Live in VT, Work in MA, Taxed in Two States? (home, income)

[arel]

Question: If I live in Vermont and work in Massachusetts, would I have to pay Vermont income tax, Massachusetts income tax or both?

A New Hampshire job is one thing, since there is no income tax there. But both Vermont and Massachusetts, I think, have income taxes.

Is there some agreement between Vermont and Massachusetts so that someone who worked in one state and lived in the other only paid state income tax to one state? Or so that the person paid a fraction of each state's tax, so that there was not a doubled tax burden? I can't imagine being expected to pay full income tax to two states.

[pondhopper]

Generally you pay where you reside though the State where you work may insist on witholdings and force you to file a return to reclaim the tax which then you'll get (usually after you pay out already to your state of residence).

[smarty]

Yes. You have to pay MA income tax if you live in VT

Permanent address can affect taxes. If your home state is 7% and work in MA 5%, you pay 5% to MA and 2% to your home state. Since VT is 0%, you pay 5% to MA.

[jad77]

we have the same issue living in MA and hubby working in RI. We have to file taxes in both states and we get taxed from both in the paycheck.

[arel]

Thanks for your replies.

But I do not want to finance two states, so I guess I'd have to do my best to find work in the state I live in.