Taxes to expect in Maine (Penobscot, Freedom: sales, real estate, 2014)

[RiverBird]

We're going to be comparing our various taxes and fees in Mass. with those in Maine.

Income tax: I understand that Maine does not tax pensions or SS. What about income from assets (not real estate)?

Property tax: This is a big one in Mass. I know that prop tax varies from town to town. Is there a formula across the board, or a chart somewhere that compares towns? Is there any reduction for those over age 65?

Excise tax: Another big one in Mass. My 2014 Subaru Forester cost $500 this calendar year in excise tax. It goes down somewhat every year for 5 years and then it freezes. Anyone know how this compares with Maine?

Water and Sewer Tax (for those on town water & sewer): How to find out the cost in advance?

Auto registration: how often and how much in Maine?

Auto inspection: how often and how much in Maine?

Other annual taxes and fees?

Thanks for any info you can post! (esp from those who have escaped from Mass.)

[AustinB]

Originally Posted by newenglandgirl

We're going to be comparing our various taxes and fees in Mass. with those in Maine.

Income tax: I understand that Maine does not tax pensions or SS. What about income from assets (not real estate)?

Property tax: This is a big one in Mass. I know that prop tax varies from town to town. Is there a formula across the board, or a chart somewhere that compares towns? Is there any reduction for those over age 65?

Excise tax: Another big one in Mass. My 2014 Subaru Forester cost $500 this calendar year in excise tax. It goes down somewhat every year for 5 years and then it freezes. Anyone know how this compares with Maine?

Water and Sewer Tax (for those on town water & sewer): How to find out the cost in advance?

Auto registration: how often and how much in Maine?

Auto inspection: how often and how much in Maine?

Other annual taxes and fees?

Thanks for any info you can post! (esp from those who have escaped from Mass.)

Property tax varies from town to town.
Excise tax does drop each year for the first 6(?) years, then that's what it will stay at.
Water and sewer is by each town that has it.
Registration is each year.
Inspection is yearly.

[RiverBird]

Originally Posted by AustinB

Property tax varies from town to town.
Excise tax does drop each year for the first 6(?) years, then that's what it will stay at.
Water and sewer is by each town that has it.
Registration is each year.
Inspection is yearly.

Thanks. So each town determines prop tax and water/sewer, same as here. What is the cost of registration and inspection yearly?

Does anyone know what my 2014 Forester excise would be in Maine for the first year? (here it was $500 )

[AustinB]

Originally Posted by newenglandgirl

Thanks. So each town determines prop tax and water/sewer, same as here. What is the cost of registration and inspection yearly?

Does anyone know what my 2014 Forester excise would be in Maine for the first year? (here it was $500 )

Inspection 12.50
Registration 35.00
Excise is based on MSRP for the vehicle. I can't tell you, well I could, but it would definitely be a lie...

[221B]

Here is your info on the Auto Excise Tax…

https://maine.gov/revenue/forms/prop...axbrochure.pdf

[GreenGene]

Originally Posted by newenglandgirl

We're going to be comparing our various taxes and fees in Mass. with those in Maine.

Income tax: I understand that Maine does not tax pensions or SS.

No, as far as I can tell, Maine taxes pensions and Social Security benefits - see below.

Maine Revenue Services - FAQs

07. What is the Pension Benefits Income Deduction?

For tax years beginning on or after January 1, 2000 each recipient of certain pension benefits may deduct up to $6,000.00 of pension income that is included in federal adjusted gross income. For tax year 2000, the $6,000.00 cap must be reduced by all taxable and nontaxable social security or railroad retirement benefits received. Deductible pension income includes state, federal and military pension benefits as well as retirement benefits received from plans established and maintained by an employer for the benefit of its employees such as: qualified pension plans, including qualified SIMPLE plans; employee annuities; and eligible deferred compensation plans from state and local government or tax exempt organizations.

08. I receive Social Security Benefits, do I qualify for the Pension Benefits Income Deduction?

Each recipient of an eligible pension must reduce the benefits deduction by all taxable and nontaxable social security or railroad retirement benefits received. If the total social security or railroad retirement benefit is less than $6,000.00 you will qualify for a portion of the deduction. If your total benefit exceeds $6,000.00, you do not qualify for the deduction.

As a federal retiree coming from Virginia, my Maine state income taxes should be lower than my Virginia state taxes.

[blueydson]

The site Tax Freedom Day has shown that Maine taxes have actually improved comparative to other states in recent years. What I would like to know is would Mainers agree with this or is it simply too subjective without having lived in another state?

[Submariner]

Originally Posted by newenglandgirl

... Income tax: I understand that Maine does not tax pensions or SS. What about income from assets (not real estate)?

I do not pay into Income Taxes, though I am not exactly sure how different types of income are handled differently. Since Moving to Maine, I have only had pension income, rental income, and farm income.

... Property tax: This is a big one in Mass. I know that prop tax varies from town to town. Is there a formula across the board, or a chart somewhere that compares towns? Is there any reduction for those over age 65?

Most of Maine is UT. For the UTs you refer to the state website, where it lists each county's mil-rate.

Maine Revenue Services: Property Tax - Unorganized Territory - Tax Acquired Property List

I am in Penobscot count, our mil rate is 0.00865

If you live in an organized township [a minority of Maine towns are organized], then you would need to check with your town clerk.

... Excise tax: Another big one in Mass. My 2014 Subaru Forester cost $500 this calendar year in excise tax. It goes down somewhat every year for 5 years and then it freezes. Anyone know how this compares with Maine?

Year, make, model, blah, the exact MSRP of that vehicle is needed, to make the estimate.

In year 1 = .0240 mil rate
In year 2 = .0175 mil rate
In year 3 = .0135 mil rate
In year 4 = .0100 mil rate
In year 5 = .0065 mil rate
In year 6 = .0040 mil rate

I think a 2014 Subaru Forester's MSRP is around $21,995

Times 0.0240 = $527.88

In it's second year it would be $384.91
Third year = $296.93
Fourth year = $219.95
Fifth year = $142.97
Sixth year = $87.98

... Auto inspection: how often and how much in Maine?

$12.50 every year.

My truck, willy and motorcycle are each taxed $15/year. So $15 for excise and $12.50 for inspection, for each of them, every year.

[RiverBird]

Thanks, all. Forgot to ask, does Maine tax regular groceries and clothing?

[GreenGene]

Originally Posted by newenglandgirl

Thanks, all. Forgot to ask, does Maine tax regular groceries and clothing?

The general sales tax rate is 5.5% - does not apply to groceries and prescription drugs, but it does apply to clothing.

For comparison, in Virginia, the sales tax is 5.3%, but localities can tack on additional taxes. In my county, the sales tax is 6%, and there's another 2.5% on groceries. As with state income tax, we should end up paying less in sales tax when we move to Maine.