Income and Sales tax for Balimore Residents (Baltimore, Frederick: real estate, buying)

[HarborEastGuy]

Hello,

I am a VA resident looking at a job in MD. If I accept, I would want to live (rent) downtown
in the Fells Point district. I was wondering about the tax climate in Baltimore. I Googled on
Baltimore taxes and I found this:

VA Sales Tax = 5%
Baltimore Sales Tax = 6% (6% is a state-wide sales tax?)

VA Income Tax = 5.75%
Baltimore Income Tax = 4.75% (State) + 3.2% (City) = 7.95%

Is this right? If so then Baltimore really punishes its residents. On a 150k income that's
$4,800 more in taxes to live inside the city VS live outside the city and commute in. Its
also $3,300 higher than VA Income Taxes.

I'm just trying to understand the tax climate before I make any career moves so Please do
correct me if any of these my are in error.

[MidValleyDad]

But remember MD doesn't have 'Personal property Tax' Like VA does

[MrRational]

Originally Posted by Tom55116

VA Income Tax = 5.75% (State) + County ____ + City ____
Baltimore Income Tax = 4.75% (State) + 3.2% (City) = 7.95%

Is this right?

No. Well, not until you add in the income tax that VA counties and towns charge too.
Apples : Apples

State and Local Tax Information - Fairfax County, Virginia

Impartial source: Tax Foundation
COL comp: Cost of Living comparison calculator

[North Beach Person]

Originally Posted by Tom55116

Hello,

I am a VA resident looking at a job in MD. If I accept, I would want to live (rent) downtown
in the Fells Point district. I was wondering about the tax climate in Baltimore. I Googled on
Baltimore taxes and I found this:

VA Sales Tax = 5%
Baltimore Sales Tax = 6% (6% is a state-wide sales tax?)

VA Income Tax = 5.75%
Baltimore Income Tax = 4.75% (State) + 3.2% (City) = 7.95%

Is this right? If so then Baltimore really punishes its residents. On a 150k income that's
$4,800 more in taxes to live inside the city VS live outside the city and commute in. Its
also $3,300 higher than VA Income Taxes.

I'm just trying to understand the tax climate before I make any career moves so Please do
correct me if any of these my are in error.

Maryland Counties also add the Piggyback Income Tax, so it's just not a Baltimore City thing. It will vary by County. Baltimore County's is 2.83%.

[HarborEastGuy]

Thanks for the replies..

VA seems to have a flat income tax of 5.75%. I looked up income tax for the city I live in
and it said 5.75% so there are no extra county/city taxes to add on like Baltimore does.
It's just 5.75%. And the $200 I pay in property tax to register my 10 year old car is inconsequential.

Good Point NorthBeachPerson, It looks like all the Maryland counties do add on extra taxes
(with Baltimore City being the highest)

2012 LOCAL TAX RATE CHART
--------------------------------------
Subdivision Rate
Allegany County .0305
Anne Arundel County .0249
Baltimore City .0320
Baltimore County .0283
Calvert County .0280
Caroline County .0263
Carroll County .0305
Cecil County .0280
Charles County .0290
Dorchester County .0262
Frederick County .0296
Garrett County .0265
Harford County .0306
Howard County .0320
Kent County .0285
Montgomery County .0320
Prince George’s County .0320
Queen Anne’s County .0320
St. Mary’s County .0300
Somerset County .0315
Talbot County .0225
Washington County .0280
Wicomico County .0310
Worcester County .0125

It looks like Maryland does levy a considerable higher tax burden than VA.

[EdwardA]

Originally Posted by Tom55116

Hello,

I am a VA resident looking at a job in MD. If I accept, I would want to live (rent) downtown
in the Fells Point district. I was wondering about the tax climate in Baltimore. I Googled on
Baltimore taxes and I found this:

VA Sales Tax = 5%
Baltimore Sales Tax = 6% (6% is a state-wide sales tax?)

VA Income Tax = 5.75%
Baltimore Income Tax = 4.75% (State) + 3.2% (City) = 7.95%

Is this right? If so then Baltimore really punishes its residents. On a 150k income that's
$4,800 more in taxes to live inside the city VS live outside the city and commute in. Its
also $3,300 higher than VA Income Taxes.

I'm just trying to understand the tax climate before I make any career moves so Please do
correct me if any of these my are in error.

Wait until you look into buying property in Baltimore that's when the real tax fun begins.

[jonjj]

I hope along with most other people that the city lowers it's tax rates. It would be great for the city and Maryland as a whole. I do live in the city because even with the higher tax rate, I save on time and money in terms of commuting. It's nice to have a five year old car with only 26 thou in mileage; not to mention a commute time as short as 10 minutes if I choose to drive.

[kanling]

Neither Maryland or Virginia has a "flat tax". So, you have to be careful in comparing marginal tax rates. Both states have tax brackets with different breakpoints, different levels of exemptions and deductions. The only way to know what the difference would be is to complete a dummy tax form for both states.

But, in general, Maryland has higher income taxes than Virginia. And, in general, Baltimore has higher taxes (local income, property, others) than the surrounding counties. If you rent, the higher property tax will translate to higher rent.

Maryland doesn't have a personal property tax (car tax) like Virginia. (Although for most people the VA car tax is zero or insignificant).

[MobileVisitor09]

Originally Posted by EdwardA

Wait until you look into buying property in Baltimore that's when the real tax fun begins.

This.

[HarborEastGuy]

Wow.. So to sum things up:

MD has higher Income Tax than VA
MD has higher Real Estate Property Tax than VA
MD has higher State Sales Tax than VA

No wonder all the growth is in VA. MD provides tax incentives
to motivate the working population to emigrate to VA. Its too
bad. Fells Point and Chesapeake Bay are so beautiful.