- If you are a New Hampshire resident, you are generally required to pay Massachusetts income tax on any income you earn in Massachusetts.
- However, there are some exceptions to this rule.
For example, you are not required to pay Massachusetts income tax on:
- Wages earned in New Hampshire (even if your employer is located in Massachusetts)
- Interest and dividends from Massachusetts sources
- Rental income from Massachusetts property if you also own the property
You may also be eligible for a tax credit if you live in New Hampshire and pay income tax to Massachusetts.
- The credit is based on the amount of tax you paid to Massachusetts, up to a maximum of $1,500.
To claim the credit, you must file a Massachusetts income tax return and attach Form C-2, Credit for Taxes Paid to Other States.
If you are unsure whether you have to pay Massachusetts income tax, you should consult with a tax advisor.
