MA 2022 Question 1 (Boston: home, transfer, camping)

[ben young]

Mass. Always finding ways to spend others income.

[GeoffD]

Originally Posted by ben young

Mass. Always finding ways to spend others income.

Until this happened, that's generally not true. It's a flat state income tax. Everyone pays the sales tax. It's kept tax hikes in check because everyone has to pay them. In the 1970s, it was Taxachusetts. Now, the other Northeastern states other than New Hampshire have a far higher tax burden.

[massnative71]

Originally Posted by GeoffD

Until this happened, that's generally not true. It's a flat state income tax. Everyone pays the sales tax. It's kept tax hikes in check because everyone has to pay them. In the 1970s, it was Taxachusetts. Now, the other Northeastern states other than New Hampshire have a far higher tax burden.

I found the differences between Mass. and Maine to be negligible, possibly slightly favoring Maine. Sure the tax rates are higher, but up there it's based on the federal system where (unlike MA) you get most of the same deductions back so it ends up being pretty close. Property taxes were lower, and they also give you a statewide residential exemption that ends up knocking $500 or so off your annual bill. Sales tax is only 5% (and no local meals tax). Auto excise taxes are higher.

[GeoffD]

Originally Posted by massnative71

I found the differences between Mass. and Maine to be negligible, possibly slightly favoring Maine. Sure the tax rates are higher, but up there it's based on the federal system where (unlike MA) you get most of the same deductions back so it ends up being pretty close. Property taxes were lower, and they also give you a statewide residential exemption that ends up knocking $500 or so off your annual bill. Sales tax is only 5% (and no local meals tax). Auto excise taxes are higher.

For anyone making real money, 7.15% vs 5% starts adding up quickly.

[massnative71]

Originally Posted by GeoffD

For anyone making real money, 7.15% vs 5% starts adding up quickly.

Maine example

Earn $100K and have $20K in deductions, you pay $5298 in income tax.


Mass. example

Earn $100K and have 0 in deductions, you pay $5000 in income tax.



Squeeze another $5K in deductions, now you are paying less in Maine. Meanwhile, your property taxes could easily be $2K less in Maine. It's generally a wash.

[AtkinsonDan]

Originally Posted by massnative71

I found the differences between Mass. and Maine to be negligible, possibly slightly favoring Maine. Sure the tax rates are higher, but up there it's based on the federal system where (unlike MA) you get most of the same deductions back so it ends up being pretty close. Property taxes were lower, and they also give you a statewide residential exemption that ends up knocking $500 or so off your annual bill. Sales tax is only 5% (and no local meals tax). Auto excise taxes are higher.

That is the fundamental problem. A taxpayer cannot practice successful tax avoidance against federal income taxes and Massachusetts income taxes at the same time. For most people the federal tax is the bigger bite so they plan to mitigate federal income taxes but that means they get screwed on Massachusetts taxes. A typical homeowner with paid off student loans who commutes by personal auto really has nothing to deduct on Massachusetts income taxes. I started my career in Massachusetts as a renter and the only things I was ever able to deduct in MA were 50% rent, T-passes and student loans. Only the students loans were common to both federal and state taxes.

[GeoffD]

Originally Posted by massnative71

Maine example

Earn $100K and have $20K in deductions, you pay $5298 in income tax.


Mass. example

Earn $100K and have 0 in deductions, you pay $5000 in income tax.



Squeeze another $5K in deductions, now you are paying less in Maine. Meanwhile, your property taxes could easily be $2K less in Maine. It's generally a wash.

I said making real money.


And Maine property taxes vary wildly based on town. My mill rate is $9.40. Falmouth ME is $17.43.

[massnative71]

Originally Posted by GeoffD

I said making real money.


And Maine property taxes vary wildly based on town. My mill rate is $9.40. Falmouth ME is $17.43.

Define "real money". $100K is top 15% in Maine. $160K is top 5%. If you want to focus on outliers then fine, I was just finding more realistic examples of midde/upper-middle class that more can relate to. But you also need to consider that the more you make, the more "shelters" you tend to find so my math can still apply.



And the mill rates in Mass. vary widely by town as well. Braintree is like $10, while next door Holbrook is up around $20. Also Maine has MUCH lower assessments, in general. And remember, NO homestead exemption in MA.

[WestieWhitie]

Originally Posted by GeoffD

I said making real money.

We get it, you're rich, no need to remind us in every post.

[ben young]

I would talk to and speak to someone who I pay for advise and not go with a Mass forum.
I have MA. Properties Taxes are paid quarterly,meeting people in time before the election.