If you are painting with a sheen paint (on the walls), you may want to carpet first, since "touch up" may require painting whole walls.  If you are doing two coats, paint the first coat prior to carpet, this will mitigate the chance of potential paint accidents on the new carpet by 50%. 
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Touching up baseboard
Any marks or scuffs can be touched up after the carpet is down.  Vacuum the new carpet at the baseboard to remove loose carpet fibers, tape off the carpet as needed  (see How to Paint Baseboard ), and touch up the baseboard with a brush. 

Remove the old carpet first either way and paint the baseboard
It is not likely that the new carpet height will be the same as the old.  You definitely don’t want to paint the room, then remove and replace the carpet - only to find that the new carpet is lower than the old.























Paint ridges and old carpet fibers
Remove these by first scraping , then sanding.  Old ridges above the height of the new carpet will make the newly renovated room look - old and raggedy.  Be careful of the carpet tack strips on the carpet-less floor, they will cut your hands during the sanding process if you are not careful to avoid them.

Important Note:
If you house was built prior to 1978 (the year lead paint was banned)  don’t scrape, sand or otherwise disturb the underlying paint without first becoming familiar with lead safe work practices and safety protocols.   See EPA Lead Page for more information on how to protect yourself and your family from lead hazards resulting from painting and renovation practices.

See Related:  How to Paint Baseboard (and keep paint off the carpet).

Removing the carpet prior to painting allows you to  paint all the way down to the floor.  You may need to address a paint ridge left on the baseboard from prior paintings when the carpet was not replaced.

Even if you will be painting the walls after carpet installation, you should still prep (see below paint ridges) and paint the baseboard prior to carpet installation regardless. Baseboard touches up well with any sheen paint because of the location and the small size of the baseboard.  So, go ahead and paint it first, then touch it up later if need be.
This is the Yin-Yang of remodeling a room. If you paint first, you risk wall damage (scuffing) when the carpet is installed.  If you carpet first, you risk getting paint on the new carpet.

Consider the paint.
If you are painting with flat paint, which touches us easily and invisibly, then you may want to paint first.  This is the sequence used in new home construction.  Use the same paint   See How to Touch up Paint
Painting and Carpet

Is it better to paint before replacing the carpet
or
Should you carpet first, then paint?
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