CT vs MA (Windsor: sales, apartment, renting)

[8hrdrive]

I will be starting a new job near Windsor Locks,CT in late October. We are relocating from Kansas. I have heard many varying opinions (from those I will be working with) on which state is better to live in. Of my coworkers, there are about 40% living in Mass and 60% living in CT.

My wife and I will be renting an apartment in the first 2 years of residency, and then hope to buy a home. I'm not concerned about schools just yet, as my children are both under 2 years old.

Are there any tax advantages of living in Mass and working in CT? I've heard all types of scenarios but I not sure I am getting unbiased opinions. Any help on this matter would be greatly appreciated.

Thanks,

[beachlady58]

I love the areas you are mentioning - My hubbie almost got relocated to Kansas and quite honestly I was freaking out!!! I prefer CT to MA but live in MA-just pick a spot near the water and you will be just fine.

[ogre]

Which state would be better in terms of everyday living would depend a lot on where you might live in either state. Given the fact that you are considering both states, I'm guessing that you'll be working somewhere near the border. There are probably towns in both states near your future work that would be nice, and others not so nice. It depends on the local community.

As for the best arrangement for taxes, you'll probably need to make a list of possible towns in both states and check the local situation with regard to property taxes. Something else to check out in MA has to do with a state law limiting the percentage by which municipalities may increase their property taxes from one assessment period to the next. The loophole is that local voters can override this law and raise taxes at a faster rate, if there's a certain percentage of the vote favoring the override. This being the case, it's a good idea to look into the override history of any MA town you might consider.

I'm not sure how the sales taxes work in CT. In MA, it's a state tax of five percent, with no local add-ons. Clothing (other than luxury items) and groceries are excluded from the sales tax.

A tricky area has to do with fees. I've never lived in CT, but I hear they kill you with fees, especilly those related to automobiles (fee to register your car, separate fee to buy the plates, inspection fee . . .). MA is pretty bad in this regard as well. I really don't know how the two states compare, but this is something else to check into.

I believe MA has a higher income tax than CT. If your question about taxes had to do with paying less income tax if you worked in CT but lived in MA, I believe there would be no advantage to this. I've never worked in one state while living in another, but I'm pretty sure that if you live in MA and work in a state with a lower income tax, MA will take the difference between the MA tax and the tax in the state where you're employed. For example, MA has a flat income tax of 5.3 percent. If you live in MA and work in a state that taxes you at four percent, I believe MA will tax 1.3 percent of your income.

It gets kind of complicated, but it all depends on where you're working, and what towns nearby in either state would work for you. Best of luck.