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.
Class in Session at DOR University posted on Jan 20
Looking to educate yourself this tax season? Want to learn more about tax options, or DOR-related issues? All this can be achieved at DOR University, the Department of Revenue’s free online e-learning module. DOR University, created to offer free tax education to the public and …Continue Reading Class in Session at DOR University
Multi-agency investigation in two states leads to charges posted on Nov 19
Earlier this year, the Massachusetts Illegal Tobacco Commission, chaired by DOR Commissioner Amy Pitter, released a report on the illicit tobacco trade which recommends that teaming up with federal, state and local law enforcement can be a successful model for combatting such criminal activity. And …Continue Reading Multi-agency investigation in two states leads to charges
Top priority: protecting the taxpayer and the Commonwealth’s revenue posted on Oct 8
With identity theft on the rise, the Massachusetts Department of Revenue is taking new steps to combat the problem and protect taxpayers. In some cases, this means asking taxpayers to take a quiz before getting their state refund check. DOR is teaming up with LexisNexis …Continue Reading Top priority: protecting the taxpayer and the Commonwealth’s revenue