Any people Move or Retire to Maine Instead of NH because of NH Property Taxes (Bangor: sales, house)

[Brave Stranger]

I'm curious if any people have decided to move or retire to Maine instead of NH bcause of the high NH property tax rate in most towns. I'm also curious if people who made that choice also settled near the NH border to enjoy the NH no-sales tax enviroment ? In this day & age it seem like a smart way to set up a household since the 2 states share many of the same demographics & geography.

[bangorme]

LOL, why would anybody live in Maine vrs NH from a tax perspective (see: The Tax Tale: 50-state comparison - JSOnline). I suppose if I earned no taxable income (almost 50% of the population) then maybe the border idea might be worth looking at.

[Brave Stranger]

The property tax in a lot of NH towns are becoming astronomical for starters. Retired people living on the border can save a lot of cash on sales tax in NH & with no taxes on clothes in NH & auto work & on & on it tends to add up. I suppose the income tax on working people in Maine can be brutal, so perhaps it's retired people who can play this angle best.

[Submariner]

I am retired. I went for Central Maine because land prices and property taxes are so much lower than Southern Maine [or most other states I have lived in]. As you guys have already pointed out no income taxes on small pensions.

So it is a clear win!

[jdhpa]

Originally Posted by bangorme

LOL, why would anybody live in Maine vrs NH from a tax perspective (see: The Tax Tale: 50-state comparison - JSOnline). I suppose if I earned no taxable income (almost 50% of the population) then maybe the border idea might be worth looking at.

The article says Alaska has the highest income tax, but Alaska doesn't have a personal income tax (it does have a corporate income tax). I suppose they're using both to determine tax burden.

[bangorme]

Originally Posted by Submariner

I am retired. I went for Central Maine because land prices and property taxes are so much lower than Southern Maine [or most other states I have lived in]. As you guys have already pointed out no income taxes on small pensions.

So it is a clear win!

Well, I think Maine exempted the first $6,000 until this year, when it goes up to $10,000. So yes, if you have a pension under that amount, then Maine might be OK. Why that exemption was raised is because retired people (that pay taxes) are leaving Maine in droves.

[bangorme]

Originally Posted by Submariner

I am retired. I went for Central Maine because land prices and property taxes are so much lower than Southern Maine [or most other states I have lived in]. As you guys have already pointed out no income taxes on small pensions.

So it is a clear win!

That's funny. The highest property taxes I've EVER paid were in Caribou. See, let's say you live in a $150,000 home and it is in the top 10% in the town, you will bear a large portion of the towns assessment that has very little to tax of value. Now, if you own a $150,000 house in Cape Elizabeth, you'll be on the bottom (in a town with a large residential tax base) and pay very little.

[Coaster]

Originally Posted by bangorme

Well, I think Maine exempted the first $6,000 until this year, when it goes up to $10,000. So yes, if you have a pension under that amount, then Maine might be OK. Why that exemption was raised is because retired people (that pay taxes) are leaving Maine in droves.

Bangorme, do you have a source for that statement? I ask because Maine has been a retirement mecca for more than 25 years now, and the fact that it has the oldest population in the country supports that. If it has changed, I'd love to know about it.

[bangorme]

Originally Posted by Coaster

Bangorme, do you have a source for that statement? I ask because Maine has been a retirement mecca for more than 25 years now, and the fact that it has the oldest population in the country supports that. If it has changed, I'd love to know about it.

Well, here's one I found in about 15 seconds: Time to nix pension income tax, LePage says | The Morning Sentinel, Waterville, ME

But really, it's just common sense. Why would the Governor (a fiscal conservative) be trying to exempt pension income from income taxation if it wasn't to keep these people here paying other taxes? Yes, we've got tons of old people here, but too many of them are takers, not givers (Obama supporter types), and the older they are, the more expensive they are.

[Coaster]

Thanks for the link. The info about the Maine Revenue Service guy was very helpful.