How does Massachusetts tax remote workers?

There are a few situations to consider. You may fall into more than one category. 

1. I lived in Massachusetts.
• If you're considered a full-year or part-year resident of Massachusetts, you will be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.
2. I worked remotely from Massachusetts.
• Massachusetts taxes income earned from personal services or activities performed while in Massachusetts (even if you're a nonresident), or income earned from a Massachusetts property (such as a rental property located in Massachusetts). This includes remote work for an employer or clients based outside Massachusetts if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state on your resident return for any income required to be reported in multiple states.
3. My employer was based in Massachusetts.
• If your employer was based in Massachusetts, they may have withheld Massachusetts taxes from your Massachusetts wages as shown on your W-2. However, if you did not live or work in Massachusetts, you will not owe Massachusetts taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
Up until May 11, 2023 and up to 90 days after, 803 CMR 62.5A.3 stated that nonresidents working remotely (outside the state) for a Massachusetts-based employer were subject to Massachusetts tax and should have Massachusetts taxes withheld on paychecks.
• You probably don't need to file a Massachusetts return at all unless you otherwise have a Massachusetts nonresident filing requirement.

If your wages were minimal and you did not do any other business in Massachusetts, it is possible you will be exempt from filing regardless of residency. See the Massachusetts Form 1 or Form 1-NR/PY instructions for more information.