Taxes - MD -vs- VA (how much, buying, sales tax)

[theburro]

Depending on the kind of car you drive, house you live in; income, etc., it's my opinion that your tax burden is less in Maryland than in any of the high-growth counties (Pr. William, Loudoun, Spotsylvania, et al.) of Northern Virginia.

[kcrossley]

Originally Posted by theburro

Depending on the kind of car you drive, house you live in; income, etc., it's my opinion that your tax burden is less in Maryland than in any of the high-growth counties (Pr. William, Loudoun, Spotsylvania, et al.) of Northern Virginia.

What about James City County, VA?

[theburro]

Originally Posted by kcrossley

What about James City County, VA?

I did a quick check of the R.E. tax rate in JCC and it's .77 cents - that's dirt cheap. To put this in perspective, during my years in MD my R.E. tax was under $1000 and the market was kinda up-and-down in those days. We had a nice home on a huge lot, although the other houses in the area were newer, bigger, and fancier. Moved to northern VA, RE tax about $1200/year; and that has increased to almost $9000/year

I suggest the following: Search this forum under the subject "Williamsburg" where you will also find info re. James City Co. Contact a RE agent in JCC and ask about the 3 biggest subdivisions (condos, or what you are interested in), drive over there and look over the neighborhoods. If you see a lot of sprawl development, traffic jams, strip malls, and evidence of uncontrolled growth it's a sign the area economy is unsustainable and taxes are going up. Good luck.

[kcrossley]

Originally Posted by theburro

Moved to northern VA, RE tax about $1200/year; and that has increased to almost $9000/year:mad

Holy crap! How many years passed between the $1200 and $9000 rate? You must be in Fairfax or Loudon county.

[rdbeard5]

I've had many conversations with friends that live in the "Peoples Democratice Republic of Maryland" about the MYTH of Virginians having to pay more taxes.

Generally, it's a wash. Yes VA has the "car tax" that you pay every year but it it reduces every year. MD has a higher income tax because you get hit by the state and county combined. Gasoline is ALWAYS more expensive in MD because the gasoline tax in MD is $.06 higher than VA.

As far as RE is concerned, the tax is based on assessments, property values have soared in Northern VA in recent years, so as the property values increased so have the taxes. While MD properties vaules have also increased, they haven't increased nearly has much as VA. My homes taxes have doubled in the last three years, however the property is worth more than double of what I paid for it also. This should be a good indication on where the majority of people would like to live because of better schools, less crime, etc.

I read a article in the Wash Post a few years back that broke down everything and after all was said and done VA was cheaper than MD by a few pct. points.

The problem is MD and it's counties get their taxes from your paycheck before you even see it. While Virginians write a check once a year for the "car tax". SInce Virginians have to write this check everyone automatically assumes that the taxes in VA are higher.

Personally I refuse to cross the Potomac River to move into MD.

[kcrossley]

That's good to know. Thanks for responding.

[theburro]

[quote=rdbeard5;245620]

Generally, it's a wash. Yes VA has the "car tax" that you pay every year but it it reduces every year. MD has a higher income tax because you get hit by the state and county combined. Gasoline is ALWAYS more expensive in MD because the gasoline tax in MD is $.06 higher than VA.

As far as RE is concerned, the tax is based on assessments, property values have soared in Northern VA in recent years, so as the property values increased so have the taxes. While MD properties vaules have also increased, they haven't increased nearly has much as VA. My homes taxes have doubled in the last three years, however the property is worth more than double of what I paid for it also. "


I agree with your excellent assessment of the 2 states and their taxes. Having lived in both, I favor Virginia for a variety of reasons and plan to stay here. One point of clarification: Richmond has capped car tax "relief" reimbursements to the localities, so many jurisdictions such as Lodoun and Pr. William are now passing their increased costs to the taxpayer. So, our tax on a particular vehicle can theoretically go up (or stay about the same) depending on its value, mileage, etc.

I have many acquaintances (esp. in Fairfax Co.) who have R.E. tax over $10,000 a year, and some whose tax is more than their mortgage payment. Some folks might call their places "mansions" but they are just nice, big houses. Like you say, they benefited from the market inflation and now are sitting on a fortune in assets, at least on paper.

[kcrossley]

I just thought I'd table this again to see if anyone has any additional comments—especially in regard to business taxes.

[njmom8]

Very interesting topic. We are about to move to DC, and are contemplating (of course) NoVa, Montgomery County (Bethesda), and NW DC.

I get the feeling taxes may be similar in NoVa and Montgomery (not enough of a difference to base our decision on).

However, I favor NW DC- does anyone know how this figures in....

[Cattknap]

Hi - VA sales tax is now 5% not 4 and the sales tax on groceries will be 1.5% after July 1, 2007.