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With federal tax day approaching, Washington area families are also contending with a high state, county and local tax burden, with a typical household in some Maryland suburbs facing more than $15,000 in combined non-federal taxes, while Northern Virginia families get off a bit easier at about $13,000.
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There are marked philosophical differences between how area jurisdictions tax residents. In Maryland counties, unlike Virginia, the 6 percent sales tax does not apply to groceries. But the higher taxes overall are driven by Maryland counties’ ability to impose a local income tax - 3.2 percent in Montgomery and Prince George’s. Combined with a state income tax rate of about 4.75 percent, most employed Marylanders in the D.C. suburbs end up paying nearly 8 percent on every dollar earned.
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