NH Residents Working in Massachusetts: Cross-Border Tax Guide
By Chris Brown, Enrolled Agent
He was professional, cordial, and efficient. I'm extremely glad I found NH Tax Advisors and chose to work with them.
Living in New Hampshire and working across the border in Massachusetts is one of the most common tax situations in Southern NH. It is also one of the most commonly overpaid. Here is how it actually works.
The short version
New Hampshire does not tax earned wages. Massachusetts taxes income earned within its borders. So for an NH resident with a Massachusetts job, the state tax bill is a Massachusetts bill, and it covers the income tied to work you physically performed in Massachusetts.
You file a Massachusetts nonresident return
Your MA-source wages go on Form 1-NR/PY, the Massachusetts nonresident and part-year resident return. Massachusetts taxes that income at its flat rate (5% for 2024). Because New Hampshire has no tax on wages, there is no NH return to file for that income and no credit to reconcile between the two states.
Only your Massachusetts workdays count
This is the part that gets money back for hybrid workers. Massachusetts can tax the wages tied to days you physically worked in Massachusetts. Days you worked remotely from your home in New Hampshire are New Hampshire-source and fall outside the Massachusetts tax.
If you split your week between a Boston office and your kitchen table in Bedford, only the office days belong to Massachusetts. Keep a simple workday log. Many employers withhold Massachusetts tax on 100% of wages by default, which means a hybrid worker can be due a refund once the income is apportioned correctly.
What New Hampshire taxes
New Hampshire has no tax on wages, and its Interest and Dividends Tax was fully repealed as of January 1, 2025, so investment income is no longer taxed at the state level either. If you also run a business, New Hampshire’s Business Profits Tax and Business Enterprise Tax can still apply above certain thresholds. See the small business tax guide for that side.
Where it gets tricky
Cross-border returns turn on the details: how your days are sourced, what your W-2 withholding assumed, stock compensation that vests over a multi-state work period, and a year where you changed jobs or work locations. This is the work we do most. Read about our NH residents working in MA service, or call to talk through your specific setup.
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Frequently asked questions
Do I pay both NH and MA income tax if I live in NH and work in MA?
No. New Hampshire does not tax earned wages, so you only pay Massachusetts tax, and only on income you earned for work performed in Massachusetts. There is no double taxation on those wages.
Is my remote work from home in NH taxed by Massachusetts?
Generally no. Wages for days you physically work from New Hampshire are New Hampshire-source and not taxable by Massachusetts. Only the portion tied to days worked in Massachusetts is taxed there.