If you live outside Massachusetts but earn money connected to the state, the Massachusetts non-resident income tax applies at a flat 5% on that Massachusetts-source income. Once your Massachusetts taxable income tops $1,083,150 for the 2025 tax year (returns filed in 2026), an additional 4% surtax applies to the excess, bringing the rate on that portion to 9%. You file Form 1-NR/PY by April 15, 2026 if your Massachusetts gross income for the year exceeds $8,000 or your prorated personal exemption, whichever is less.
The 5% Rate and the 4% Surtax
Massachusetts does not use graduated brackets. Every dollar of taxable income sourced to the state is taxed at 5%, whether you earn a little or a lot.1Mass.gov. Massachusetts Tax Rates Residents, part-year residents, and non-residents all pay the same rate on the income the state can reach.
The Fair Share Amendment, approved by voters in 2022, added a 4% surtax on annual taxable income above a threshold that started at $1,000,000 and adjusts yearly for inflation.2General Court of Massachusetts. Massachusetts Code Chapter 62 Section 4 – Rates of Tax for Residents, Non-Residents and Corporate Trusts For 2025 the threshold is $1,083,150.3Massachusetts Department of Revenue. Massachusetts 4% Surtax on Taxable Income The surtax reaches all taxable income, not just wages, so a large capital gain on the sale of Massachusetts real estate can push a non-resident over the line.
What Counts as Massachusetts-Source Income
Massachusetts can only tax non-residents on income connected to the state. The statute breaks it into three main categories.4Mass.gov. Mass General Laws c62 Section 5A – Taxation of Income Earned by Non-Residents
- Wages, salaries, commissions, bonuses, and self-employment income earned while physically working in Massachusetts.
- Winnings from a Massachusetts-licensed casino, sportsbook, or lottery transaction.
- Rental income from Massachusetts real estate, gains from selling Massachusetts property, and income from tangible personal property located in the state.
Income from intangibles like dividends, interest, and stock capital gains is generally not Massachusetts-source income for non-residents unless it’s connected to a business you run in the state.5Massachusetts Department of Revenue. 830 CMR 62.5A.1 – Non-Resident Income Tax
Pass-Through Entity Income
If you’re a non-resident partner in a Massachusetts partnership or shareholder in a Massachusetts S corporation, your share of the entity’s Massachusetts-source income is taxable to you. The entity can elect to pay a 5% pass-through entity excise, in which case each qualified member receives a credit equal to 90% of their share of the excise paid.6Mass.gov. Elective Pass-through Entity Excise Non-resident members can also be covered by a Non-Resident Composite Return filed by the entity.
Remote Work for a Massachusetts Employer
Massachusetts has no permanent “convenience of the employer” rule. If you work entirely from your home in another state for a Massachusetts employer, that income is generally not Massachusetts-source income, and the employer does not need to withhold Massachusetts tax on it.7Mass.gov. Withholding Taxes on Wages The state follows where you physically sit while working, not where your employer is headquartered. A temporary COVID-era rule that treated some remote work as Massachusetts-source income expired 90 days after the state of emergency ended.8Massachusetts Department of Revenue. 830 CMR 62.5A.3 – Massachusetts Source Income of Non-Residents Telecommuting due to the COVID-19 Pandemic
Apportioning Income When You Work in More Than One State
If your job takes you in and out of Massachusetts, you don’t owe tax on your entire salary. You apportion it by workdays: Massachusetts workdays divided by total working days for the year, multiplied by gross compensation.5Massachusetts Department of Revenue. 830 CMR 62.5A.1 – Non-Resident Income Tax
Total working days exclude holidays, sick days, vacation, and any leave. A day split between Massachusetts and another location counts as a Massachusetts day unless you can prove you worked outside the state for more than half that day. Keep a detailed daily log. Apportionment disputes turn on this evidence.
Commission-based pay apportions on the ratio of Massachusetts sales to total sales. Employees paid by the mile use Massachusetts miles over total miles.9Massachusetts Department of Revenue. 2025 Form 1-NR/PY Instructions
When You Have to File
You must file a Massachusetts non-resident return if your Massachusetts gross income for the year exceeds the lesser of $8,000 or your prorated personal exemption.10Massachusetts Department of Revenue. Who Must File a Massachusetts Personal Income Tax Return The prorated personal exemption is the full exemption multiplied by the ratio of Massachusetts-source income to total income from all sources.11Mass.gov. Massachusetts Personal Income Tax Exemptions For most non-residents with meaningful Massachusetts earnings, the $8,000 figure is what triggers the filing duty.
