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The DC Metro Area covers the border of Maryland and Virginia. This overlap makes it a little complicated for people who want to live there, as they need to choose which state to become a resident of. With advantages to both, the question often falls to a choice between moving to Bethesda or Arlington — a decision that means finding the best realtors in Arlington, VA, and Bethesda, MD, to help. 

Since both Arlington and Bethesda are similar, it’s easy to think that either choice is not a big deal. But the reality is that they both have differences that might matter to you and your family. In this guide, we’ll summarize the main points in the Bethesda vs. Arlington debate that showcase one of them as Washington’s top district.

1. The Ugly Side: Taxes

When it comes to buying a home, many people overlook a crucial issue in favor of finding a good neighborhood and their dream home. But taxes can make or break your quality of living, and there’s a distinct difference between Bethesda and Arlington’s tax structure.

  • Income Tax: Maryland has a progressive tax structure that ranges from 2 to 5.75%, and Montgomery County (Bethesda) adds 3.2% for a local income tax. Arlington County (Arlington) has a similar progressive income tax but no additional rate for local taxes. This distinction can add up if you’re a higher income earner.
  • Personal Property Tax: If you own vehicles, this category matters. Maryland does not apply recurring annual taxes on vehicle values, but Arlington County’s tax rate is $5.00 per $100 of the assessed value of each vehicle.
  • Real Estate Tax: Montgomery County has slightly higher average effective rate than Arlington County. For those who purchase premium real estate, this often means thousands of dollars per year.
  • Sales Tax: Shoppers are always paying attention to sales tax rates. Maryland’s sales tax rate is 6%, while Virginia has a lower varied rate of 4.3% and up. When you shop in Maryland, the rate is the same everywhere, but Virginia’s tax rate changes by county. Arlington County’s sales tax rate is 6%. 

The cheaper place to move depends substantially on whether you have expensive cars, real estate, and income tax burdens.

2. The Economy

With Washington, DC, so close to both cities, it’s not surprising that the economies rely heavily on government jobs and businesses. However, major corporations often choose Virginia, not Maryland, to be their bases. From Amazon to Boeing, headquarters are found in the Northern area of Virginia. If you’re looking for a home near plenty of work opportunities, Arlington takes the prize.

3. Transportation

Hundreds of thousands of people commute to and from the DC metro area each year. This demand means public transportation needs to be reliable and accessible. You’ll have many options coming from both Bethesda and Arlington. Consider the main destinations you’ll be heading to, and look for a home within 30-40 minutes of a commute to those places. Arlington is closer to the DC metro hub, while Bethesda is preferable if you stay mostly in Maryland.

The Winner? Arlington for Financial Prosperity

Even the real estate in Arlington tends to be cheaper (although it’s still pricey, since the area is so in-demand). If you’re eyeing your bank account for more than the price of your mortgage, check out Arlington. The tax structure, job opportunities, and transportation could save you tens of thousands of dollars or more every year.