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.

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?

We thought about VA but chose MD despite the taxes.

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.

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 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.

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.

Virginia has the lowest tax load of the three.

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.

Jeez - "move"

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

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.