Age old question - where to domicile
We have been fulltiming for 4-months now and are giving real consideration to doing this long-term. Part of that decision is selecting a domicile. Now, about us... I am in my mid-30s, work fulltime...
Forum Discussion
Interesting running in to you here...This is E. Powers.
Anyhow, I have some advice.
If your employer is located in MD, MD is still going to to collect income tax from you even if you don't actually 'live' in MD.
As you already know, the tax rate is high and even if you domicile in a non-tax state you still have to pay MD tax.
The good news is that PA and MD have income tax reciprocity and PA's tax rate is about 1/3 (for me personally) less than MD. Insurance (auto) rates are less (maybe county based?) and vehicle registration is also much less. As an added bonus, NO impact fee or excise tax when titling in PA. If you are a gun toting person PA carry permits are very easy to get and widely accepted around the country. Also, for the little ones PA offers vouchers (in most cases) for schooling and options include access to online learning opportunities and support for homeschooling.
For us splitting our time pretty evenly between FL, MD, and PA and earning the bulk of our income in MD, i choose PA.
If/when we are of retirement age i think there are better options but for now PA is the best option i could find.
If you want specific numbers or info i'd be happy to share.
Anyhow, I have some advice.
If your employer is located in MD, MD is still going to to collect income tax from you even if you don't actually 'live' in MD.
As you already know, the tax rate is high and even if you domicile in a non-tax state you still have to pay MD tax.
The good news is that PA and MD have income tax reciprocity and PA's tax rate is about 1/3 (for me personally) less than MD. Insurance (auto) rates are less (maybe county based?) and vehicle registration is also much less. As an added bonus, NO impact fee or excise tax when titling in PA. If you are a gun toting person PA carry permits are very easy to get and widely accepted around the country. Also, for the little ones PA offers vouchers (in most cases) for schooling and options include access to online learning opportunities and support for homeschooling.
For us splitting our time pretty evenly between FL, MD, and PA and earning the bulk of our income in MD, i choose PA.
If/when we are of retirement age i think there are better options but for now PA is the best option i could find.
If you want specific numbers or info i'd be happy to share.
