Maryland lawmakers approved an income tax hike that impacts most six-figure earners in the state, which has some residents thinking about leaving. News4's Richard Jordan explains the impact on taxpayers and the reason some say they don't mind paying more.
A new round of income tax hikes that state lawmakers approved in Maryland have many residents looking at the possibility of relocating.
Maryland legislators voted to raise income taxes for single filers who make more than $100,000 and for joint filers who make more than $150,000.
Joe Henchman, who works on tax policy for legal and state projects, said he doesn't see an easy way for Maryland taxpayers to sidestep the half percent hike.
“You are going to pay the amount no matter what unless you earn less income or have another kid or move,” he said.
The latest increase means a single worker earning $100,000 a year will pay about $250 more than last year before deductions, but you can really see the difference when the variables change. The tax foundation created a scenario:
A family of four with two adults and two children living in Montgomery County earning a combined annual income of $250,000 in Maryland pays almost $1,000 more than a family in D.C. in the same circumstances and $6,124 more than an identical Virginia family.
That substantial difference might have some people in Maryland look over at Virginia and wonder if it’s worth a move.
“The comptroller of Maryland Peter Franchot says he has evidence that a lot of people have been leaving because of this higher income tax,” Henchman said.
But there are also many who say Maryland will always be home.