Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The Washingtonian published a chart on the average tax burden for someone earning like $250k and $500k and interestingly DC was second only to Arlington for lowest overall tax burden (for income, sales and property). Lower than all the other local MD and VA counties.

Again…both MD and DC really fall down when you factor estate/inheritance taxes.

Yes except we aren’t talking about people making $250K to $500K if we’re talking about saving high tens of thousands to hundreds of thousands in state taxes a year….

DC has a 10.75% income tax once you hit $1M+

I don’t get the sense OP is in that tax bracket…but maybe I am wrong.

They probably wouldn’t be asking DCUM for advice on the topic.

Anonymous wrote:

Anonymous wrote:The Washingtonian published a chart on the average tax burden for someone earning like $250k and $500k and interestingly DC was second only to Arlington for lowest overall tax burden (for income, sales and property). Lower than all the other local MD and VA counties.

Again…both MD and DC really fall down when you factor estate/inheritance taxes.

Yes except we aren’t talking about people making $250K to $500K if we’re talking about saving high tens of thousands to hundreds of thousands in state taxes a year….

DC has a 10.75% income tax once you hit $1M+

Anonymous wrote:The Washingtonian published a chart on the average tax burden for someone earning like $250k and $500k and interestingly DC was second only to Arlington for lowest overall tax burden (for income, sales and property). Lower than all the other local MD and VA counties.

Again…both MD and DC really fall down when you factor estate/inheritance taxes.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My retired relatives do this. They have a really nice Airstream trailer and spend at least 6 months of the year at an RV park in Florida.

You need to register your vehicles there, change your driver's license, and voting registration to help establish tax residency. One thing to watch for is that in low income tax states, the government finds other ways to raise revenue, like through property tax, personal property tax, or sales tax. For example Tennessee has no state income tax but sales tax is 7-9% depending on what city you're in. Texas has no state income tax but property tax is about 2% (around the DMV it's around 1%).

Whenever someone gives the sales tax makes up for it argument I know they are a low earner and haven’t paid high taxes.

Many of us are paying tens of thousands or even hundreds of thousands a year in state income taxes. No, an extra 3% in sales tax on consumer goods and restaurant meals will NOT make up for the $80k I paid last year to my state.

Now if you’re a low earner and don’t pay much in income tax then I can see that you might be concerned with sales tax.

Feel the same way about the MD county tax when people say “But what about the VA car tax….”

Sorry, I don’t care about a $2K car tax if my county tax alone is $75K

This is true, however, for us, we are looking at ACA insurance because we plan to retire early, and ACA is more expensive in VA. Plus, MD has better ACA plans.

We moved to a state where the state will more likely have an ACA like marketplace if the ACA is dismantled. It happens to be a higher tax state.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My retired relatives do this. They have a really nice Airstream trailer and spend at least 6 months of the year at an RV park in Florida.

You need to register your vehicles there, change your driver's license, and voting registration to help establish tax residency. One thing to watch for is that in low income tax states, the government finds other ways to raise revenue, like through property tax, personal property tax, or sales tax. For example Tennessee has no state income tax but sales tax is 7-9% depending on what city you're in. Texas has no state income tax but property tax is about 2% (around the DMV it's around 1%).

Whenever someone gives the sales tax makes up for it argument I know they are a low earner and haven’t paid high taxes.

Many of us are paying tens of thousands or even hundreds of thousands a year in state income taxes. No, an extra 3% in sales tax on consumer goods and restaurant meals will NOT make up for the $80k I paid last year to my state.

Now if you’re a low earner and don’t pay much in income tax then I can see that you might be concerned with sales tax.

Feel the same way about the MD county tax when people say “But what about the VA car tax….”

Sorry, I don’t care about a $2K car tax if my county tax alone is $75K

This is true, however, for us, we are looking at ACA insurance because we plan to retire early, and ACA is more expensive in VA. Plus, MD has better ACA plans.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My retired relatives do this. They have a really nice Airstream trailer and spend at least 6 months of the year at an RV park in Florida.

You need to register your vehicles there, change your driver's license, and voting registration to help establish tax residency. One thing to watch for is that in low income tax states, the government finds other ways to raise revenue, like through property tax, personal property tax, or sales tax. For example Tennessee has no state income tax but sales tax is 7-9% depending on what city you're in. Texas has no state income tax but property tax is about 2% (around the DMV it's around 1%).

