Post Content

DOR has just posted on its website a report on the amount of MA personal income tax paid and the number of taxpayers who paid it from across the 50 states.

Topping the list, not surprisingly, is New Hampshire, where 88,061 Granite State residents who work in Massachusetts paid the Commonwealth $256,366,987 in tax year 2009. The average tax bill was $2,911. The total amount paid accounted for nearly 30 percent of the income tax paid from residents who live outside Massachusetts.

Rhode Island was a close second, with 64,880 residents paying $136,073,542, an average of $2,097 per taxpayer, or nearly 16 percent of the out-of-state total.

Connecticut was third, with 26,973 residents paying $71,359,862, an average of $2,646 and about 8 percent of the total.

New York, another border state, was fourth, with 22,089 residents paying $66,578,882, an average of $3,014 and just under 8 percent of the total.

Five and sixth were two states at the corners of the map, Florida and California. Some 14,345 Florida residents paid $78,856,556, an average of $5,497 or 9 percent of the total.

In California, 12,846 residents paid $42,258,602, an average of $3,290 and nearly 5 percent of the total.

Rounding out the top 10 were Maine, New Jersey and Pennsylvania, each with between 2 percent and 3 percent of the total paid to MA by non-residents.

The revenue collected from 308,449 non-residents in 2009 was a very substantial $869,977,659 for an average of $2,820 per taxpayer. That was nearly 10 percent of the total income tax collection paid by slightly less than 10 percent of all tax filers.

At the bottom of the list, in descending order were Mississippi, Nebraska, Arkansas, Montana, West Virginia, Alaska, Idaho, Wyoming, and North and South Dakota.

It's easy to figure why residents of New Hampshire pay non-resident tax; they commute across the border to work. The same goes for other nearby states. And Florida is easy too, given the number of residents who retire to the Sunshine State and who receive income from Massachusetts.

But why would those 94 residents of South Dakota pay income tax in Massachusetts? Perhaps they are consultants who have worked here. Perhaps they are retirees who receive a pension from a Massachusetts-based company. Perhaps their dividend checks are paid by Massachusetts banks or financial institutions. Perhaps they moved out of Massachusetts that year.

Whatever the reason, the data indicates that Massachusetts is active in an economy that extends well beyond its borders.

Written By:

Recent Posts

MA Filing Extension to April 18th Announced posted on Apr 15

The Department of Revenue’s WebFile tool, which allows individuals to electronically file state personal income tax returns, has experienced delays due to heavy volume over the past few days. DOR is actively working to resolve this issue, and has extended the deadline for taxpayers to   …Continue Reading MA Filing Extension to April 18th Announced

WARNING: Tax Lien Notices NOT issued by DOR Making the Rounds posted on Mar 13

Here’s another unfortunate addition to the list of financial things to protect yourself from.  DOR has learned that letters of questionable origin are being sent to taxpayers with outstanding tax liens. Although these notices show amounts from actual tax liens, they are not from the Massachusetts   …Continue Reading WARNING: Tax Lien Notices NOT issued by DOR Making the Rounds

Don’t Let a Hacker Steal YOUR Refund posted on Mar 11

There are some rabbit holes you definitely don’t want to fall down during tax season. One such hole, and an increasingly-common nightmarish scenario, is finding out your tax refund has been stolen. In a recent article, Allison Martin of Money Talk News was the bearer   …Continue Reading Don’t Let a Hacker Steal YOUR Refund