Tax burden in NH vs. MA (Manchester, Nashua: sales, houses, preschool)

[cali2east]

Didn't know if this was the best place to post this, but I was wondering about how people feel about tax burden in one state vs the other. I'm taking a field-based position and will be relocating to the Northeast. Outside of my home, my business will primarily be in Boston (2-3X/wk). If we were to settle in NH, I'd only have to pay NH property taxes - is that right? I've heard of people living in NH and working in Boston and so they are taxed by both states. I can't imagine a situation where MA would tax us since my primary residence would be NH and corporate headquarters is in Chicago. Aside from contacting an accountant, just wanted to see if anyone knew anything about this. We have a large family, so we're looking to settle into a nice, family-friendly town (w/a vibrant town center), houses that are in the $350-$400K range for a 4-bdrm w/plenty of backyard space. I know this is a tall order in a Boston suburb, which is why we're thinking to look in NH. Does anyone have any suggestions for towns that is convenient to commuter rail into Boston? Thanks so much!

[NH2NCMom]

Originally Posted by cali2east

Didn't know if this was the best place to post this, but I was wondering about how people feel about tax burden in one state vs the other. I'm taking a field-based position and will be relocating to the Northeast. Outside of my home, my business will primarily be in Boston (2-3X/wk). If we were to settle in NH, I'd only have to pay NH property taxes - is that right? I've heard of people living in NH and working in Boston and so they are taxed by both states. I can't imagine a situation where MA would tax us since my primary residence would be NH and corporate headquarters is in Chicago. Aside from contacting an accountant, just wanted to see if anyone knew anything about this. We have a large family, so we're looking to settle into a nice, family-friendly town (w/a vibrant town center), houses that are in the $350-$400K range for a 4-bdrm w/plenty of backyard space. I know this is a tall order in a Boston suburb, which is why we're thinking to look in NH. Does anyone have any suggestions for towns that is convenient to commuter rail into Boston? Thanks so much!

If you work in MA and live in NH yes you WILL be charged for an income tax just as if you'd live in MA. Trust me the battle lines have been crossed many times and it is an ongoing fight for the NH residents (Maine ALSO charges for those in NH working in ME). There are many towns in the Southern parts of NH that would fit your criteria - Salem, Pembroke, Hampstead, all the way from Nashua to Portsmouth / Seacoast area (I believe anyways).

But to sum it up - if you work in MA expect to pay state income tax no matter where you live - just NOT property tax to MA if you live in NH, you'll pay NH property tax. (No sales or income tax in NH)

[Valerie C]

Cali2east, welcome to the forum I strongly suggest that you speak with an accountant who is familiar with the tax burden of both states. Corporate headquarters being in IL may make a difference, but I'm not qualified to say. for sure.

Our situation is that we live in NH and pay NH property taxes (no income or sales tax in NH at this time) my spouse works in MA, corporate HQ in Ohio. He pays MA income taxes, and is currently on a quest with the state to find out who his elected representative is

There is no commuter rail option in New Hampshire--if this is something that is important to you, I would suggest considering towns that are an easy commute over the border to access train stations. Your best options would be to access the Haverhill line (NH towns of Plaistow, Atkinson, Hampstead, etc) or the Lowell line (NH towns of Merrimack, Hollis, Nashua, etc). Both of these lines would bring you into Boston's North Station: here's the link for "The T": MBTA.com > Commuter Rail Maps and Schedules

If you're looking to get into South Station, Concord Coach has commuter bus runs from Concord, Manchester and Londonderry. Hope this helps!

[cali2east]

Thanks for the info! As a field-based professional, I can't believe I'll be paying taxes in all states that I'll be doing business in (MA, ME, NH, VT, RI, CT), but I could be wrong. I had a field-based position covering the mountain states (CO, UT, MT, WY) where my primary business was in CO and UT and I only paid state taxes to the state where I lived (CO). Anybody know more about this?

[bostonnative]

The commuter train now goes into scituate MA (south shore).....I think Marshfield MA . Pembroke MA may give you a decent home for that price.......or even scituate in this down market......Norwell/cohasset/Hingham are probably too pricey....

As far as the tax burden, we just changed states (MA to NH ) and it seems they get you one way or another.....and if you work in one and live in another, they get you a bit more..........

[debbiej63]

If your headquarters is in Chicago and you are being paid by the corporate office, then I think you have to pay IL income tax. Just because to travel to each of the states in your territory, I don't think you have to pay income tax there because your company is not there. Those states are not paying you directly. They pay your company and then your company pays you... out of IL. If I were you, I would pay a tax advisor to be sure.

For the money you want to spend for a house, you can easily find something in southern NH with 4 bedrooms and several acres. The closer you get to Boston, the less your money will buy.

[Sporin]

Generally you pay taxes in the state you LIVE in, and the state you WORK in (or the state your paycheck comes from if you work in the field.)

Talk to an accountant familiar with the area to be sure.

[NXC9900]

My father worked a field-based position and would travel all over the east coast for his job. He was taxed in the state in which his job was based. He was an auditor but had a sorta home base... so he paid NYS taxes but worked in NY, NJ, CT, NH, PA, MD, VA... so i would guess u'd be paying either IL or MA taxes... your company would probably know the answer for you.

[rmcewan]

Gosh, this question gets asked so often I'm surprised the replies are still so foggy.

If you have a PLACE OF BUSINESS in MA, you pay MA taxes in proportioned for the number of days you work in Mass.

If you are a sales person based out of a home-office or sales office in NH, or are a visiting technician going to many different customer locations in Mass, I really don't think you'll be liable, unless 100% of your customers are in Mass or your sales/service region is SPECIFICALLY Mass/Boston (e.g. your title is Senior Boston Field Rep).

If you have a sales or tech office in Mass (e.g a PLACE OF BUSINESS) that you base out of for the days you are in Mass, then you will pay tax proportioned for those days you work out of that office.

Note also that IF you pay MA taxes, then your tax rate is based on TOTAL household income, even if some of that income is earned in NH by your spouse (!!!).

Your tax professional will help you with the definition of place of business.

[cali2east]

Thank you all for your informative replies! New New Hampshirite was right (according to my company). I'll only have to pay taxes in the state I live in and that's it. No tax burden from corporate headquarters state. Knowing this, do you have suggestions of some good, family-friendly towns with really good schools not too far a drive from the boston commuter rails? we would like to stay and settle for a while as we have 3 young children (oldest will be starting preschool this year). My husband is a stay-at-home dad so a good downtown or town square would be nice so he'd have somewhere to take the kids when they have cabin fever. And, of course, reasonable property tax would be ideal, but I understand high property tax and good schools pretty much go hand-in-hand. Any suggestions would be great as we're doing a home-finding trip at the end of this month. Thanks!