Can You Keep Your Massachusetts Job and Live in NH?

Jul 10
6 min read

A growing number of professionals want to know whether they can live in NH, work in Massachusetts, and still come out ahead. The short answer is yes, and it is one of the most common relocation patterns on the Seacoast and in southern New Hampshire. But whether it actually saves money, and how the commute or remote arrangement plays out day to day, depends on a few specific factors: how your income is taxed, how often you physically work in Massachusetts, and how far your new home sits from your job or from Route 95, Route 93, or the commuter rail.

This guide walks through what actually happens when you keep a Massachusetts job and relocate across the border, so you can make the decision with accurate information rather than assumptions.

Can You Legally Work for a Massachusetts Company While Living in New Hampshire?

Yes. There is no legal restriction that requires an employee to live in the same state as their employer. Thousands of New Hampshire residents work for Massachusetts-based companies, either by commuting into Massachusetts, working a hybrid schedule, or working fully remotely from a New Hampshire home.

The more important question is not whether it is allowed, but how your wages are taxed once you make the move.

How Does Massachusetts Tax New Hampshire Residents?

Massachusetts taxes income based on where the work is physically performed, not where the company is headquartered and not where the employee lives. This is the single most important rule to understand before relocating.

Here is how it breaks down:

If you live in New Hampshire and physically commute into a Massachusetts office, the wages you earn for the days you work in Massachusetts are considered Massachusetts-source income and are subject to Massachusetts income tax, currently a flat 5 percent rate, with a 4 percent surtax on income above roughly $1 million.

If you live in New Hampshire and work fully remotely from your New Hampshire home, without regularly performing work in Massachusetts, that income is generally not subject to Massachusetts income tax, since New Hampshire has no state income tax on wages.

There is no reciprocity agreement between the two states, meaning New Hampshire residents who do commute into Massachusetts cannot offset that tax with a credit from New Hampshire, since New Hampshire simply does not tax wage income in the first place.

What Happened to the Massachusetts "Convenience of the Employer" Rule?

During the COVID-19 pandemic, Massachusetts enacted a temporary rule stating that employees who had worked in Massachusetts before the pandemic, but were now working remotely from another state, would still owe Massachusetts income tax as if they were physically present in the state. New Hampshire challenged this rule directly, filing a case with the United States Supreme Court in New Hampshire v. Massachusetts. The Supreme Court declined to hear the case in 2021, and Massachusetts allowed the emergency rule to expire in September 2021.

Under current rules, Massachusetts taxation is based on physical work location. A New Hampshire resident working genuinely remotely for a Massachusetts employer, without regularly reporting to a Massachusetts worksite, is not subject to Massachusetts income tax on that income. Employees with a hybrid schedule should keep track of which days are worked in each state, since that record affects how much Massachusetts tax is owed and how much may be eligible for a refund if too much was withheld.

Does Moving to NH Actually Save Money If You Still Commute to Massachusetts?

This depends heavily on how much of your work happens in Massachusetts versus New Hampshire. For a fully remote employee, the tax savings can be substantial, since New Hampshire has no tax on wages and no general sales tax. For someone commuting into a Massachusetts office five days a week, the income tax savings largely disappear, since Massachusetts still taxes wages earned for days physically worked there.

There is also a property tax tradeoff to factor in. New Hampshire has some of the highest property tax rates in the country, since the state relies on property taxes in place of income and sales tax. A home in southern New Hampshire can carry a noticeably higher property tax bill than a comparably priced home just across the border in Massachusetts.

For many households, the break-even point where New Hampshire's tax advantage outweighs its higher property taxes lands somewhere in the moderate to upper income range, which is why this move tends to make the most financial sense for remote or hybrid workers with fewer in-office days, rather than full-time commuters.

What Are the Best NH Towns for Massachusetts Commuters?

Southern New Hampshire has several towns built around easy access to the Massachusetts border and the Route 93 or Route 95 corridors. Common choices include Salem, Windham, Pelham, Londonderry, Derry, Plaistow, and Hampstead, all of which sit within a short drive of the state line and offer more space and lower home prices than comparable Massachusetts suburbs.

For those working in Boston specifically, towns closer to Interstate 93, such as Salem and Windham, tend to offer the shortest commute times, while Seacoast towns like Portsmouth, Exeter, and Stratham appeal more to those commuting occasionally or working hybrid schedules, since they combine coastal lifestyle with reasonable access to Route 95.

What Should You Ask Your Employer Before Making the Move?

Before relocating, it is worth having a direct conversation with your employer about a few specific points.

First, confirm whether your role will be classified as fully remote, hybrid, or in-office, since this directly affects your Massachusetts tax exposure.
Second, ask how your employer handles state tax withholding for New Hampshire-based employees, since some payroll systems default to withholding Massachusetts tax unless corrected.
Third, clarify expectations around occasional in-office days, since even a hybrid schedule with regular Massachusetts office days will generate some Massachusetts-source income that needs to be reported.

Massachusetts vs New Hampshire: A Quick Comparison

Massachusetts charges a flat 5 percent income tax, with a 4 percent surtax above roughly $1 million in income, and has a state sales tax of 6.25 percent, alongside moderate property tax rates. New Hampshire has no tax on wage income and no general sales tax, but property tax rates run well above the national average. For a remote worker, New Hampshire's structure typically favors the household. For a full-time in-office commuter, the two states end up closer to even once property taxes are factored in, since Massachusetts wages remain taxable by Massachusetts regardless of where the employee lives.

Is Living in NH and Working in Massachusetts Worth It?

For remote and hybrid employees, the answer is often yes. Eliminating state income tax on wages, combined with no sales tax on everyday purchases, can add up to meaningful annual savings, and many New Hampshire border towns offer larger homes and more land than equivalent Massachusetts suburbs.

For employees required to be in a Massachusetts office full time, the decision becomes more about lifestyle and housing preference than tax savings, since Massachusetts will continue taxing those wages regardless of where the employee sleeps at night.

Either way, the decision should be based on your specific work arrangement, your income level, and an honest look at property tax costs in the New Hampshire town you are considering, not on the general assumption that New Hampshire is automatically the cheaper option.

If you're thinking about making a move, I'd love to help with your buying or selling needs. Reach out to me, Hunter Letendre, REALTOR® with Berkshire Hathaway HomeServices Verani Realty, licensed in New Hampshire, Maine, and Massachusetts. Whether you are keeping a Massachusetts job and relocating to the Seacoast, a southern NH commuter town, or somewhere in between, I can help you find a home that actually fits your commute, your budget, and your day-to-day routine.