some1blessed
New member
- Joined
- Mar 21, 2011
- Messages
- 1
The first position is in Pennsylvania, earning $50,000 a year. You found a starter duplex that you can purchase with the assessed value of $75,000. Property taxes average 2.975% of the purchase price. The state sales tax is 6% on purchases, but this does not apply to food and clothing. The state income tax is 3%.
•The second offer is in Maryland. You would earn $65,000, with a starter duplex assessed at $135,000. In Maryland, property taxes are 2.4% of the purchase price of the property. The sales taxes are 1% higher than in Pennsylvania, and it also applies to food and clothing. Maryland's state income tax is 1.5% higher than Pennsylvania's.
annual purchases are approx. $18,000 plus an addtl. $6,000 in food and clothing
•What is the difference in cost of living between the 2 locations based on the differences in sales tax, income tax, and property tax?
(Hint: Property tax only applies to housing, state sales tax only applies to purchases and food and clothing when applicable, and income tax only applies to the salary):
Tax PA
Salary 50,000
Purchases 18000+1080=19080
Food and Clothing 6,000
Property Taxes 75000(0.02975)=2231.25
Sales Taxes 18000(0.06)=1080
State Inc. Taxes 50000(0.03)=1500
Tax MD
Salary 65,000
Purchases 18000+1260=19260
Food and Clothing 6000+420=6420
Property Taxes 135,000(0.024)=3240
Sales Taxes 18000=6000x0.07=1680
State Inc. Taxes 65,000(0.045)=2925
Difference
15,000
180
420
1008.75
600
1425
This is what I have so far, am I doing this correctly. If you could guide me in the right direction I would very much appreciate it. Thanks in advance for your help.
•The second offer is in Maryland. You would earn $65,000, with a starter duplex assessed at $135,000. In Maryland, property taxes are 2.4% of the purchase price of the property. The sales taxes are 1% higher than in Pennsylvania, and it also applies to food and clothing. Maryland's state income tax is 1.5% higher than Pennsylvania's.
annual purchases are approx. $18,000 plus an addtl. $6,000 in food and clothing
•What is the difference in cost of living between the 2 locations based on the differences in sales tax, income tax, and property tax?
(Hint: Property tax only applies to housing, state sales tax only applies to purchases and food and clothing when applicable, and income tax only applies to the salary):
Tax PA
Salary 50,000
Purchases 18000+1080=19080
Food and Clothing 6,000
Property Taxes 75000(0.02975)=2231.25
Sales Taxes 18000(0.06)=1080
State Inc. Taxes 50000(0.03)=1500
Tax MD
Salary 65,000
Purchases 18000+1260=19260
Food and Clothing 6000+420=6420
Property Taxes 135,000(0.024)=3240
Sales Taxes 18000=6000x0.07=1680
State Inc. Taxes 65,000(0.045)=2925
Difference
15,000
180
420
1008.75
600
1425
This is what I have so far, am I doing this correctly. If you could guide me in the right direction I would very much appreciate it. Thanks in advance for your help.
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