NH v. MA - TAXES (sales, mortgage, loan)

[WinterWonder]

Struggling with the tax scenarios. I posted this in MA forum to get their opinons as well.

We are relocating up to the Southern NH / Northern MA area, from NJ. At first glance, NH looks better - no sales tax or state income tax. But property taxes - most homes we are looking at are between 5-8K per year. And while this is alot less than NJ's property taxes, when looking at northern MA / suburbs of Boston, we are seeing same size homes for 3-4K per year, literally half the taxes of MA. So what the house costs more? If you have a decent salary, you can pay the mortgage down and be done with it. But property taxes? You are stuck with them - FOREVER. And they keep going up .

So we are confused. I am a tax accountant in a busy season now. And as soon as that's done I'm going to sit down and try to do a detailed comparison of the 2 states, side by side, taking all taxes into consideration. If anyone has any input for me, let me know. Thanks!

[OCCASparky]

Bottom line, as you well know, state and property taxes are deductible from your federal income tax anyway.

And really, what's worse? 2 percent property tax on a house that costs $300K or 1 percent tax on a smaller house that costs $600K?

People gripe about it because they actually have to scratch the check--in other words, it's not something automatic like the confiscatory taxes in Mass, Maine, and elsewhere.

[mal7014]

You get more for your money in NH. Live and work in NH if you can. A lot of people in Southern NH have to commute to MA to make the big bucks so they end up paying MA income tax as well. If you can make enough money in NH, live and work there. Unfortunately, I'm one of the suckers that has to commute down 93 and give my hard earned money to MA. But they give me the higher paying job that more than makes up for the taxes I have to pay. If I could find an equal paying job in NH (impossible), I'd never leave the state.

[Valerie C]

Taxes in NH are high, there is no doubt about it. Some towns much more so than others. And at present, no income or sales tax (this will probably change in the not so distant future. And don't think for a minute that your property taxes will go down when that happens....)

My advice would be to consider the taxes in both states (and you as a tax accountant can do that much better than I...) but not to let that be your deciding factor. Move to NH because you want to live in a state where you can still think for yourself on many issues. Chose a state where there is still some open space. Many towns vote their budget at Town Meetings once a year... are you willing to attend this all-day event to have a say in the budget for the following year(s), and be willing to voice your opinion?

Regarding NH homeowners writing their own property tax check--not necessarily so. If you buy with 20% or less downpayment, your taxes are escrowed as part of your monthly mortgage payment. Only if you have plenty of equity in your home do you have the pain of writing your own check...

WinterWonder... feel free to email or PM for info on various towns, taxes, schools, etc once your busy season is done

Originally Posted by WinterWonder

Struggling with the tax scenarios. I posted this in MA forum to get their opinons as well.

<snip>


So we are confused. I am a tax accountant in a busy season now. And as soon as that's done I'm going to sit down and try to do a detailed comparison of the 2 states, side by side, taking all taxes into consideration. If anyone has any input for me, let me know. Thanks!

[imagine]

The overall tax burden is LESS in NH.

NH has one of the lowest overall tax burdens in the U.S. -regardless of your income. (Look it up for yourself)

[WIMU]

I paid 5000 in property taxes in OH for a 270,000 house plus 6.5% income and 6.5% sales tax and my wife paid 2% city tax. I don't consider paying my 5600 for a 300,000 house that outrageous in NH considering no sales or income tax. I would rather pay 1500 in fees here than 7000 in sales and income to other states. Plus OH still did not have enough money to balance their ballooning budget shortfall which has been said open the door and it will never close again just get wider and wider open.

[OCCASparky]

Originally Posted by Valerie C

Regarding NH homeowners writing their own property tax check--not necessarily so. If you buy with 20% or less downpayment, your taxes are escrowed as part of your monthly mortgage payment.

Not necessarily. I purchased by first home with 20 percent down and did an impound account (for a year), whereas with the home I just bought here I put nothing down and, had I wanted to, NOT done an impound account--why give the bank an interest-free loan for six months to a year?

In the end, however, I simply decided to do the impound account for peace of mind, knowing the money was there and I couldn't touch it or mess with it.

[399083453]

As far as I know, if you move to NH and work in MA you pay MA taxes.

[mal7014]

Originally Posted by 399083453

As far as I know, if you move to NH and work in MA you pay MA taxes.

You are correct.