Comparison of NH Seacoast vs. Southern Maine (Dover, Portsmouth: sales, employment)

[steveusaf]

I posted this in the Maine forum - your thoughts? It's a wonder anyone lives within 30 minutes of the NH border.

Comparison of Southern Maine vs. NH Seacoast Area
I must be missing something here and would like some feedback.

I'll be moving back to the seacoast area of NH or Maine in 5-6 years after I retire from the AF. I'm looking at buying land now while it's a buyers market in order to have it paid off by that time. I was born in raised in Kittery, but have also lived in Portsmouth and Dover. I want to be within 45 minutes of Portsmouth, as I may work at the Portsmouth Naval Shipyard or the former Pease AFB upon retirement.

Property taxes are certainly higher in NH and lower in Maine, but only by $1-2K for a house/land valued around $300K (I want an acre or two or three with a 1800 sq ft ranch on it), depending on the town. I saw towns like the Berwicks coming in around $3000, Kittery around $4000, and Wells around $2500-$3000. NH towns that I looked at ranged from $4000 to $6000. Of course, this was an unscientific survey of comparable properties on the NH and ME MLS, looking at taxes paid for the previous year.

Income tax is an issue in ME. I paid it every year since I started working until I entered the AF. Back then, I don't believe I made enough to really pay a lot. I wanted to see if the lower property taxes in S. Maine would outweigh the $$ I would fork over to the State of ME in income taxes. Land is a little cheaper in ME, maybe 20% depending on the town. Sales tax is not an issue in this area because most shopping would be done a short distance away in NH.

I did a hypothetical calculation based on my projected financial situation when I retire (using today's dollars and tax rates). My military retirement is worth $40K. I assume I'd get a job that pays about $50K (not that hard in the seacoast area). I assumed about $20K per year for my wife's part time employment (nothing high paying). So about $110K total between the wife and I - solidly middle class.

I ran the numbers using a hypothetical Fed and ME 1040. I was shocked to realize I would pay $6129 in income taxes to ME, and that includes a $6K deduction for military pensions. So, if I lived in Maine (and worked in NH or Maine) and saved $2K in property taxes, I'd come out $4K in the red compared to living in NH.

That's a lot of taxes to live in an area that's not much cheaper than across the border in NH. And the money you save with the slightly cheaper land (one time savings) is offset by the yearly check to the Maine Dept of Revenue. I've seen the posts with the discussion back and forth talking about whether Maine is a low or high tax state. Based on my projected income and the property tax rates in the area I want to settle in, I'd say Maine is a very high tax state (at least the Southern part of it).

What am I missing here? It seems like people would be crazy to live 5-10 miles from the NH border and pay all that extra money in income taxes. Maybe I'm just making too much money to make it pay to live in ME? I know the first $38K or so of income is not taxed in ME, but from there it goes up dramatically (8.5%?). Property taxes would have to be a LOT lower to make paying that income tax worthwhile.

I know you folks up north will say "that's why we live in Northern Maine" - noted. I've got family on the Seacoast and want to settle there. What do you folks that live in Southern Maine have to say? I was always leaning towards NH because of the better economy and more fiscal responsibility that NH is known for, but this calculation I did today kinda seals the deal....

[Brave Stranger]

You answered your own question very well.....Maine is a lot more expensive. And you just know that on bad winter days you are going to shop in Maine and pay those sales taxes once & a while. There's no way to deal with an income tax rate of almost 9%, lol, it's like NYC rates.

[CrazyDave]

NH has a smal tiny seacoast but it is cheaper to live at
Maines seacoast is large and ruggedly beautiful but cost more
Solution?
Move to The Conway area, which is NH, is near the mountains and lakes, And which brings both New Hampshires and Maines seacoast within easy reach!

[Annabelle]

As someone who lived in southern Maine for 10 years and moved to the seacoast 10 years ago, I'd say you have done your homework and you're not missing anything. Go with NH!

[GregW]

Seem ta me the Maine coast is a bit moha down east en a mite pricier. All them taxes must buy somin' or the prpprety wodn't be worth that much.

[seamusnh]

Maine has become a liberal state with a lot of social services. That has attracted the type of people that take advantage of those social services (the net-takers of society) which has led to more social services and more politicians elected that promise even more social services.... A downward spiral... Maine is a nice place to visit....

BTW, NH has the highest per capita ex-military in the nation....

[NH2NCMom]

I know many people who live in the Berwicks or Lebanon and they live there because they felt the property taxes in NH were too high. However, a few of them (my mom and sister) did eventually move to NH and they are so glad they did. I rented in Maine and hated paying ME the income tax. I also now live in NC and hate the taxes we pay to the state...and it really does seem that you did your homework and came up with your own answer. I am from Dover for most of my life, and lived on Pease forever (or so it seems - ex hubby was part of the 509th SPS) and if I had to choose I'd still pick Barrington or Dover - grab the land there before it's gone

[buck naked]

"grab the land there before it's gone"


it's getting eaten up pretty fast, isn't it.... no wonder the prices are so high

new developments have sprung up everywhere

[GraniteStater]

This is why the purchase of conservation land and conservation easments are so important. We need to have those buffers against fast rates of growth.

[nicolem]

Originally Posted by GraniteStater

This is why the purchase of conservation land and conservation easments are so important. We need to have those buffers against fast rates of growth.

Thankfully we have the SPNHF. They have been instrumental in so many important conservation easements, land savings, etc. They are also smart and realize that land can be properly forrested with benefits to all. They work tirelessly to preserve open space. They are also one of the best rated charities when it comes to spending most of the dollars on the actual charity itself-instead of company cars, over priced vice presidents etc. I did read that unfortunately they will be laying off some workers as they are being affected by the economy like so many others.

My husband and I attended the annual meeting in 2001 which was their 100th anniversary. That is where they kicked off "NH Everlasting". Back then in 2001, the goal was to preserve one million NH acres in the next 25 years. They are continually working towards that goal.

We are also very fortunate that there are many people in this state who could have easily made millions upon millions selling their land to developers but chose not to. Instead, they took much less profit and donated land or formed conservation easements because they knew how very important it is to preserve the wonderous beauty of NH.