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Old 02-18-2008, 07:45 AM
 
96 posts, read 436,065 times
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A friend of a friend who lives in Washington, DC said that VA's taxes are MUCH higher VA than in MD. Is this true?

I am relocating to the area and haven't totally decided on MD or VA...

All feedback is so appreciated.

Thanks
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Old 02-18-2008, 08:52 PM
 
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In an attempt to provide some feedback for you, I will point you to a couple of things I have read recently.

Basically, if you want to look at taxes in a vacuum, then one of the best sources might be the document put out in Nov 07 from the DC Office of the Chief Financial Officer that is a comparison of tax rates and burdens in the DC area. It compares DC with 5 neighboring areas - namely Montgomery (MD), Prince George (MD), Arlington (VA), Fairfax (VA), and Alexandria (VA). Note that this document is a 69 page PDF file and it can be found here:
District of Columbia: Office of the Chief Financial Officer

If you can't tolerate weeding through the above document, then you can get a 1-page overview of the article from Marc Fisher's blog on WashintonPost.com's website and it can be found here: Who Pays More Taxes? Virginia, Maryland or D.C.? - Raw Fisher

According to the official PDF source, the answer seems to be that it depends. At lower income levels, DC is highest. At higher income levels, MD is highest. The breakdown is provided in either link above.


Personally, I wouldn't decide where to live by looking at any one factor in a vacuum, but rather decide what my (or my family's) top priorities are and weigh the spectrum of those priorities in both places. I believe Jay Hancock summarizes it best with the following:
" 'Virginia crushes Maryland in Economic Ranking of All 50 States' was the provocative headline on last week's announcement by a pro-markets, pro-limited government research group.

That's true - if you don't measure poverty, education, business creation, household income, homeownership growth, venture-capital investment, broadband access, major league sports, cultural opportunities, sprawl and pollution.

Other than those areas, in which Maryland does better than Virginia, this is a terrible state in which to live, raise a family, hold a job and own a business.

As you might guess, the study by the American Legislative Exchange Council gave states favorable marks for low taxes, low wages and not much else.

But low taxes aren't everything, or else Mississippi would be a thriving corridor of biotech startups and investment banks. Economies need reasonable taxes and investment in brains, bodies and infrastructure."
From: baltimoresun.com - Jay Hancock's blog: Examiner on Maryland taxes vs. Virginia taxes


Hope this helps!
Good luck with your decision!
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Old 02-19-2008, 08:37 PM
 
96 posts, read 436,065 times
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Thanks so much for the info
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Old 03-13-2011, 01:45 PM
 
2 posts, read 4,838 times
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Single person. 1 car. (Getting divorced and selling VA home or having ex buy me out).
Want to RENT in DC or Alexandria or Arlington. Income $70k.
To work at 2025 E St NW, Wash DC 20006 (near White House)
Want to return to school to get college degree. Heard if I reside in DC, am a "RES" everywhere.
What is the best place to live and save the most taxes?
May be moving by May 1st, 2011.
Thanks so much!
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