, no children, have a mortage on a house. This year we have a dependent so will be interseted to see how it pans out.

Given our income level, I'd say 8.5% is about the worst-case scenario ... the burden should be less at lower levels.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:MD Income tax is about 8 1/2%
VA Income tax is about 4 3/4%

VA car tax is about $300/yr per vehicle.

I have no idea where you are coming up with these numbers. Maryland doesn't have a fixed percentage rate, but a $250,000 income in MD would currently be taxed at around 5.1%.

The state taxes are somewhat irrelevant, anyhow, because you need to factor in county taxes, tax deductions, and other aspects of the tax burden.

The latest decent study I've seen on this says that for a maried couple with two children that own a home, taxes are highest in Prince George's county followed by Montgomery County. DC, amazingly, has the lowest taxes, though the difference between DC and Fairfax and Arlington are relatively trivial. All three are a good bit lower than Prince George's, and moderately lower than MoCo.

To be clear though, for all of these, we're talking about a few thousand dollars a year, so I wouldn't personally choose where to live based on tax burden.

I included MD state and county for the 8.5%. It all goes on the same MD income tax return. You are playing on words.

Did you include local taxes for Virginia? If so, which jurisdictions?

There are two options here:

Either you included this information only for MD, which is unfair. Or you included it for VA, but used either a statewide average or a particular jurisdiction, neither of which is helpful in answering the question.

And anyhow, income tax is only one portion of the tax burden. You need to factor in other taxes, and the savings from home ownership.

So no, I don't think these are semantic distinctions.

OP, unless you have VERY expensive cars (i.e., buy a new $40K car every 3-4 years), I think you would save a lot on taxes living in Virginia. But really, the difference is not so severe has to be that big of a factor.

I live in Virginia because of the public education (mostly college choice) and I tend to like the towns better. I used to live in MD. But really, both are very similar and the biggest factor should be commute.

Anonymous wrote:real estate taxes in MD are through the roof (no pun intended)

MD also has mandatory budget increases for schools every year regardless of expenditures.

real estate taxes are as high or higher in VA and your second statement is no more accurate.

OP this is what happens when you ask this question-- people starting spewing their political views without any real data.

Anonymous wrote:

Anonymous wrote:MD Income tax is about 8 1/2%
VA Income tax is about 4 3/4%

VA car tax is about $300/yr per vehicle.

I have no idea where you are coming up with these numbers. Maryland doesn't have a fixed percentage rate, but a $250,000 income in MD would currently be taxed at around 5.1%.

The state taxes are somewhat irrelevant, anyhow, because you need to factor in county taxes, tax deductions, and other aspects of the tax burden.

The latest decent study I've seen on this says that for a maried couple with two children that own a home, taxes are highest in Prince George's county followed by Montgomery County. DC, amazingly, has the lowest taxes, though the difference between DC and Fairfax and Arlington are relatively trivial. All three are a good bit lower than Prince George's, and moderately lower than MoCo.

To be clear though, for all of these, we're talking about a few thousand dollars a year, so I wouldn't personally choose where to live based on tax burden.

I included MD state and county for the 8.5%. It all goes on the same MD income tax return. You are playing on words.

real estate taxes in MD are through the roof (no pun intended)

MD also has mandatory budget increases for schools every year regardless of expenditures.

That's funny about DC as i moved from VA to DC over 15 years ago and people thought i made such a poor financial decision (not true as it turns out). VA is cheaper in taxes and the public college choices are terrific so if you like it there thats the way to go. (Though f you like to own newer cars that will hurt you in Virginia.)

Sorry, I should have specified that those numbers were for married homeowners earning $200,000.

Anonymous wrote:MD Income tax is about 8 1/2%
VA Income tax is about 4 3/4%

VA car tax is about $300/yr per vehicle.

I have no idea where you are coming up with these numbers. Maryland doesn't have a fixed percentage rate, but a $250,000 income in MD would currently be taxed at around 5.1%.

The state taxes are somewhat irrelevant, anyhow, because you need to factor in county taxes, tax deductions, and other aspects of the tax burden.

The latest decent study I've seen on this says that for a maried couple with two children that own a home, taxes are highest in Prince George's county followed by Montgomery County. DC, amazingly, has the lowest taxes, though the difference between DC and Fairfax and Arlington are relatively trivial. All three are a good bit lower than Prince George's, and moderately lower than MoCo.

To be clear though, for all of these, we're talking about a few thousand dollars a year, so I wouldn't personally choose where to live based on tax burden.

MD Income tax is about 8 1/2%
VA Income tax is about 4 3/4%

VA car tax is about $300/yr per vehicle.

If you look around the Post and others have done comparisons and VA is a little cheaper than MD but not by as much as some people would have you believe. Personally I don't think it's enough to locate based on-- for both MD and VA I'd say there are parts I'd be happy to live in, and parts that are a traffic-choked, unwalkable mess.

I have lived in Old Town and Bethesda and I find the taxes in Montgomery County to be much higher and there are a ton of them. Mind you not all of them are high- bag tax, carbon tax, impervious surface tax- but I feel like I am getting taxed every time I turn around. Add the taxes to the speed cameras that are EVERYWHERE and there is definitely a feeling of big government in Montgomery County that I didn't experience in VA.

Well, the transaction taxes on the MD purchase will be much higher. But that's a one-time expense.

Income tax in MD would be higher, too.

Not sure about property tax. Guess it depends on what jurisdictions.

But overall, VA has lower income taxes.

VA does have a property tax on cars, though, so if you drive anything late model you'll be writing a hefty check every October.

Our HHI is about 250k--we are looking to buy a home around 600k in the area. How much will our tax burden vary between states? Any recs for a good online calculator?