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 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 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 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 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 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.

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...

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.

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.

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 assessed value of your home increased by 200K. Your tax did not increase by 200K.

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

I know plenty of people who keep DC real estate but have residency in another state and don’t pay DC tax.

They have non-DC employers (work remote) and aren’t in DC for more than 6 months.

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

I hope they come after you, OP.

Anonymous wrote:We have a tax haven arbitrage nearby that's very easy to move to without upending your life - it's called Virginia.

Not sure why you'd go to Puerto Rico or USVI, it's a massive lifestyle change with a lot of costs and annoyances and bureaucratic hoops to jump through to get the tax benefits. If you own any type of business that necessitates a local real estate footprint in the DMV, it won't work for you.

Electricity is hella expensive in the USVI. And the tax shelter rules require you not only to live there 6 months out of the year but also employ like at least 10 locals at certain salary levels