In case you ever wondered if those who work outside of MA pay taxes to MA, the answer is yes. I can help confirm this as I work in RI and file two state tax returns (RI and MA). And what is the incentive to fill two returns? If you don't, you effectively pay double taxes. Filling the two returns gets credit in MA for paying the tax in RI so the total tax bill is less (and fair).
A just released DOR report shows that 324,829 citizens who don't live in Massachusetts paid $972.6 million in state income taxes in 2010. No surprise that New Hampshire tops the list with 90,540 citizens who paid $270,655,228 on wages they earned in Massachusetts. That total accounted for nearly 28 percent of all taxes paid by out-of-staters. New Hampshire's average tax bill was $2,989.
Two other border states, Rhode Island and New York came in second and third. Some 67,203 Rhode Islanders paid $143,662,354, an average of $2,138 per taxpayer or nearly 15 percent of the out-of-state total. In New York, 24,286 residents paid $94,591,776, with an average tax bill of $3,895 and nearly 10 percent of the total.
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