The base personal exemption is $4,400 for a single filer and $8,800 for married filing jointly, but non-residents don’t get the full amount. If you earned $50,000 in Massachusetts and $200,000 total, your exemption drops to 25% of the base.
Military Spouse Exemption
Under the Military Spouses Residency Relief Act, the spouse of an active-duty servicemember may be completely exempt from Massachusetts tax on wages earned in the state. The spouse must not be a Massachusetts domiciliary, must be in the state solely to be with the servicemember on military orders, and must share the servicemember’s domicile in another state.12Massachusetts Department of Revenue. TIR 09-23 – Effect of the Military Spouses Residency Relief Act
Deductions and Exemptions Are Prorated
Non-residents have access to essentially the same deductions and exemptions as residents, but every amount is prorated by the ratio of Massachusetts-source income to total income.5Massachusetts Department of Revenue. 830 CMR 62.5A.1 – Non-Resident Income Tax Business expense deductions, the personal exemption, and adjustments to gross income all shrink in proportion when Massachusetts is only a slice of your total earnings.
Avoiding Double Taxation With Your Home State
Most states with an income tax provide a credit for income taxes paid to other jurisdictions. If you live in Connecticut and pay Massachusetts tax on wages earned in Boston, Connecticut will generally let you claim a credit for the Massachusetts tax when you file at home. Check your home state’s rules for the “credit for taxes paid to another jurisdiction.” If your home state has no income tax, the question doesn’t arise.
Estimated Payments if Nothing Is Withheld
If you earn Massachusetts-source income that isn’t subject to withholding, such as rental income from Massachusetts property, self-employment income, or gambling winnings, quarterly estimated payments may be required. The requirement starts when expected tax on income not subject to withholding exceeds $400, and you’re expected to pay at least 80% of your annual Massachusetts tax through withholding or estimated payments before filing.13Mass.gov. Massachusetts DOR Estimated Tax Payments Come up short and you’ll face interest on the underpayment.
Filing the Return
Non-residents use Form 1-NR/PY, the Nonresident or Part-Year Resident Income Tax Return.9Massachusetts Department of Revenue. 2025 Form 1-NR/PY Instructions You’ll want your federal return as a starting point, W-2s and 1099s reflecting Massachusetts income and withholding, and, if you’re apportioning, records of your Massachusetts workdays against total workdays. The form includes a Nonresident Apportionment Worksheet for split-location workers.
You can file electronically through MassTaxConnect, which confirms receipt immediately.14Massachusetts Department of Revenue. E-file and Pay Your MA Personal Income Taxes Paper filing is still allowed by mailing the signed form and schedules to the address in the instructions. Electronic filers can pay by electronic funds transfer. Paper filers mail a check with the payment voucher.
Extensions
Massachusetts grants an automatic extension to file, but only if you’ve paid at least 80% of the tax you owe by the original due date. If you meet the 80% test and owe nothing more, no form is required to get the extension. If you still owe and need to submit an extension payment, use Form M-4868 or pay through MassTaxConnect. Extension payments of $5,000 or more must be made electronically.15Mass.gov. 2025 Form M-4868 Massachusetts Income Tax Extension Payment Worksheet and Voucher An extension buys time to file, not time to pay. Interest runs on any unpaid balance from the original due date.
Deadlines and Penalties
The 2025 Massachusetts non-resident return is due April 15, 2026.14Massachusetts Department of Revenue. E-file and Pay Your MA Personal Income Taxes The late-filing penalty is 1% of unpaid tax per month or partial month, up to 25%.16Massachusetts Department of Revenue. Massachusetts Penalties and Interest Assessed by DOR Interest on unpaid tax runs on top of penalties. For the first half of 2026 the interest rate is 3.75% per year.17Office of the Comptroller. Fiscal Year Memo 2026-11 – Late Penalty Interest Rate If you can’t pay in full, filing on time still helps: you’ll owe interest on the balance rather than interest plus a late-filing penalty.