A Guide to Filing Massachusetts State Tax as a US Expat

Federal taxes are an obligation for all US citizens and Green Card holders, regardless of where they live, but what about state taxes? For Massachusetts residents, the answer depends on whether you’ve fully cut ties with the state or not. If you keep a home, financial accounts, or strong connections in Massachusetts, the state may still consider you a resident for tax purposes and require you to file a Massachusetts state return.

If you’re a former resident of Massachusetts living abroad, here’s what you need to know about your state tax obligations.

Understanding Residency Rules in Massachusetts

Massachusetts determines residency for tax purposes based on domicile (your permanent legal home) and statutory residency (time and abode test). Even if you’re a nonresident, income sourced in Massachusetts may still be taxable. The state recognizes three categories: full-year resident, part-year resident, and nonresident, each with different tax obligations.

Statutory Residency

Even if you argue that your domicile is elsewhere, you may still be considered a Massachusetts resident under the statutory test if:

• You maintain a permanent place of abode in Massachusetts
• Spend more than 183 days in the state during the year.

Both conditions must be met for you to be considered a statutory resident. If you meet the statutory residency test, you’re taxed as a full-year resident on worldwide income.

Domicile Rules for Massachusetts

Beyond your physical presence in Massachusetts, residency is also determined by whether the state considers you domiciled there.

Your domicile, or legal residence, is your true home or main residence. While you may maintain multiple residences at the same time, you can only have one domicile. You cannot choose to make your home one place for day-to-day living and another for tax purposes.

Domicile refers to your “true, fixed, and permanent home,” the place you intend to return to. Massachusetts determines domicile based on all the facts and circumstances of your life. Generally, it is where you keep your closest family, social, economic, political, and community ties.

Even if you live overseas, Massachusetts may still treat you as domiciled if you maintain strong ties such as:

• A Massachusetts driver’s license or voter registration
• Ownership of a home or rental property in the state
• Dependents enrolled in Massachusetts schools
• A Massachusetts mailing address or financial accounts

To fully end your Massachusetts residency, you generally need to cut these ties and establish a new permanent residence abroad. Otherwise, Massachusetts can continue to treat you as a full-year resident and tax you on your worldwide income. With that being said, though, state residency is not black and white, and so just having a driver’s license or voter registration alone will not make you a Massachusetts tax resident by default.

Do You Need to File a State Return in Massachusetts as an Expat?

Once you understand your residency status, you can determine whether you need to file a Massachusetts return while living abroad:

Full-Year Residents

If Massachusetts still considers you a full-year resident, for example, because of domicile ties like a home, you must file a Massachusetts return. You’re also considered a full-year resident if you qualify as a statutory resident by maintaining a permanent place of abode in the state and spending more than 183 days there. Full-year residents are taxed on all worldwide income.

Part-Year Residents

If you moved into or out of Massachusetts during the year, you’ll need to file a Massachusetts return. The state taxes worldwide income during the months you lived in Massachusetts, plus any Massachusetts-sourced income for the rest of the year.

Nonresidents

If you’re classified as a nonresident — meaning you’ve cut Massachusetts domicile ties, don’t maintain a permanent home there, and spent fewer than 183 days in the state — you only need to file if you have Massachusetts-sourced income. Common examples include wages from a Massachusetts employer, rental income from Massachusetts property, or business income sourced to the state.

The table below summarizes Massachusetts’s residency classifications and how each status is taxed.

Learn more at the Massachusetts Department of Revenue

Does Massachusetts Have a State Income Tax?

Yes, Massachusetts imposes a flat income tax rate of 5% on most taxable income. You generally must file a Massachusetts return if your gross income is $8,000 or more, and you either meet residency rules or have Massachusetts-sourced income.

Massachusetts state income tax rates for 2025 (filed in 2026)

Note: While most income is taxed at the flat 5% rate, higher rates apply to specific types of capital gains.

For details, see the Massachusetts Department of Revenue – Tax Rates

Other Considerations

Massachusetts also taxes common types of income at the same flat individual rate 5% as wages, including:

• Rental income from property (whether in Massachusetts or abroad).
• Capital gains and investment income (most at 5%, but short-term capital gains at 8.5% and certain gains, such as collectibles, at 12%).
• Retirement income, including private pensions, 401(k) distributions, and IRAs, which are generally taxable at 5%.
• Social Security benefits are fully exempt from Massachusetts state income tax.

