moving to Southern MA or Northern CT?? (Springfield, Holyoke: to rent, credit)

[ds2227]

Hello, my wife could be offered a job in Springfield, MA. We’re both unfamiliar with this particular region and we’re trying to determine which state would be more beneficial for us (CT or MA). CT is an option b/c while my wife works in MA, I’ll be concentrating my job search in Hartford.

For tax reasons, should we choose one state over the other? We’re both middle / working class (she’s in Education and I’m in media and we also have a 2 year old w/ plans of another in the future).

Based on maps alone, we would ideally like to be located somewhere between Northampton, MA and Hartford, CT, w/in 20 minute driving range from I91.
Before we narrow our search down to areas/ towns, we want to determine which state offers the most, for a working couple like us.

If we can, should we avoid living / working in separate states or does it really not make much difference?

Thanks for taking the time to read this.

[holden125]

The states are fairly similar. I prefer MA to CT, but that's a personal thing. Each state has some very nice towns and some that are less appealing.

If you live/work in separate states, you'll have to file state income tax returns in both states. That doesn't mean you'll have to pay double tax or anything. If you work in CT and live in CT, but she works in MA, she'll pay income tax to MA and get a credit on the CT return for the amount paid to MA. You do have to deal with more paperwork, though. CT income tax is slightly lower (5% vs. 5.3%), but the towns in CT tend to have higher property taxes so that's largely a wash.

Both states have a car tax. It's probably closer to even if you have a fairly expensive late-model car, but for a car even a few years old, CT will be more expensive. In CT the tax is based on the car's current estimated value (not personalized for your car, just the make/model). In MA the tax is payable to the town, but the formula used to calculated it is the same statewide. The MA excise tax gets far lower if the car's even 3 or 4 years old. In 2011, the MA excise tax on a 2007 car originally worth $30,000 will be $75.

If the same 2007 car is still worth even $15,000 or so, you'd pay a few hundred in tax in CT. The car's treated as property subject to property tax, just like your house, and the tax rate (called the "mill rate") varies from town to town. From what I know, many towns levy it at anywhere from $20 to $40 per thousand, on 70% of the car's estimated current value. So $15,000 x .70 = $10,500. If the town's mill rate is $20, you pay $210. If it's $40, you pay $420.

This may not be a reason to avoid CT. In fact, if you're looking to work in Hartford, I wouldn't recommend commuting from north of Springfield. I'd focus on CT north of Hartford, or the MA towns nearest the border like Longmeadow, East Longmeadow, Agawam, etc.

[wmass]

The general concensus is that taxes/cost of living are less in MA, especially property taxes. Northampton is considered a very desirable, vibrant town, though it is about a 45 minute commute to Hartford (some people do it). Otherwise Longmeadow has a reputation for the best schools around Springfield and is very commutable to both Hartford and Springfield. It is, however, a bit of a sleepy bedroom community.

[Homer12]

I just went through a very similar search. I am not sure what your price range is, but my wife and I narrowed down towns and then found homes. We were set on living in CT, looking at Somers, Granby, East Granby, and Suffield. All were very nice towns, we would have been happy in any of them. Our agent then took us through Southwick, MA and we loved it. We just put an offer on a home in Southwick in a golf community called The Ranch, beautiful community.

All these areas fit the criteria of what you explained as well as Longmeadow, East Longmeadow, and Agawan.

Good Luck

[ds2227]

Thank you all so much for these responses. I think that we'll now be focusing on Southern MA, as opposed to CT. Since we're coming from another state down south, I think the last thing I want to avoid is an extra state / paper issues, come tax time. We're also not going to buy a home for at least a year, so we can get ourselves settled in and find out which area is best.
We're definitely going to concentrate on these towns you all mentioned ( Longmeadow, East Longmeadow, Agawan, and Southwick).

Does anyone have a (patient) relater to recommend? Again, we'll be looking to rent at first (probably a town home / small house), and will buy once we have a focus on our situation.
If all goes as planned, we'll start our move around the end of Feb.

Again...Thanks for these great responses.

[thenewtexan]

Great choice of towns. Wilbraham is also a desirable option. It has great schools comparable to Longmeadow. I'm not sure if Agawam has changed. You might get more bang for your buck there. Of course, you can't go wrong with the Longmeadows. Southwick is a nice, quiet town. Just avoid Springfield and Holyoke, and you'll be all set.