State estimated tax split for mid-quarter move (MA to VA)

[user17702218753]

Hi everyone,

I am moving from Massachusetts to Virginia in May. I am currently a student, and I have interest and dividend income that requires me to pay estimated taxes throughout the year. Starting in July, I will also begin working for a company in DC and will have salary income. I am not worried about making estimated payments for my salary income since my employer will handle the withholding; I just need to ensure I’m paying the correct estimated amounts for my interest and dividend income.

For 2026, I am planning to follow the safe harbor method by paying 100% of my total 2025 tax liability (divided into four equal quarterly installments).

However, I'm not clear on which state I should make these payments to for each quarter. I’m particularly unsure about the second quarter (April–June) since I will live in Massachusetts for the first two months and Virginia for the final month.

How should I handle the payment for the second quarter, and how does the month of June count toward my state residency for these payments?

Any advice on how to split or direct these state-level payments during a mid-quarter move would be very helpful.

[MarilynG1]

When filing a Part Year Resident Return, report the income/tax to the state you lived in when you received it.  You may need to calculate a % of estimated tax to pay to each state, based on the income you will receive while living there.

An easy allocation method is to divide the year's interest by 12, and then multiply the figure by the number of months you lived in each state.

Here's more info on Allocating Income for a Part-Year Resident.

@user17702218753 

[user17702218753]

Thank you for the suggested method. I’m wondering if I’ll need to estimate the specific income I received while living there?

For my federal estimated taxes, I’m planning to use the 'Safe Harbor' method by taking my total tax liability from last year and dividing it by four. Does the state offer a similar safe harbor? If so, could I simply take last year’s total state tax liability, divide it by 12, and multiply that by the number of months I lived in the state?

[AmyC]

Yes, to some extent for estimates and completely for your tax return next year. It is a good idea to keep up with dividend dates and residence, etc.

For the estimates:

• MA safe harbor requires you to pay 80% of this year's tax or 100% of last year's to avoid penalties. Since you are moving out of MA, you will pay them the first 2 quarters for the income earned while living there.
• VA - the first payment is due May 1 but you do not need to pay that estimate since you will not be a resident. You will start with June 15th payment to cover VA income or you could wait until Sep 15 to cover the whole time in VA to that point. Then file the last quarter on time.

Caution: : Since you will be a Virginia resident working in DC, you are protected by reciprocity.  

Make sure to file Form D-4A with your DC employer so they withhold VA taxes instead of DC taxes. DC will not tax your salary; only Virginia will.