How Massachusetts Treats Foreign Income, Exclusions, and Tax Credits

When you file your federal return as a US expat, you may be able to use the Foreign Tax Credit (FTC), the Foreign Earned Income Exclusion (FEIE), or housing deductions to reduce or eliminate double taxation. Massachusetts, however, does not follow these federal provisions.

If you are considered a full-year or part-year resident, your worldwide income is taxable at the state level. You cannot exclude foreign earned income, deduct foreign housing expenses, or claim credits for foreign taxes paid. The only credit Massachusetts allows is for taxes paid to another US state on the same income. That means your income could end up being taxed twice, once by the country where you live and again by Massachusetts.

Massachusetts State-Specific Forms You May Need

• Form 1 – For full-year residents. This includes people domiciled in Massachusetts (your legal residence) even if you live abroad but haven’t cut ties, or those who keep a permanent home in Massachusetts and spend more than 183 days in the state.
• Form 1-NR/PY – For nonresidents and part-year residents who have Massachusetts-sourced income.
• Form 1-NR/PY + Schedule R/NR – Required if you are part-year/nonresident and had Massachusetts-sourced income during the nonresident portion of the year.

Tip: Expats who truly sever Massachusetts residency usually only file Form 1-NR/PY if they still have Massachusetts income (like rental property, business, or wages tied to the state).

Massachusetts State Tax Filing Deadlines and Extensions

Massachusetts state taxes are due April 15, the same date as your federal return. If you need more time, you can request a filing extension until October 15 by filing Form M-4868 with payment. This form serves as a payment voucher and secures your extension to file.

Keep in mind: an extension only applies to filing, not payment. Any Massachusetts taxes owed must still be paid by April 15 to avoid interest and penalties.

Form M-4868 is primarily used to make an extension payment and extend your filing deadline to October 15.

For full details, see the Massachusetts DOR guidance on extensions

Penalties for Not Filing

Failing to file Massachusetts state taxes can result in penalties, interest, and even enforcement action from the Department of Revenue (DOR). Massachusetts is known for closely enforcing compliance, including on taxpayers living outside the state, and will legally pursue unpaid taxes.

For details, see the Massachusetts Department of Revenue – Penalties and Interest

How to Sever Ties with Massachusetts and Avoid Future Tax Liabilities

If you’ve moved abroad and want to ensure Massachusetts no longer considers you a resident for tax purposes, you must demonstrate that you’ve severed your ties with the state. Massachusetts taxes full-year residents on worldwide income, so unless you take steps to end residency, the state may continue to treat you as domiciled.

Steps to Sever Residency:

• Surrender your Massachusetts driver’s license (and obtain a new one in your new country of residence, if possible)
• Sell or lease out any property in Massachusetts so you no longer maintain a permanent home there
• Move your banking and mailing address abroad to show a permanent shift in your financial and personal connections
• If applicable, unregister to vote in Massachusetts if you have another state you can register in

Establishing Foreign Residency:

It’s not enough just to leave the state; you must also prove you’ve established residency elsewhere. Showing ties such as foreign property, local bank accounts, and residency permits strengthens your case and helps prevent Massachusetts from classifying you as a resident for tax purposes.

States Without Income Taxes

Some states don’t impose an income tax at all. If you’re domiciled in one of these states, you typically won’t have to file a state return while living abroad:

• Alaska
• Florida
• Nevada
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming
• New Hampshire (as of January 1, 2025, when its Interest & Dividends Tax is fully repealed)

For expats, this can simplify things significantly. However, if you maintain ties to states that do impose an income tax, like California, New York, or Massachusetts, you could still be required to file and pay state taxes even while abroad.

Always confirm with your state’s Department of Revenue before assuming you’re exempt.

File It All at Once With MyExpatTaxes

Filing from abroad can feel overwhelming when you’re juggling both federal and state requirements. Massachusetts, in particular, is especially strict enforcing residency rules and worldwide income reporting, which means expats can’t afford to miss deadlines. With MyExpatTaxes, you don’t have to juggle separate filings. Our software makes it simple to file your federal and state returns together in one streamlined process.

Whether you’re still considered a Massachusetts resident, moved out mid-year, or need to prove nonresident status, MyExpatTaxes helps ensure every detail is handled correctly. And if your situation is more complex, our tax professionals are available to guide you through the rules so you can file with confidence.

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