squirrels
Who cooks for you?
- Jan 25, 2008
- 4,021
.
Last edited:
never heard of it, but this state would tax my poop if they could weigh it
Not that I know of, but if you move to PA you'll be paying an Occupational Tax (1% of your income) to the Commonwealth.
never heard of it, but this state would tax my poop if they could weigh it
Not that I know of, but if you move to PA you'll be paying an Occupational Tax (1% of your income) to the Commonwealth.
Pa taxes can be cheaper BUT a lot of the places right across the line are pretty high tax wise because they have had an explosion in growth because of houses being a little cheaper because of the higher taxes.Still seems cheaper than MD tax to me.
Still seems cheaper than MD tax to me.
They have a lot of little taxes. Check with some of the locals on how to minimize them. One example I heard many years ago was instead of putting something like factory manager you would put factory worker so it changed the rate or something like that.
I think it depends where one is located, especially for property owners. There are county taxes, then borough taxes, and if you're in a township — township taxes, and the closer you are to the school, the more the school tax is. I was looking a lot of property this time last year, and for our price range we probably would've paid close to $3K in taxes combined, which is about 30% more than what I'm paying to own property in Baltimore. However, property value is more affordable, the cost of living is lower than most of MD, so to me it evens out. A rather small price for freedom, if any more at all.
You're right, there's a lot of variables, I've been looking into this for a few years now. Overall, it is not a deterrent to me, but rather a situation to unravel to best suit our needs.
I've done the living in PA thing before.
My state tax rate was 3.07%, my local tax being 1.65%.
In Maryland, my marginal tax rate is 4.75% and my local tax rate is 2.56% in Anne Arundel Co.
Kept quite a few more Benjamin's in my pocket in PA, especially with astronomically lower auto insurance. Note that the tax brackets I pulled were for the same salary range in each state, so there's no disparity between brackets. Even with the 1% Occupation tax, it's still way cheaper than living in Maryland. I should also note that I'm not a property owner, so I speak to income tax alone.
Note also that PA doesn't tax clothing purchased in the state, so long as it isn't formal evening wear.
So I sold my house in White Marsh in 2013 and am renting (sort of) a house in Cambridge right now. My understanding is that since it was my primary residence, anything under $250k that I make from the sale (made less than 100K) is non-taxable.
So that money is being used as a DP/closing for a new house across the PA line.
Someone I know at work, though, said that they were also planning to move to PA, but MD tried to hit them with a "relocation tax". I can't find any Google reference to such a tax.
Does such a thing exist? Or is it just something that someone was CALLING a "relocation tax" because they got a lot of equity out of selling their house, enough that it was taxable because they didn't re-buy in MD?