Earlier this week, the Supreme Court denied New Hampshire’s motion to sue Massachusetts for the Bay State’s taxation of New Hamsphirites working from home during the pandemic. In doing so, the Court missed animportant opportunity to provide some certainty to remote workers about which states have a right to tax their income — and which do not.
Early on in the pandemic, Massachusetts’s Department of Revenue issued a tax rule that required non-residents who commuted to Massachusetts prior to the onset of the pandemic to continue paying income taxes to Massachusetts, even if they were working from home across state lines. While this rule was confusing and illogical for commuters from all nearby states, it was particularly impactful for New Hampshire residents, as the Granite State has no income tax.
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