Compare taxes and see how much you save moving from Massachusetts to New Hampshire
New Hampshire has zero state income tax while Massachusetts charges 5% (9% over $1.08M). But here's the catch: if you live in New Hampshire and commute to work in Massachusetts, you still pay Massachusetts income tax on wages earned in MA. There is NO reciprocity agreement. A $100,000 earner living in NH but working in Boston pays $5,000 to Massachusetts anyway. And NH makes up for no income tax with the 2nd highest property tax in America (2.05% average vs MA's 1.17%). On a $500K home, that's $10,250/year in NH vs $5,850 in MA. The tax advantage is real for remote workers and retirees—but nearly disappears for MA commuters once you factor in property tax.
Flat + Millionaire Tax
5% flat rate, plus 4% surtax over $1,083,150
No Income Tax
No tax on wages, interest, or dividends (as of 2025)
At $100,000 income:
That is $417/month back in your pocket!
| Income | MA Tax | NH Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,500 | $0 | $2,500 | $25,000 |
| $75,000 | $3,750 | $0 | $3,750 | $37,500 |
| $100,000 | $5,000 | $0 | $5,000 | $50,000 |
| $150,000 | $7,500 | $0 | $7,500 | $75,000 |
| $250,000 | $12,500 | $0 | $12,500 | $125,000 |
| $1,500,000 | $91,686 | $0 | $91,686 | $916,860 |
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Moving from Massachusetts to New Hampshire? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →No. This is the biggest misconception. Massachusetts taxes all income earned within Massachusetts, regardless of where you live. If you live in NH but commute to a Boston office, you pay 5% MA tax on those wages. There is NO reciprocity agreement between MA and NH. The only way to avoid MA tax is to work remotely from NH for a NH-based job, or work for an out-of-state employer. During the pandemic, MA tried to tax remote workers living in NH, but NH successfully sued and won - work physically performed in NH is NOT taxable by MA.
Less than you think. If you work in MA, you pay MA income tax anyway. The real comparison becomes property tax. On a $500K home: NH property tax = $10,250/year (2.05%), MA property tax = $5,850/year (1.17%). You'd pay $4,400 MORE in property tax in NH. The savings only materialize if you (1) work remotely from NH, (2) are retired, or (3) own a business based in NH. Commuters get the worst of both: MA income tax + NH property tax.
Starting January 2023, Massachusetts imposes a 4% surtax on annual income over $1,083,150 (adjusted for inflation). Combined with the 5% base rate, high earners pay 9% on income above this threshold. A $2 million earner pays roughly $91,686 in state tax. The surtax funds transportation and education. High earners (especially with capital gains events) often establish NH residency before realizing gains to avoid this 9% hit.
For income: yes. NH has no tax on wages, salaries, capital gains, or (as of 2025) interest and dividends. The Dividends & Interest Tax was 3% but fully phased out by 2027. However, NH has the 2nd highest property tax in America at 2.05% average (only New Jersey is higher). On a $500K home, that's $10,250/year. NH also has no sales tax (0%). So it's 'income tax free' but definitely not 'tax free.'
It depends on your situation. Neither state taxes Social Security. NH has no income tax on retirement account withdrawals (401k, IRA, pensions), but 2.05% property tax. MA taxes retirement income at 5%, but property tax is much lower (1.17%). If you have high retirement income ($100K+) and a modest home, NH wins. If you have a large home ($600K+) but modest income, MA may be cheaper. Retirees should calculate both scenarios.
New Hampshire: 2.05% average (2nd highest in US, only behind NJ). Massachusetts: 1.17% average. On a $500K home: NH = $10,250/year, MA = $5,850/year. That's $4,400 more per year in NH. NH has no income tax, so property tax is the primary revenue source for schools, roads, etc. MA spreads the burden across income tax (5%) and moderate property tax.
Yes. You file as a Massachusetts non-resident (Form 1-NR) reporting only MA-sourced income, and pay 5% MA tax on wages earned in MA. New Hampshire has no income tax, so there's no NH return to file. You do NOT get a credit or offset anywhere - you simply pay MA tax on MA wages. This is why the 'move to NH for lower taxes' strategy backfires for Boston commuters.
If you're a NH resident working remotely from your NH home for a MA-based employer, the income is NOT taxable by Massachusetts (as of the 2020 NH v. MA Supreme Court case). MA tried to tax remote workers during COVID-19, but NH sued and won. Work physically performed in NH is taxed at 0%. However, if you go into the MA office even 1 day/week, that portion IS taxable by MA. Track your location carefully.
Only if: (1) you work remotely from NH, (2) you're retired with substantial income, or (3) you own a business based in NH. If you commute to Boston, you pay MA income tax anyway and face higher NH property tax - you lose on both ends. Remote workers and retirees save significantly. Boston commuters save almost nothing (and may pay more).
No. Massachusetts taxes based on where the work is performed, not where the company is incorporated. If you live in NH but perform services in MA (even as a 1099 contractor or through your own NH LLC), the income is MA-sourced and taxable by MA. The corporate structure doesn't matter - physical location of work matters.