Whenever someone gives the sales tax makes up for it argument I know they are a low earner and haven’t paid high taxes.

Many of us are paying tens of thousands or even hundreds of thousands a year in state income taxes. No, an extra 3% in sales tax on consumer goods and restaurant meals will NOT make up for the $80k I paid last year to my state.

Now if you’re a low earner and don’t pay much in income tax then I can see that you might be concerned with sales tax.

Feel the same way about the MD county tax when people say “But what about the VA car tax….”

Sorry, I don’t care about a $2K car tax if my county tax alone is $75K

Anonymous wrote:

Anonymous wrote:My retired relatives do this. They have a really nice Airstream trailer and spend at least 6 months of the year at an RV park in Florida.

You need to register your vehicles there, change your driver's license, and voting registration to help establish tax residency. One thing to watch for is that in low income tax states, the government finds other ways to raise revenue, like through property tax, personal property tax, or sales tax. For example Tennessee has no state income tax but sales tax is 7-9% depending on what city you're in. Texas has no state income tax but property tax is about 2% (around the DMV it's around 1%).

Whenever someone gives the sales tax makes up for it argument I know they are a low earner and haven’t paid high taxes.

Many of us are paying tens of thousands or even hundreds of thousands a year in state income taxes. No, an extra 3% in sales tax on consumer goods and restaurant meals will NOT make up for the $80k I paid last year to my state.

Now if you’re a low earner and don’t pay much in income tax then I can see that you might be concerned with sales tax.

Anonymous wrote:Why would you do that?

You voted in these high taxes and social policies.

Stay and pay your fair share for the things you voted in.

Don't go to another state with better policies to avoid paying for the policies you voted in for everyone else.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Plenty of people do this. Keep track of credit card statements in case you have to prove that you were actually there for 6 months.

Exactly. Local tech CEO Saylor got busted for this. In his case, he posted photos on Insta from his yacht in DC on days he claimed he was not in DC:

https://www.cnbc.com/2024/06/03/bitcoin-billionaire-michael-saylor-settles-dc-tax-fraud-case-for-40-million.html

Well you actually have to move and reside in the other place for 6months+.

We travel a lot so for us, proving we are somewhere 6 months of the year would be difficult, as we spend 3-4 months traveling and would want to split the rest between 2 places.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Plenty of people do this. Keep track of credit card statements in case you have to prove that you were actually there for 6 months.

Exactly. Local tech CEO Saylor got busted for this. In his case, he posted photos on Insta from his yacht in DC on days he claimed he was not in DC:

https://www.cnbc.com/2024/06/03/bitcoin-billionaire-michael-saylor-settles-dc-tax-fraud-case-for-40-million.html

People have yachts "in DC"? This blows my mind. Doesn't time on a yacht mean like no location? Maritime?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Plenty of people do this. Keep track of credit card statements in case you have to prove that you were actually there for 6 months.

Because OP is planning to keep their place here, no doubt will be here quite a bit, will continue to rely on our services, but wants to avoid paying taxes. Then they'll complain about how things are here, without putting their money where their mouth is. Not to mention they're likely to cheat and be here more than six months a year.

When doing your math, OP, don't forget you lose the homestead exemption on your house, the opportunity for a 50 percent reduction in your property taxes through the senior citizen discount, the right to register your car here and get zoned parking, etc. etc. etc. Plus it's just a shitty thing to do to the city and it makes you a cheapo. If you have to change your residency to avoid city taxes you're not comfortable enough to retire.

Yes, we have a second home in a much more friendly tax state. No, we don't consider this.

Well, you’re a fool.

Maybe. But I'm sure as hell not gonna start counting my days to save taxes.

OP isn't saying "we're finally empty nesters and can move to where we want and away from DC." Nope. She's saying that as empty nester she thinks it's "doable" to be here less than six months. So yeah it's all about structuring your very whereabouts around state incomes taxes. Pretty sad.

Not really. Assuming you like it in DC and like the other location, I think it could be a lot of fun and very freeing!

Except that's not what OP is saying. What about "we think it's doable" do you not understand? And what's "freeing" about counting your days?