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If you live in New Hampshire and work in Massachusetts, do you have to pay state income tax?


We may be relocating and I can't seem to find this answer anywhere on the web. Thanks for your help!

Most certainly. You'll have to file a non-resident return for Massachusetts and be taxed on your MA income. And your employer should be taking Mass withholding out of the paycheck to cover the taxes. New Hampshire does not have a state income tax, but does have an interest and dividends tax, so there won't be any credit in NH for taxes paid to MA. Source(s): CPA in MA
Yes, you have to pay taxes to the state in which you earn the income.

From MA dept of Rev:

"Massachusetts Source Income That Is Included in Income

The term "Massachusetts source income" is used to describe the types of income which are taxable to nonresidents.

For tax years beginning on or after January 1, 2003, a nonresident is subject to tax on items of income derived from or effectively connected with:

* any trade or business, including any employment carried on by the taxpayer in Massachusetts, regardless of the year in which that income is actually received by the taxpayer and regardless of the taxpayer's residence or domicile in the year it is received;
* the participation in any lottery or wagering transaction in Massachusetts; or
* the ownership of (or interest in) real or tangible personal property located in Massachusetts."

You'll file a nonresident tax return.
MA Nonresident income tax info - http://www.mass.gov/?pageid=dorterminal&...
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