MA income tax on NH residents

[Fly320s]

Can anyone tell me if the state of Massachusetts applies state income tax (or any other tax) to NH residents that work in MA?

I'm going to move to NH but work in Boston.  NH does not have income tax, but MA does.  I've heard rumors that employers in MA must withhold MA state tax even if the employee lives in NH or another state.

So, anyone have first hand experience or a definitive answer?

Thanks.

[Preacherman]

AFAIK (and IANAL) income is taxed in and by the state in which it is earned.

[Azrael256]

income is taxed in and by the state in which it is earned

My experience is the same.  I am a Texas resident, but I had a job while I was in college in Oklahoma.  I paid OK income tax on all income earned in the state of Oklahoma, but only federal income tax on income earned in Texas (summer job).  Witholding in Texas was only federal, while witholding in Oklahoma was both state and federal.

[Guest]

Depends. I worked in Ohio for years and lived in Michigan. The two states have a reciprocal agreement but my employer wouldn't withdraw Michigan tax. They'd withdraw Ohio tax and I could apply for a refund at the end of the year.

[garrettwc]

I live in Indiana and work in Kentucky. They have a reciprocal agreement as well. My employer holds Indiana tax, not Kentucky, but they do take out city taxes for the city I work in.

[jebaker]

Yup, you will definately pay Mass income tax ( I think it is 5%). I live in NH and have worked down in Mass in the past. Last year was my first full year working only in NH, it felt great to chuck out the MA tax forms.

Jeff

[Leatherneck]

I believe that's where the sobriquet "Taxachusetts" comes from...

TC

[Devonai]

I am currently working for a Massachusetts-based company, and even though I did not set foot inside MA last year (the job site was in NH), I still had to pay MA income tax.

BTW, in 2004 the people of MA voted to roll back the 5.75% income tax to 5% over three years, but the legislature has pulled some sort of voodoo to keep the tax where it is indefinitely.