Every year, thousands of Massachusetts families move a few miles north into New Hampshire. Windham, Salem, Pelham, and Derry are all within a short drive of the border, and many people keep their Massachusetts jobs after they move. The question we hear most often is: Is there a Massachusetts exit tax?
The short answer is no. Massachusetts does not charge a tax for leaving. But moving to New Hampshire does not end your Massachusetts tax obligations right away, especially if you still work in the state. Here is what to know before you move.
This article is general information, not tax or legal advice. Talk to a CPA or tax attorney about your situation.
Where the "Exit Tax" Idea Comes From
The phrase usually refers to the Massachusetts income surtax, often called the millionaires tax. Since 2023, Massachusetts has added a 4% surtax on taxable income above a threshold that is adjusted for inflation each year. For 2026, that threshold is $1,107,750, according to the Massachusetts Department of Revenue. Income above it is taxed at a combined 9%.
The surtax covers total taxable income, including capital gains. People who are about to sell a business or a large investment sometimes move to New Hampshire first, which is where the “exit tax” talk comes from. It is not a tax on leaving. It taxes income earned while you are a Massachusetts resident.
Massachusetts vs. New Hampshire Taxes
| Tax | Massachusetts | New Hampshire |
|---|---|---|
| Tax on wages | 5%, plus 4% surtax on high incomes | None |
| Interest and dividends | Taxed as income | None (repealed starting in 2025) |
| Sales tax | 6.25% | None (8.5% tax on meals and rooms) |
| Property tax | Moderate | Among the highest in the country |
| Estate tax | Yes, above $2 million | None |
New Hampshire’s higher property taxes offset some of the savings, so run the numbers for the specific town and home you are considering. Our article on the cost of living in Massachusetts covers more of the comparison.
If You Live in New Hampshire but Work in Massachusetts
This is the part that surprises most people. Massachusetts taxes wages for work performed in Massachusetts, even if you live in New Hampshire. If you commute from Windham to an office in Andover or Boston, you will file a Massachusetts nonresident return and pay Massachusetts tax on those wages.
Days you work from home in New Hampshire are generally not treated as Massachusetts work, but the rules depend on your situation and your employer’s records. Keep track of where you work each day, and ask your tax advisor how to report it.
Leaving Massachusetts Does Not End Your Tax Obligations Right Away
You File as a Part-Year Resident
In the year you move, Massachusetts taxes the income you earned while you were a resident. After you leave, it can still tax income from Massachusetts sources, such as:
- Wages for work performed in Massachusetts
- Income from a business operating in Massachusetts
- Rent from Massachusetts property
- Gain from selling Massachusetts real estate
So if you move to Windham in March and sell your Andover house in June, the gain on that sale can still be Massachusetts income.
The 183-Day Rule
If you keep a permanent place to live in Massachusetts and spend more than 183 days there during the year, Massachusetts can tax you as a resident even if you now call New Hampshire home. This matters for people who keep their old house while they settle in.
Domicile Is About More Than an Address
Your domicile is the place you consider your true, permanent home. Tax authorities look at the full picture, including:
- Where you are registered to vote
- Which state issued your driver’s license and car registration
- Where your primary home is
- Where your children go to school
- Where you spend most of your time
If you are moving partly for tax reasons, make the move complete. A half move is what draws questions.
Estate Tax: Another Reason People Move North
Massachusetts has its own estate tax for estates above $2 million. New Hampshire has none. But real estate you still own in Massachusetts, such as a rental property or a Cape house, can remain subject to Massachusetts estate tax after you move. An estate planning attorney can help you plan for it.
Your New Hampshire Checklist
- Driver’s license and registration: New Hampshire gives new residents up to 60 days to get a New Hampshire license and register their vehicles. Registration starts at your town clerk’s office.
- Voter registration: Register in your new town.
- Property tax bills: New Hampshire towns bill property taxes twice a year in most cases. Ask your town for the current rate before you buy.
- Wells and septic: Many homes in Windham, Pelham, and Derry use private wells and septic systems. Test the water and inspect the septic before closing.
- Records: keep your moving contract and closing documents. They help show when your move happened.
Moving from Massachusetts to New Hampshire
First-Rate Moving & Storage has offices on both sides of the border, in Andover, MA, and Windham, NH. Our Andover movers pack your Massachusetts home, and our Windham movers know the New Hampshire towns you are moving into, including Salem and Derry. For more on the move itself, read moving from Massachusetts to Salem, NH.
Frequently Asked Questions
Does Massachusetts have an exit tax?
No. Massachusetts does not charge a tax for leaving the state. The term usually refers to the 4% surtax on income above $1,107,750 (2026).
If I move to New Hampshire, do I still pay Massachusetts income tax?
Yes, on any wages you earn for work performed in Massachusetts. You also file as a part-year resident in the year you move.
What is the 183-day rule in Massachusetts?
If you keep a permanent place to live in Massachusetts and spend more than 183 days there in a year, you can be taxed as a resident even if your domicile is in New Hampshire.
Is it cheaper to live in New Hampshire than Massachusetts?
New Hampshire has no wage tax and no sales tax, but its property taxes are higher. Whether you save depends on your income, where you work, and the home you buy.
How long do I have to get a New Hampshire driver’s license?
New residents have up to 60 days to get a New Hampshire license and register their vehicles.
Plan Your Move to New Hampshire
When your move date matters, you need reliable movers. Request a free estimate from First-Rate Moving & Storage, with offices at 89-93 Main St, Suite 204 in Andover and 10 Harris Rd Unit A in Windham.