Taxes - MD -vs- VA (Richmond, Fairfax: sales, real estate, new home)

[kcrossley]

In terms of taxes (sales, income, personal property, fuel, etc.), is it better to work and live in Maryland or Virginia?

[kcrossley]

Well if nobody knows the answer to this is there a web site that may have this information?

[murphy00]

I don't think you can get exact figures to base your decision on.

According to my research, Maryland counties have their own income tax in addition to the state income tax. Virgina does not have county income taxes according to my research.

In Virginia, you have the personal tax on your car but Maryland does not.

The property taxes when comparing counties in Virginia and Maryland is usually lower in Maryland based on the amount per $100 of assesed value, but don't forget you are paying the county personal income tax there as well.

Hope this helps.

[rubytue]

Every couple years, the Washingtonia magazine does a big spread on "MD vs VA." Usually the conclusion is that its a wash. Maryland hits your pay more directly (with progessive income taxes) while Virginia nickels and dimes you (higher sales tax, property taxes, car tax, etc).

If you smoke, Virginia is a lot cheaper LOL

[kcrossley]

Well to clarify, I'm really comparing James City County, VA to Anne Arundel County, MD. Here's what I've found out so far. Everything is based on 2006 tax rates. Please feel free to correct this info as needed.

STATE TAXES
Income (Over 20k): VA $750 plus 5.75%, MD 4.75%
Sales: VA 4%, MD 5%
Groceries: VA 2.5%, MD 0%
Medicine: VA 0%, MD 0%

EXEMPTIONS:
Single: VA $900, MD $2,400
Married: VA $1,800, MD $4,800
Children: VA $900, MD $2,400

COUNTY TAXES (James City County, VA -vs- Anne Arundel County, MD)
Income: VA 0%, MD .0256%
Sales: VA 1%, MD 0%

(The following taxes are per $100 of assessed value)
Real Estate: VA .77, MD .918
Personal Property: VA 4.00, MD 2.295
Utility: VA (unknown), MD 2.295

BUSINESS TAXES (Still researching)
Business:
Personal Property:
Sales:

OTHER TAXES (per gallon)
Gasoline: VA .175 , MD .235
Cigarettes: VA .30, MD 1.00 (per pack)
Spirits: VA (unknown), MD 1.50
Wine: VA 1.51, MD .40
Beer: VA .26, MD .09

***
Of note is that Williamsburg real estate tax is ONLY .54 per $100 of assessed value. Wow! I wish I would have researched this more before buying a new home.

[rubytue]

Originally Posted by kcrossley

Well to clarify, I'm really comparing James City County, VA to Anne Arundel County, MD. Here's what I've found out so far. Everything is based on 2006 tax rates. Please feel free to correct this info as needed.

STATE TAXES
Income (Over 20k): VA $750 plus 5.75%, MD 4.75%
Sales: VA 4%, MD 5%
Groceries: VA 2.5%, MD 0%
Medicine: VA 0%, MD 0%

EXEMPTIONS:
Single: VA $900, MD $2,400
Married: VA $1,800, MD $4,800
Children: VA $900, MD $2,400

COUNTY TAXES (James City County, VA -vs- Anne Arundel County, MD)
Income: VA 0%, MD .0256%
Sales: VA 1%, MD 0%

(The following taxes are per $100 of assessed value)
Real Estate: VA .77, MD .918
Personal Property: VA 4.00, MD 2.295
Utility: VA (unknown), MD 2.295

BUSINESS TAXES (Still researching)
Business:
Personal Property:
Sales:

OTHER TAXES (per gallon)
Gasoline: VA .175 , MD .235
Cigarettes: VA .30, MD 1.00 (per pack)
Spirits: VA (unknown), MD 1.50
Wine: VA 1.51, MD .40
Beer: VA .26, MD .09

***
Of note is that Williamsburg real estate tax is ONLY .54 per $100 of assessed value. Wow! I wish I would have researched this more before buying a new home.

Interesting! Looks like you have most of your answer already
Usually, when this question comes up its folks with a job in DC wondering where they should move. Hence refering you to the Washingtonian.

Also, Virginia is an ABC state. That is probably why you can't find anything on the liquor taxes - its all state run. It was a weird concept when I first moved here, but I have come to like it. No worries about shopping around for the best price, since the ABC store in Fairfax has the exact same prices as the ABC store in rural Floyd County. They have sales on stuff too, just like a normal store.

[theburro]

Originally Posted by kcrossley

In terms of taxes (sales, income, personal property, fuel, etc.), is it better to work and live in Maryland or Virginia?

We have lived in both States within the last 20 years. My experience is that Virginia counties are significantly higher than the "typical" Maryland county. The more out-of-control the growth in a particular Virginia county, the higher the taxes (e.g., Loudoun, Prince William) since the sprawl development creates tremendous demands for county services, esp. new schools. Also, MD has had the good common sense to pass some of these public costs on to developers as impact fees, whereas in Virginia, impact fees are illegal and the allmighty developers get to skate by and pocket the profits. Also, MD re-asesses real estate on a 3-year rotation v. yearly in VA. This scheme always favors the taxpayer whenever R.E. is going up, as it has for the last 14-15 years. BTW, I also own land in NC where the asessments are every 7 years.
We also lived in Tennessee - no income tax - and it is certainly cheaper, but that is reflected in the generally poor quality of schools and public services.

[kcrossley]

I guess I was most surprised by the small tax exemptions in Virginia as compared to Maryland. For my family it amounts to $6,000/year. Please tell me that I'm wrong about this or that these exemptions are offset someplace else within the Virginia tax code.

Here's an interesting article about tax burden by state, which shows that Virginia favors Maryland, but it may because income per capita is also lower in Virginia. http://www.retirementliving.com/RLtaxburdens.html

[theburro]

Re, personal property taxes. I have no recollection of paying this in Maryland - I think it iis reserved for things like airplanes and expensive boats. There is a MD title tax on vehicles that is rather painful. Virginia, on the other hand, has the dreaded "car tax" where you pay a percentage on the same vehicle year after year after ...... Several years back, Richmond limited the car tax by exempting the first $12, 000 or something and reimbursing it back to the counties. Then the state got in serious financial trouble during the Gilmore administration and they capped the county reimbursements. Now the car tax keeps increasing every year w no end in sight.

[kcrossley]

So if all of my information so far is correct, If I live in Maryland I'll pay a LOT less taxes than Virginia. Is this correct?