By Eric Berman, REALTOR® | The Eric Berman Team at Compass
 

TL;DR:

Housing is genuinely much cheaper and the lifestyle case is real — but Maine is not a low property tax state, and describing it that way sets up a budget that won't hold. Two things a Long Island buyer has no framework for. Shoreland zoning regulates development near most water bodies and streams, not just the ocean, so it affects far more properties than people expect. And private wells in Maine can carry elevated arsenic and uranium from the bedrock, which makes testing a genuine step rather than a formality.

Start With the Long Island Sale

At 300 to 400 miles this is a real move but a manageable one, and the transaction that sets the budget happens here.

Before touring anything, know what the current home nets — commission, New York State Transfer Tax at four dollars per thousand, attorney fees generally $1,500 to $3,500, preparation, and carrying costs. The full breakdown of what a Long Island sale costs covers each line.

A seller who establishes Maine residency before the Long Island closing becomes a New York nonresident for that transaction, triggering Form IT-2663 — an estimated payment at closing of 8.82 percent of net gain. A prepayment rather than an additional tax, refundable where the real figure comes in lower, but it reduces the wire.

For a long-held home, the exclusion covers $250,000 single and $500,000 filing jointly, and improvement records reduce taxable gain substantially. The full treatment of how gain is calculated covers the mechanics.

Cheaper Housing, Not Cheap Taxes

The affordability case for Maine is real on housing and overstated on taxes, and the distinction matters for a budget.

Housing costs are dramatically lower than Long Island's. That part holds across the state, including on the coast, and it's the reason most of these moves make sense.

Property taxes are a different story. Maine's effective property tax rates run relatively high by national standards. A Nassau County seller will likely pay less in absolute dollars — because Maine values are lower — but Maine is not a low property tax state, and a buyer planning around that framing will be surprised by the bill.

The homestead exemption requires application. Maine offers an exemption reducing the assessed value of a qualifying primary residence, and it isn't automatic on purchase. A new owner has to apply, and one who doesn't pays more than necessary. Ask the municipality what the application requires and when it's due.

The transfer tax is split. Maine's real estate transfer tax is divided between buyer and seller — which means a New York buyer pays a share at purchase where they'd pay nothing here, and pays again as a seller at eventual resale. Confirm current rates with a Maine attorney.

Heating is the other line worth budgeting honestly. Oil heat remains common in Maine, and winter costs on an older, poorly insulated home can be substantial. Ask for twelve months of actual bills rather than reasoning from a listing.

Shoreland Zoning Reaches Further Than You'd Think

This is the item most likely to catch a Long Island buyer, and the surprise isn't that it exists — it's what it covers.

Maine regulates development and alteration within a defined distance of most water bodies, administered through municipal ordinances under a state mandate. That includes lakes, ponds, rivers, and streams — not only ocean frontage.

A buyer looking at a wooded lot with a brook running through it may be in a regulated area without realizing it. So may a buyer on a pond, a river, or a property whose back boundary touches a stream.

What it affects: what can be built, expanded, or rebuilt; vegetation removal; and in some cases the treatment of existing nonconforming structures.

The practical questions before offering: whether any part of the property falls within a shoreland zone, what the governing municipality's ordinance permits, and whether existing structures comply or are grandfathered.

This is the third version of the same dynamic in this series — Rhode Island's coastal council and the DEC on the Port Washington peninsula work similarly. Which authority governs a property is the same question a Port Washington seller asks, with a different answer.

Test the Well

Most of Maine outside the larger towns is on private wells, and this is a genuine health-and-cost question rather than a formality.

Maine's bedrock geology produces elevated arsenic in some groundwater, and uranium and radon in water are also documented concerns in parts of the state. Levels vary substantially between properties — sometimes between neighbors — which means a general area assessment tells you little about a specific well.

Testing is the step, and it's inexpensive relative to what it addresses. Treatment systems exist where levels warrant them, and their cost is a legitimate part of a purchase calculation.

A Long Island buyer accustomed to municipal water has no reason to know any of this, and it doesn't appear in relocation content. Ask for existing test results, and test independently regardless.

Septic systems are the companion question. Most rural Maine properties are on subsurface wastewater disposal, and whether the system's design is on file with the state and matches what's installed is worth confirming — the same permit-versus-reality question Vermont raises and that Port Washington sellers face with certificates of occupancy.

Land, and What It Costs to Change

Maine sells acreage the way Long Island sells square footage, and enrolled land carries obligations.

Tree Growth reduces the valuation of qualifying forest land, substantially lowering the tax bill. Enrollment requires a management plan and continued compliance, and withdrawing land from the program triggers a penalty that can be significant.

For anyone buying acreage — which is much of what Maine offers — the questions are: is any of it enrolled, what does enrollment require going forward, and what would it cost to withdraw a portion for development later.

That last figure is invisible in a listing and can be substantial. Ask before offering.

Oil tanks deserve a mention here too. Given how common oil heat is, buried and above-ground tanks are a live question — age, condition, and whether any tank was ever abandoned in place. That's an environmental matter rather than a maintenance one, and it belongs with counsel where anything is uncertain.

The Process

Maine transactions commonly involve attorneys, and the market moves at a different pace than Long Island's — generally slower, with more room to consider a property rather than deciding in a weekend.

