Comparison of Southern Maine vs. NH Seacoast Area

[Submariner]

According to the 2008 Maine 1040 form.

http://www.maine.gov/revenue/forms/1...40ME_Short.pdf

http://www.maine.gov/revenue/forms/1...Short_Book.pdf

If you file 'Married joint' then your standard deduction is: $9,100

Which means that the first $9,100 income that you earned in 2008 was tax-free.

It was not taxed.

You paid no taxes on it.

Again according to the 2008 Maine 1040, the first $9,100 income that you earned in 2008 was tax free. It was not taxed, and you will not be paying taxes on it.

Don't shoot me. I am not a heretic, I know that it sounds like I am pointing out how little taxes Mainers pay, but I am merely quoting the Maine 1040

http://www.maine.gov/revenue/forms/1...40ME_Short.pdf

http://www.maine.gov/revenue/forms/1...Short_Book.pdf

If you are elderly and/or blind then you standard deduction may be greater.



As an entirely separate discussion. Maine has an 'Exemption' too.

According to:
http://www.maine.gov/revenue/forms/1...40ME_Short.pdf

http://www.maine.gov/revenue/forms/1...Short_Book.pdf

Line 17 Exemption is $2,850 per person. For a couple their exemption would be $5,700.

So via their 'exemption' a couple would be exempted on $5,700.



Added together [which is what the 1040 does] $9,100 + $5,700 = $14,800

Which means that the first $14,800 that a couple earned in 2008 was tax free.

They paid no Maine income taxes on it.

[steveusaf]

Originally Posted by forest beekeeper

According to the 2008 Maine 1040 form.

http://www.maine.gov/revenue/forms/1...40ME_Short.pdf

http://www.maine.gov/revenue/forms/1...Short_Book.pdf

If you file 'Married joint' then your standard deduction is: $9,100

Which means that the first $9,100 income that you earned in 2008 was tax-free.

It was not taxed.

You paid no taxes on it.

Again according to the 2008 Maine 1040, the first $9,100 income that you earned in 2008 was tax free. It was not taxed, and you will not be paying taxes on it.

Don't shoot me. I am not a heretic, I know that it sounds like I am pointing out how little taxes Mainers pay, but I am merely quoting the Maine 1040

http://www.maine.gov/revenue/forms/1...40ME_Short.pdf

http://www.maine.gov/revenue/forms/1...Short_Book.pdf

If you are elderly and/or blind then you standard deduction may be greater.



As an entirely separate discussion. Maine has an 'Exemption' too.

According to:
http://www.maine.gov/revenue/forms/1...40ME_Short.pdf

http://www.maine.gov/revenue/forms/1...Short_Book.pdf

Line 17 Exemption is $2,850 per person. For a couple their exemption would be $5,700.

So via their 'exemption' a couple would be exempted on $5,700.



Added together [which is what the 1040 does] $9,100 + $5,700 = $14,800

Which means that the first $14,800 that a couple earned in 2008 was tax free.

They paid no Maine income taxes on it.

Forest,
I believe I've read some of your posts saying you don't make enough to pay any income tax in ME? Your military retirement itself should be worth at least $15K, plus whatever else you or your spouse make. I don't know where I got the $38K from (another thread on this topic in the past, I'm sure). Here's the tax brackets from the Tax Foundation:

Maine's Individual Income Tax System
Maine's personal income tax system consists of four brackets with top rate of 8.5%, kicking in at an income level of $18,950.

18,900 aint a lot of $ for the top rate to kick in. I bet a lot of people in Maine are paying 8.5% of their income above that amount. As I've figured, 8.5% of a married couple's $110K adds up quickly. If I was paying $8K in property taxes in NH, it might start to become worthwhile to consider Maine if the taxes were about 6K less.

I guess ME is good if you're a retiree in a low property tax rate area, since the lower property taxes make up for any income tax you might have to pay. As we've surmised, southern Maine is not that area. All I know is that for the area I want to retire in, I can see no advantage to living on the Maine side of the border. Too bad - I really like the rural feel of the Berwicks and Lebanon, but not enough to pay $6K per year for the privilege.

As for a previous poster's comment about healthcare costs, that's amazing that it would be about double of NHs. I wonder what the difference is? More uninsured?

[Submariner]

Originally Posted by steveusaf

Forest,
I believe I've read some of your posts saying you don't make enough to pay any income tax in ME? Your military retirement itself should be worth at least $15K, plus whatever else you or your spouse make.

I have my pension income, my Dw works part time, and we have income from our investment portfolio. Our portfolio also provides a large amount of tax sheltering, which lowers our AGI. So that our AGI is not high enough to pay Federal or state income taxes.

We feel very fortunate to have found Maine, with it's low land prices and cost of living.

[steveusaf]

Originally Posted by forest beekeeper

I have my pension income, my Dw works part time, and we have income from our investment portfolio. Our portfolio also provides a large amount of tax sheltering, which lowers our AGI. So that our AGI is not high enough to pay Federal or state income taxes.

We feel very fortunate to have found Maine, with it's low land prices and cost of living.

That's a good deal, especially the tax sheltering of the investment income. I bet that makes quite a difference. Looks like you've got a good deal going on up there and are enjoying your hard earned retirement. Not sure I could have done 20+ yrs in the Navy with a good deal of that time at sea. I grew up next to the Portsmouth Naval Shipyard and had great respect for those submariners that spent so much time out to sea. Hats off to you.