Relocating to CT but working in MA.

Submitted by J_Bro00 t3_yeepxa in Connecticut

Hi, was wondering if anyone could shed some light on this, I'm relocating for work (which is in MA) but due to a few reasons my wife and I prefer to live in CT. What are the tax implications for working in MA but living in CT? Are there any other taxes and unforseen expenses I should know about living in CT?

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Billh491 t1_itxp9zz wrote

I have done this and the way it works is mass will collect its income tax from you. Then you will get a credit for those taxes when you file in CT. You will have 3 tax returns 2 states plus fed.

So say you make 100k and the mass tax is 5% you pay them 5k. CT tax is 6% you pay ct 1k. Or mass is 6% so you pay them 6k and say ct was 5% you owe ct nothing.

I don't know the exact rates just used these as an example.

Also we pay property taxes on our cars which maybe a new thing for you.

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J_Bro00 OP t1_itxpu39 wrote

Really on cars? Definitely would be new for me how much do you pay on car taxes? Also thank you for the info! Very valuable information

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TheDizzyTablespoon t1_ity03fs wrote

My father lives in MA and I was dealing with the things he had to pay when he was hospitalized. I remember he received a tax bill that he told me he pays every year. I thought it was the same as a car tax.

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Billh491 t1_itxqhle wrote

so each town has a mill rate which is how much you pay per 1000 in value. So a mill rate of 35 would mean a 35.00 tax bill for your car.

Now look up how much your car is worth on say kelly blue book. Say it is worth 20k you take 70% of that is 14k so you pay 35 times 14 = 490.00 car tax.

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Yowowser t1_itxx1ts wrote

Actually is capped at like 24 or 27% for cars. Best the tax by buying a 25 year old car and build it out. It can be worth 20k d when your done and taxed like it's worth$500

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Prestigious_Bobcat29 t1_iu0emmq wrote

MA pays property tax on cars as well fwiw

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Kodiak01 t1_iu126c2 wrote

MA refers to theirs as an Excise tax. Their formula is also much simpler than CT.

Here is how MA figures their auto tax:

Tax is $25 per $1000 valuation. Valuation is based off a percentage of MSRP, a figure which stays static for the life of the vehicle. (Note this is MSRP, NOT the actual purchase price of the vehicle)

Prior to current model year (2023 vehicle in 2022): 50%

Current model year: 90%

2nd year: 60%

3rd year: 40%

4th year: 25%

5th year and older: 10%

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web4deb t1_iu0ssdz wrote

I live in CT and work in MA. No big deal. You just file a tax return for each state. (Plus your first year you'll still probably file a return for your current state)

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Kodiak01 t1_iu118k5 wrote

Pay full tax in MA. File MA taxes first, you will need the total tax payment to use as a credit against your CT taxes.

CT has a higher income tax rate than MA, so budget for the extra you are likely going to pay. Myself, I just take a few extra $ a week with my MA taxes, then use the "refund" from that to pay whatever I owe CT.

Do you rent? Once you move to MA, you will lose the ability to take the $3000 AGI deduction for rental payments off your MA taxes

Vehicle property taxes are more complicated and variable than MA auto excise tax. It is based on the current value of the vehicle as opposed to MA excise being a percentage of MSRP by age which stays static. They are typically due in July, billed by the town.

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