Tax difference between counties (Pittsburgh, Penn: renter, to buy, income)

[Pixxiedust]

As a renter, would it really make a big difference if I live in Allegheny county vs let's say, Peter's township or Cranberry, if my husband is working in downtown? Are the taxes determined by where you work or by where you live, or both? I'm kind of confused. I'm spoiled by the fact that in FL we just pay federal taxes and that's it. I want to make sure I understand what we're getting ourselves into.
Thanks in advance!

[squarian]

Originally Posted by Pixxiedust

I'm spoiled by the fact that in FL we just pay federal taxes and that's it.

I'm confused too - do you mean the state of Florida operates on no revenue?

[RedBall]

Originally Posted by Pixxiedust

I'm spoiled by the fact that in FL we just pay federal taxes and that's it.

lol

[Clint.]

Penny pinchers of the world unite and take over.

[gg]

Originally Posted by squarian

I'm confused too - do you mean the state of Florida operates on no revenue?

No state income tax in Florida. There are property taxes, but they are of course MUCH lower than here. I think from a renter's standpoint, the OP is saying, they only pay Fed income tax because all other taxes are in the rent itself. I don't believe there is any wage taxes, but it has been a very long time since I got paid in Florida, so that may have changed.

If you are renting, the tax difference will be a state tax and an wage tax. In the suburbs you will most likely pay 1% wage tax. In the city, it is around 3%, or 3 1/2? I can't remember, but it is a lot. As far as living outside the county, as a renter it might not be worth it.

[greg42]

Originally Posted by Pixxiedust

As a renter, would it really make a big difference if I live in Allegheny county vs let's say, Peter's township or Cranberry, if my husband is working in downtown? Are the taxes determined by where you work or by where you live, or both? I'm kind of confused. I'm spoiled by the fact that in FL we just pay federal taxes and that's it. I want to make sure I understand what we're getting ourselves into.
Thanks in advance!

The difference between counties you'll see discussed on here has to do with property tax. This is effectively meaningless when you rent as long as the rent is in your price range. I suppose it could come into play if you want to rent in an area you might like to buy in later, in that you may find you're wishing to buy outside the Allegheny County line to have your money go a little further.

There is income tax in PA, though, which you don't have in FL. There is a flat rate state income tax at 3.07%. And then there is a local earned income tax, commonly known as wage tax. ("Earned" income only comes from wages and similar compensation, hence the nickname. Investment income, dividends, interest, etc. are not subject to this kind of tax.) The local wage tax can vary somewhat based on the specific municipality where you live. It is based on where you live and not where you work. If you live in the City of Pittsburgh, this wage tax is 3%. If you live outside the city (regardless of county), in most cases it is 1% although there are a few exceptions out there.

[Pixxiedust]

Originally Posted by greg42

The difference between counties you'll see discussed on here has to do with property tax. This is effectively meaningless when you rent as long as the rent is in your price range. I suppose it could come into play if you want to rent in an area you might like to buy in later, in that you may find you're wishing to buy outside the Allegheny County line to have your money go a little further.

There is income tax in PA, though, which you don't have in FL. There is a flat rate state income tax at 3.07%. And then there is a local earned income tax, commonly known as wage tax. ("Earned" income only comes from wages and similar compensation, hence the nickname. Investment income, dividends, interest, etc. are not subject to this kind of tax.) The local wage tax can vary somewhat based on the specific municipality where you live. It is based on where you live and not where you work. If you live in the City of Pittsburgh, this wage tax is 3%. If you live outside the city (regardless of county), in most cases it is 1% although there are a few exceptions out there.

Thank you!