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Tax-Scholar
Tax-Scholar, CPA
Category: Tax
Satisfied Customers: 89
Experience:  Helping customers comply with and plan for income taxes
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I am moving east and am trying to determine the best place

Resolved Question:

I am moving east and am trying to determine the best place to live. My options are Pennsylvania, Maryland, Virginia, and West Virginia. My new company's HQ is in Johnstown, PA, but I will be working from home and traveling to the customer sites. Currently, I live in Nevada with no state income tax, but a sales tax rate of 8.1%. I am retired from the military and receive a pension that is currently not taxed either. My income, excluding my military retirement will be approximately $150,000. With my retirement, ~$190,000, and if my wife works ~$230,000. Our question is which of the four states we're considering is the smartest financially with regard to taxes?
Submitted: 5 years ago.
Category: Tax
Expert:  replied 5 years ago.

Tax-Scholar :

States impose a tax for work performed within their borders. So if you are traveling to customer's you could potentially be paying tax in several states.

Tax-Scholar :

Typically your resident state will give a credit for taxes paid to another state. This way your income isn't taxed more than 100%.

Tax-Scholar :

You should ask your employer on if they will file a W-2 for in several states.

Tax-Scholar :

Maryland top rate = 5.5%

Tax-Scholar :

Penn = 3.07%

Tax-Scholar :

WV = 6.5%

Tax-Scholar :

VA = 5.75%

Tax-Scholar :

These are top rats but Penn is definitely the lowest. We would still need to factor in property taxes and sales tax.

Customer:

Thank you for this, it's what I thought from talking to people, but without the actual numbers. This information combined with the knowledge that PA doesn't tax my military retirement helps with our decision. Thank you for the quick response.

Tax-Scholar :

Your are welcome and let me know if I can be of any other help.

Tax-Scholar :

If there isn't anything else I can help with please accept my answer and provide positive feedback.

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