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Lots of people work in Massachusetts because the pay rate is much higher than it is in New Hampshire. New Hampshire has lower taxes on property etc. and no State Income Tax, Massachusetts has an Income Tax and higher property taxes. Thus - people live in New Hampshire and work in Massachusetts. They pay no income tax because they live in New Hampshire and only work in Massachusetts.

13 years ago. Rating: 1
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If you commute into another state to work, you may have to file a resident tax return in your home state and a nonresident tax return in your work state. On your resident tax return you would include all of your income, even the income you made in your work state. This is because most states tax a resident’s income from all sources, even those from out of state. On your nonresident state tax return in your work state, you would only include the wages you made in that state. In most states, you’ll be able to take a tax credit on your resident tax return for the taxes you paid to your work state.

13 years ago. Rating: 0
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