Live in Massachusetts, Work in New York: Which State Taxes Your Paycheck?
Answer
New York withholds and Massachusetts credits. Without an agreement between them, both states are entitled to tax income earned in New York by a Massachusetts resident. The mechanism that stops you paying twice is the credit on the Massachusetts resident return, which is why the New York return has to be completed first.
Last verified
Without an agreement between Massachusetts and New York, the overlap is handled after the fact rather than prevented. That is why the filing order matters: the New York figure is an input to the Massachusetts return, so completing Massachusetts first means doing it twice.
A Massachusetts resident taxed by another state on the same income claims the credit for taxes paid to other states on Schedule OJC. The credit is capped at the Massachusetts tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
New York also has a layer below the state one, and it is the layer that survives every agreement: New York City levies a resident income tax, and Yonkers levies both a resident tax and a small nonresident earnings tax. New York City has not taxed nonresident commuters since the commuter tax was repealed in 1999 — a New Jersey or Connecticut resident working in Manhattan owes New York State but not New York City.
What you file
- 1Nonresident return · New YorkForm IT-203
File the New York nonresident return FIRST — you need the New York tax figure before you can complete Massachusetts.
- 2Resident return · MassachusettsSchedule OJC
File a Massachusetts resident return reporting all income, then claim the credit for tax paid to New York. The credit is capped at what Massachusetts would have charged on that same income, so if New York taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Massachusetts | New York | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | No | Yes — general rule |
| Nonresident return | Form 1-NR/PY | Form IT-203 |
| Credit for other-state tax | Schedule OJC | Form IT-112-R |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | Yes |
| Revenue department | Massachusetts Department of Revenue | New York State Department of Taxation and Finance |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in New York and working in Massachusetts 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: Massachusetts → New YorkConvenience-of-the-employer rule — both states tax you
- 1099 contractor: Massachusetts → New YorkHome state, plus the client state if you work there
- Moved mid-year: Massachusetts → New YorkTwo part-year returns
Other Massachusetts pairs
Questions people actually ask
I live in Massachusetts and work in New York. Which state takes the tax out of my paycheck?
New York withholds and Massachusetts credits. Without an agreement between them, both states are entitled to tax income earned in New York by a Massachusetts resident. The mechanism that stops you paying twice is the credit on the Massachusetts resident return, which is why the New York return has to be completed first.
Which state should my employer be withholding for?
New York. The wages are sourced to New York, so New York withholding is correct and there is no Massachusetts 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. Massachusetts gives residents a credit for tax paid to New York on the same income, claimed on Schedule OJC. The credit is capped at the Massachusetts tax on that income, so if New York taxes it more heavily the excess is not refunded by either state.
How current is this?
The Massachusetts and New York rules on this page were last checked against Massachusetts Department of Revenue and New York State Department of Taxation and Finance 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
- New York State Department of Taxation and Finance — individual income taxaccessed 2026-08-07