Live in Massachusetts, Work Remotely for a California Employer: Who Taxes You?
Answer
Massachusetts gets all of it. Because California does not tax wage income, no California withholding exists and no California return is required — but Massachusetts taxes residents on worldwide income, so every dollar earned in California still belongs on your Massachusetts resident return.
Last verified
Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. Massachusetts reaches all of a resident's income, and California adds nothing on top.
What you file
- 1Resident return · Massachusetts
File a Massachusetts resident return reporting all of your income.
The two states, side by side
| Massachusetts | California | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form 1-NR/PY | Form 540NR |
| Credit for other-state tax | Schedule OJC | Schedule S |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Massachusetts Department of Revenue | California Franchise Tax Board |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in California and working in Massachusetts gives:Home state only.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: Massachusetts → CaliforniaBoth states — credit offsets the double tax
- 1099 contractor: Massachusetts → CaliforniaHome state, plus the client state if you work there
- Moved mid-year: Massachusetts → CaliforniaTwo part-year returns
Other Massachusetts pairs
Questions people actually ask
I live in Massachusetts and work remotely for a California employer. Which state do I pay?
Massachusetts gets all of it. Because California does not tax wage income, no California withholding exists and no California return is required — but Massachusetts taxes residents on worldwide income, so every dollar earned in California still belongs on your Massachusetts resident return.
Which state should my employer be withholding for?
Massachusetts. Your employer should withhold Massachusetts tax rather than California tax on these wages. If a California line is showing on your pay stub, raise it with payroll now rather than at filing time.
Does my California employer's location alone create a California tax obligation?
No. California sources wages to the place where the work is physically performed, and it does not apply a convenience-of-the-employer rule that would override that. Days you actually spend working inside California are a different matter — those are California-source income and can require a nonresident return.
How current is this?
The Massachusetts and California rules on this page were last checked against Massachusetts Department of Revenue and California Franchise Tax Board on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Massachusetts Department of Revenue — individual income taxaccessed 2026-08-07
- California Franchise Tax Board — individual income taxaccessed 2026-08-07