Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
If you live in Maine, you will owe income tax there on the income you earn in New Hampshire
To avoid Maine tax, you would have to move from there
To avail of NH income tax rates I must live there then correct?
Why would you have to pay Maine income tax rates for income earned outside the state?
Because Maine taxes your worldwide incme
If New Hampshire had tax, you would owe tax to both NH and ME
But Maine would give you credit for NH tax, but you'd still have both taxes to do
Oh sorry to clarify then I would file in Maine but NH rates would be applied at 0%?
You owe tax on all the income you earn in Maine at the Maine income tax rates
I thought you said that but what do you mean they would 'give me credit' for NH tax exactly?
I'm sorry that I confused you. I was making the point that IF NH DID have income tax, (which they don't but say they did) then you would pay income tax to both NH and ME
Righto got it. I see NH is in the 10 lowest overall tax bracket and Maine is in the 10 highest overall. Would you say that is correct based on your experience? I would rather live in maine (cheaper housing for sure!) but am worried about that statistic. I see NH also has some odd laws regarding car insurance and some sort of tax on cars unique to them? So wondering if it balances at all? I am trying to make Maine a valid choice compared to NH next door with no sales or income tax.
I couldn't assess which is the best state. All I can confirm is that Maine has higher taxes and lower housing costs. I also don't know anything about the laws surrounding car insurance