MD to PA..is there really that big of a tax difference?? (Lancaster: sales)

[JS221]

My husband, myself, and my son are planning to make the move to PA. We have gone around and around about either moving to Northern Harford County or possibly York County, PA.

I know a lot of choices and we are really confused. Every time we visit in PA we fall in love all over again and I would love to move up there. We have found a few houses in the Dallastown area and some in Seven Valleys. My two big concerns are the schools and taxes. I know the internet says Dallastown schools are amazing and so on, but I want to hear it from people who actually live there. Lastly, are the taxes really that big of a difference??

My husband currently works in Baltimore, but if we choose to make the leap up there he will most likely transfer to Lancaster. Have I looked in Lancaster? I have, but I know even less about that area compared to the York County area. I currently attend college at Harford Community and have no plans on transferring any where. I should be done next summer and hope to find a decent job in the Medical Assistant field wherever we chose to relocate to in PA.

Any suggestions or information would be great! Thank you!

[PAhippo]

I've never been to either of those areas but comparing taxes isn't that simple.

There's income taxes, right to work taxes, school taxes, real estate taxes, maybe some others I've forgotten.


Since you'll be getting out of school next summer, less than a year, my advice is to just wait until then. No point in moving twice.

[North Beach Person]

The income taxes in MD are higher. PA is a set rate while MD's is progressive. Also, MD Counties impose a "piggy back" income tax of up to 60% of the State rate. Top rate is around 11% or so.

Property taxes will be weird, PA taxes tend to be higher per assessment ratio (I paid my mother's property taxes the last few years she was alive and hers were only a few hundred less than mine on a house assessed 1/7 of mine here in MD).

PA and MD sales tax is both 6% but MD's covers more items (neither tax groceries. MD does tax clothes.).

As mentioned PA has some weird little local taxes.

[kanling]

It's not really that hard to do a sample tax form for both places and see for yourself.

For most people, I don't think there is that big a difference between MD and PA taxes.

Maryland tax rates are definitely higher, but Maryland allows exemptions and deductions that reduce the income subject to tax. PA is a flat tax of 3.07% starting at dollar one. PA doesn't even allow deductions for 401k contributions.

Also, PA has additional income taxes not covered on the state form. (County income tax is part of the Maryland State form.) In PA, there is a local earned income tax of usually 1.0-1.3% in the areas you are looking at. (yatb.com)

The PA income tax rate is also likely to rise if the gubenatorial candidate currently leading in the polls is elected.

PA property taxes (including county and school district taxes) are higher than Maryland, but house prices tend to be a lot lower.

[wyattsmom]

My husband and own property in both MD and PA. Total taxes are similar. PA offers more in 1. You know where taxes are spent. School tax to school lottery to seniors. Plus pension checks are not taxed in PA. MD. taxes going in and out, taxes are put in the General Fund. Check out MD. rain tax. I am for PA all the way. And I am a Maryland girl.

[CozyCorner]

Yes! We moved from Baltimore County to York County almost 10 years ago. And yes, the PA taxes are MUCH higher than Baltimore, not sure what the other posters experiences are but this was the case for us. Baltimore does not have a school tax which is ridiculous here. Also, you have to pay separately for trash collection (and the vendor is determined by your township). Also, be prepared for the separate and huge water and sewer bills compared to Baltimore Co. I don't think my water bill in Baltimore was ever above $10 and the quarterly water bill here is about $120 ($140 for sewer and these are separate charges).

That being said, we are very happy with our property and the neighborhood. People here take care of their property and it is so pretty up here. We got more land then we would in MD and I feel safe here. There's not much in terms or restaurants and things to do but it's growing (we just got a Panera and Chipotle in Shrewsbury this December which people may laugh at but years ago there was nothing!).

I do love living in a town without a stop light!

[North Beach Person]

Originally Posted by CozyCorner

Yes! We moved from Baltimore County to York County almost 10 years ago. And yes, the PA taxes are MUCH higher than Baltimore, not sure what the other posters experiences are but this was the case for us. Baltimore does not have a school tax which is ridiculous here. Also, you have to pay separately for trash collection (and the vendor is determined by your township). Also, be prepared for the separate and huge water and sewer bills compared to Baltimore Co. I don't think my water bill in Baltimore was ever above $10 and the quarterly water bill here is about $120 ($140 for sewer and these are separate charges).

That being said, we are very happy with our property and the neighborhood. People here take care of their property and it is so pretty up here. We got more land then we would in MD and I feel safe here. There's not much in terms or restaurants and things to do but it's growing (we just got a Panera and Chipotle in Shrewsbury this December which people may laugh at but years ago there was nothing!).

I do love living in a town without a stop light!

MD most certainly does have school taxes, they're just buried in your County tax bill (most Counties list 50% or so going to schools). Same way with your trash collection. Your water and sewer bills in MD aren't going to stay low for much longer.