MD vs VA | Maryland vs Virginia Taxes EXPLAINED!

Maryland vs Virginia Taxes
For the most boring topic in the world - taxes, let’s try to make this fun.
Let’s do a case study. Mercina and Leia each got jobs in the DC Metro area and they are trying to decide whether to move to Maryland or Virginia.
Leia’s salary is $90,000 because during her interview, she said the following:
1. Putting on a shirt is the least favorite part of my day.
2. Your brain is so small.
3. My butt crack should be in a museum
4. Everyone’s teeth here are on the outside of their mouth.
Mercina’s salary is $200,000 because she didn’t talk back during her interview.
Annie and Ziggy are job-sharing since they each sleep about 18 hours a day. They are making a combined $275,000. Good job Annie and Ziggy! You always were my favorite children.
Maryland & Virginia: Income Taxes
All information here comes from MarylandTaxes.gov.
Maryland: For incomes of $3000 to $100,000, you will pay a nominal fee of $90, plus 4.75% of excess over $3000.
Once you pass $100,000, you move to a different schedule, where the fixed fee rises sharply as does the tax rate. www.marylandta...
You get a slight break if you’re filing as head of household or married, the spread in the income gap gets larger, fees are higher but the percentage increases are not as much. Let’s take a look.
Leia, making $90,000, would pay $4222.50 whether she was married or single.
Mercina, making $200,000 would pay $10,010 if single and $9634.50 if married / head of household.
Annie and Ziggy, making $275,000, will pay $14,197.50 if they file as single and $13,697 if filing married / head of household.
One extra surprise, the counties in Maryland also levy income taxes. Montgomery County and Prince George’s County both assess 3.2% of your taxable income. Let’s take a look now at what happens.
Leia’s total taxes on $90,000 salary are $7102.50.
Mercina’s total taxes on $200,000 are just over $16,000.
Annie and Ziggy have to pay nearly $23,000 to Maryland on their salary of $275,000.
Virginia: Virginia’s tax tables are nothing like Maryland. Anyone making $18,000 or $180,000 pay the same. Anything over $17,000 is taxed the same amount of $720 flat plus 5.75% of anything in excess of $17,000.
And, done! Aside from a few towns in the Commonwealth, the counties charge no income tax. Virginia is set up so that the county governments have very little taxing authority.
Maryland & Virginia: Property Taxes
Maryland has 23 counties and 156 incorporated cities which each issue property tax assessments. Because I’m a metro DC Realtor I’m going to only cover Montgomery and Prince George’s Counties.
Maryland & Virginia: Other Taxes
Virginia has a personal property tax on vehicles, trailers, RV’s and boats which may equalize if you have a lot of vehicles. In Arlington it’s now $5.00 per $100 of assessed value. What’s the personal property tax cover? Vehicles, boats, trailers, mobile homes and airplanes. How do they assess a value? They check the NADA Used Car Guide for the clean trade-in value for the year. Does Maryland have that? They do not - at least not for individuals. MD personal property tax is on Business-owned furniture, fixtures etc.
Right now, for Leia with her $90,000, it looks better to live in Virginia where she will pay $2000 a year less in income taxes. But what if she has a car? And what if her car is assessed at $35,000? She will pay $1445.50 a year in taxes on her vehicle. It goes down as the vehicle depreciates. But as we know, cars have not been depreciating much since Covid. My 2016 mom car was $40,000 new and assessed at $25,000 now, and that would be $1250 a year in car taxes. Except we have my husband and an additional travel vehicle, and suddenly that income tax savings isn’t looking so great.
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If you have any questions about this video, leave a comment! If you have questions about real estate in DC, Maryland or Virginia, my contact info is below.
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Melissa Terzis
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🌐 www.dcrealesta...
TTR | Sotheby's International Realty
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Thank you for watching! =)
- Melissa Terzis | DC Real Estate Mama

[@MadSUPANOVA]

When you do videos like this.. it is best to use the average income of the state the 99 percenters' instead of the politicians 300k+ incomes... then the majority of people can relate

[@DCRealEstateMama]

Thanks for watching! I tend to go a few price points that people can calculate from, and also go through the brackets so everyone can figure out where they fit in.

[@missbttrsctch]

This was nice and you all are so cute!

[@DCRealEstateMama]

Aww thank you so much! And thank you for watching!

[@stevenmflores]

Very informative video. Thank you guys. I’m going to have to barrow though. (MY BUTT CRACK BELONGS IN A MUSEUM!). 😂

[@DCRealEstateMama]

Ohhhh I've got a whole list of them out of that child. One time she was mad at dad and she said, "Mom, please tell your husband that I'm not talking to him."

[@stevenmflores]

😂 Awesome 🤩

[@DCRealEstateMama]

@@stevenmflores LOL. Living with her may be less fun!

[@DavidFoster-ef5vr]

That was a great video.

[@DCRealEstateMama]

Thank you so much! Let me know if you need any help with anything!

[@k9builder]

My 1996 Ford is going to probably cost me around $200 a year in Virginia. That is livable.

[@DCRealEstateMama]

Older cars for the win!

[@k9builder]

@@DCRealEstateMama However, I will have to contend with the annual safety inspection. That is something that we don't do here in Washington state.

[@DCRealEstateMama]

@@k9builder That is really interesting. No inspections in Wash State? I always think of the west coast as more environmentally-friendly with their approach. But that said, it's somewhat hard to fail inspections here from what I've heard. I've only done inspections in DC which used to be tougher and now they have pretty much reduced it to the minimum safety features like "do your signals work" and that's pretty much it.

[@reabo22]

I wasn't expecting that 🤣🤣🤣

[@DCRealEstateMama]

Haha, I'm afraid to ask what you mean?