A buyer who wants legal review should confirm the arrangement rather than assume it, since practice varies. The fuller picture of what the attorney handles on the New York side describes what a New York seller is used to.

Coastal and inland are different markets. Southern coastal Maine carries premiums and behaves more like a competitive market; inland and northern areas are considerably cheaper and slower. Comps from one don't translate to the other.

Flood exposure applies on the coast as everywhere — zone designation, National Flood Insurance Program claim history that attaches to the address permanently, and elevation certificates. The full treatment of flood zone questions covers the federal mechanics, which are identical.

Winters are the real adjustment — longer and heavier inland than on the coast. Practical consequences: heating cost, vehicle capability, backup heat and power where outages last longer, and internet service that varies considerably by address rather than by town.

A Worked Example

Consider a composite case — a Nassau County household relocating to mid-coast Maine for remote work, selling a colonial that comped near $1,030,000 and buying a farmhouse on nine acres at roughly $470,000.

Three discoveries. The property's rear boundary touched a stream, putting part of it in a shoreland zone — which mattered because they'd planned to add a garage. Their Maine attorney flagged it before the offer rather than after.

The well tested above the level at which treatment is recommended for arsenic. A treatment system was installed as a negotiated item, and they'd never have thought to test without being told.

And part of the acreage was enrolled in Tree Growth. Favorable while they kept it enrolled; expensive if they ever wanted to clear a portion, which their attorney quantified before closing.

On the New York side they sold first. Their attorney's early title review turned up an unclosed 2010 permit, resolved in six weeks before listing.

Where to Start

Build the net-proceeds model on the Long Island home and sell first. Call the town or village building department about permits. Engage a New York real estate attorney early and talk to a CPA about IT-2663 and capital gains before setting a closing date.

On the Maine side: pull the actual property tax bill and ask what the homestead exemption application requires. Ask whether any part of the property falls within a shoreland zone and what the municipal ordinance permits. Test the well for arsenic and uranium regardless of what existing results show. Confirm the septic design is on file and matches what's installed. If there's acreage, ask about Tree Growth enrollment and withdrawal cost. Ask about oil tanks. Get twelve months of heating bills. Confirm internet at the specific address.

Sellers wanting a current read on where their Long Island home sits can start with a quiet look at present value.

The Honest Bottom Line

Maine gives a Long Island household dramatically more house and land for the money, and the lifestyle case is genuine. That part of the standard story holds.

What doesn't is the tax framing. Maine's rates are relatively high, the bill is lower mainly because values are, and the homestead exemption requires an application nobody mentions.

And two questions need asking before an offer rather than after: whether the property falls within a shoreland zone, and what's in the well. Neither appears in a listing, both are answerable in advance, and both cost real money to discover late.

For anyone working through what their Long Island home would net before any of that begins, that conversation is available whenever the timing suits.

This is general information, not legal, tax, environmental, or financial advice. Maine property tax rates, exemption requirements, transfer tax, shoreland zoning ordinances, well water standards, and Tree Growth obligations vary by municipality and change over time. Confirm current specifics with a Maine attorney, the relevant municipality, and qualified testing professionals, and confirm New York specifics with a licensed New York real estate attorney and a CPA.

FAQs

Are property taxes lower in Maine than on Long Island?

In absolute dollars usually yes, and Maine is not a low property tax state. Its effective rates run relatively high by national standards — the bill is smaller than Nassau County's mainly because Maine values are lower, which is a different claim from low taxes. There's also a homestead exemption that reduces assessed value on a qualifying primary residence, and it isn't automatic: a new owner has to apply, and one who doesn't pays more than necessary. Ask the municipality what the application requires.

What is shoreland zoning in Maine?

State-mandated regulation of development and alteration within a defined distance of most water bodies, administered through municipal ordinances. The surprise for a Long Island buyer isn't that it exists but what it covers — lakes, ponds, rivers, and streams, not only ocean frontage. A wooded lot with a brook at its boundary may be partly within a shoreland zone. It affects what can be built, expanded, or rebuilt, and vegetation removal. Ask before offering whether any part of a property falls within one.

Should I test the well water in Maine?

Yes, and it's a genuine step rather than a formality. Maine's bedrock geology produces elevated arsenic in some groundwater, with uranium and radon in water also documented concerns in parts of the state. Levels vary substantially between properties — sometimes between neighbors — so a general area assessment tells you little about a specific well. Testing is inexpensive relative to what it addresses, treatment systems exist where levels warrant them, and their cost belongs in the purchase calculation.

What is Maine's Tree Growth program?

A program that reduces the valuation of qualifying forest land, substantially lowering the tax bill, in exchange for a management plan and continued compliance. Withdrawing land from the program triggers a penalty that can be significant. For anyone buying acreage — much of what Maine offers — the questions are whether any land is enrolled, what enrollment requires going forward, and what withdrawal would cost if part of the parcel were later developed. That figure is invisible in a listing.

Who pays transfer tax in Maine?

Both parties — Maine's real estate transfer tax is split between buyer and seller. That means a New York buyer pays a share at purchase, where they'd pay none on a residential purchase here, and pays again as a seller at eventual resale. It's a closing cost that won't have been budgeted. Confirm current rates with a Maine attorney, since rates change and the split arrangement differs from most destinations a Long Island seller considers.

By Eric Berman, REALTOR® | The Eric Berman Team at Compass

Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com