Live in Georgia, Work in Massachusetts: Which State Taxes Your Paycheck?
Answer
Both states tax the same wages, and a credit undoes the overlap. Massachusetts withholds as your work state and you file a Massachusetts nonresident return; Georgia taxes residents on all income, so you also file at home and claim the credit for tax paid to Massachusetts. File Massachusetts first.
Last verified
Without an agreement between Georgia and Massachusetts, the overlap is handled after the fact rather than prevented. That is why the filing order matters: the Massachusetts figure is an input to the Georgia return, so completing Georgia first means doing it twice.
A Georgia resident taxed by another state on the same income claims the credit for taxes paid to other states on Form 500 Schedule 2. The credit is capped at the Georgia tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
What you file
- 1Nonresident return · MassachusettsForm 1-NR/PY
File the Massachusetts nonresident return FIRST — you need the Massachusetts tax figure before you can complete Georgia.
- 2Resident return · GeorgiaForm 500 Schedule 2
File a Georgia resident return reporting all income, then claim the credit for tax paid to Massachusetts. The credit is capped at what Georgia would have charged on that same income, so if Massachusetts taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Georgia | Massachusetts | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — flat |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form 500 with Schedule 3 | Form 1-NR/PY |
| Credit for other-state tax | Form 500 Schedule 2 | Schedule OJC |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Georgia Department of Revenue | Massachusetts Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Massachusetts and working in Georgia gives:Both states — credit offsets the double tax.
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.
- Remote worker: Georgia → MassachusettsHome state only
- 1099 contractor: Georgia → MassachusettsHome state, plus the client state if you work there
- Moved mid-year: Georgia → MassachusettsTwo part-year returns
Other Georgia pairs
Questions people actually ask
I live in Georgia and work in Massachusetts. Which state takes the tax out of my paycheck?
Both states tax the same wages, and a credit undoes the overlap. Massachusetts withholds as your work state and you file a Massachusetts nonresident return; Georgia taxes residents on all income, so you also file at home and claim the credit for tax paid to Massachusetts. File Massachusetts first.
Which state should my employer be withholding for?
Massachusetts. The wages are sourced to Massachusetts, so Massachusetts withholding is correct and there is no Georgia withholding to set up.
Will I end up paying tax twice on the same income?
Not twice over, but you will pay the higher of the two rates. Georgia gives residents a credit for tax paid to Massachusetts on the same income, claimed on Form 500 Schedule 2. The credit is capped at the Georgia tax on that income, so if Massachusetts taxes it more heavily the excess is not refunded by either state.
How current is this?
The Georgia and Massachusetts rules on this page were last checked against Georgia Department of Revenue and Massachusetts Department of Revenue 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.
- Georgia Department of Revenue — individual income taxaccessed 2026-08-07
- Massachusetts Department of Revenue — individual income taxaccessed 2026-08-07