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New Hampshire Tax Burden Dramatically Less than Massachusetts. The Granite States live free or die mentality perfectly describes its minimalist taxation policy. With no income or sales tax, New Hampshires tax burden is a fraction of what it is in Massachusetts.
The State of New Hampshire does not have an income tax on an individuals reported W-2 wages.
These exemptions and deductions are prorated if some of your income is not taxed in Massachusetts. If you only work in Massachusetts and dont live there, not all income is taxable on your Massachusetts return. Generally, only the income sourced in Massachusetts is taxable in Massachusetts.
A Resident of Massachusetts is an individual who is domiciled in Massachusetts or maintains a permanent place of abode in MA and spends more than 183 days in the state. A Nonresident of Massachusetts is an individual who was not domiciled in Massachusetts but earned MA income.
If youre a nonresident with an annual Massachusetts gross income of more than either $8,000 or the prorated personal exemption, whichever is less, you must file a Massachusetts tax return.
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You are a Nonresident if you were not a resident of Massachusetts but earned Massachusetts income (e.g., from a job in Massachusetts). You must report such income by filing a Massachusetts Nonresident/Part-Year Resident Income Tax Return, Form 1-NR/PY.
A common mistake we see when we review Massachusetts nonresident tax returns is that your capital gains income, interest, and dividends should not be allocated to Massachusetts if you live in New Hampshire. The only income subject to Massachusetts tax is Massachusetts- sourced income, such as wages and rental property.
If youre a nonresident of Massachusetts, you must file a Massachusetts Income Tax Return if you received Massachusetts source income in excess of your personal exemption multiplied by the ratio of your Massachusetts source income to your total income, or your gross income was more than $8,000 whether received from

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