Massachusetts and New Hampshire are two neighboring states in the northeastern region of the country. Both states provide citizens with distinctive lifestyle options. The cost of living does, however, vary widely between states. Which state, Massachusetts or New Hampshire, is therefore more affordable to live in?
New Hampshire often has lower living expenses than Massachusetts does. The cost of living in New Hampshire is 5.7% less than in Massachusetts, according to statistics from Numbeo, a website that evaluates the cost of living in various cities and nations. As a result, New Hampshire is more affordable than Massachusetts for necessities including housing, food, utilities, and healthcare.
It’s vital to remember that Massachusetts has a 6.25% sales tax and a flat state income tax of 5.05% while New Hampshire has neither. This implies that you must pay state income tax on your earnings if you work in Massachusetts. On the other hand, you must pay Massachusetts state income tax if you reside in New Hampshire but work in Massachusetts. No matter where your taxable income was generated, you must pay state income tax on it if you intend to make Massachusetts the location of your legal abode or domicile. You can be eligible for a tax credit to offset the taxes you paid to the other state if you reside in Massachusetts but work in another.
In light of this, some people may be eligible for no-tax status in Massachusetts. For instance, Massachusetts state income tax may not be due if you are a full-time student under the age of 24. Additionally, you might not be required to pay Massachusetts state income tax on your earnings if you are a non-resident who works there for fewer than 183 days per year.
In Massachusetts, if you make $50,000 a year, your take-home income after taxes is roughly $41,000. This assumes a single filer who claims the standard deduction and has no dependents. Your take-home pay, however, may vary based on your filing status, the number of dependents you have, deductions you make, and other variables.
You must deduct your deductions from your gross income in order to determine your taxable income. Mortgage interest, charitable donations, and company expenses are all eligible for deductions. You can use a tax calculator or speak with a tax expert to assess your tax liability once you have determined your taxable income.
Conclusion: Despite the fact that New Hampshire typically has cheaper living costs than Massachusetts, living in either state has tax ramifications that can have a big impact on your overall costs. When picking which state to live in, it’s crucial to take both the cost of living and the tax regulations into account. A financial planner or tax expert can also assist you in making a decision that is appropriate for your particular situation.