Quick tax question

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Old 04-20-2004, 07:08 PM
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Default Quick tax question

If you work in DC, and live in VA, do you pay DC or VA income tax?


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Old 04-20-2004, 08:16 PM
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Default VA

MD/DC/VA all have an agreement with each other that you pay state income taxes based on your residence.
Old 04-20-2004, 08:28 PM
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Default Really?

So if one were one were going to pick between MD/VA, what is the more advantageous place to lived based upon income tax.
Old 04-20-2004, 08:46 PM
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Default Well

I'm not tax expert. I can only speak from personal experience. I moved from Montgomery County, Maryland to Loudoun County, Virginia. My CPA figured out that I pay $2000 less in income taxes per year. This was back in 99.

The flip side is you have car tax in VA, but that's not really that much.
Old 04-21-2004, 05:31 AM
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Default i think County matters too. Montgomery Co has extra taxes. But VA is overall less

even with the car tax.
Old 04-21-2004, 07:20 AM
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Default MD income tax also varies by county, from 1.25% all the way up to 3.15%

two helpful links:
<a href="http://individuals.marylandtaxes.com/incometax/localtax.asp">Comptroller of MD site</a>
<a href="http://dab.nfc.usda.gov/pubs/docs/taxformulas/formulas/statecitycounty/taxmd/taxmd.html">Withholding information/calculations</a>
in order to get DC and VA tax rates with that 2nd link, just replace md in "taxmd/taxmd.html" with dc or va
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