Reside in MA but plan to do seasonal work in SD

[daniella_dayna]

• I'm currently a Massachusetts resident.  I plan to do some seasonal work in South Dakota, a non income tax state.  I have not made any income in MA this year and do not plan to.  I actually would like to establish residency in a new state.  But my question is how do I handle my taxes next year?  Do I still pay taxes to MA for work I did in SD?  Do I even have to file MA state taxes if I didn't make any income in MA?

[rjs]

Since you are a Massachusetts resident you have to pay Massachusetts tax on all of your income, no matter where the income is from. So you will have to file a Massachusetts tax return for 2025 and report the income that you earned in South Dakota.

[daniella_dayna]

Hi.  Thank you so much for your response! If I stay more than half this year in SD and establish a new domicile there, would I still be required to pay income taxes to MA?

[rjs · Accepted solution]

Domicile is a legal term. Your domicile is your permanent home, the place you intend to return to after being away. You can have only one domicile at a time, but you can have more than one residence.

You have to pay Massachusetts tax if you are a Massachusetts resident, even if your domicile is elsewhere. Each state has its own definition of a resident for income tax purposes. Here is the Massachusetts definition of a resident, from the Form 1 instructions.

"You are a full-year resident if your residence (domicile) is in Massachusetts or if you maintain a permanent place of abode in Massachusetts and during the year spend more than 183 days, in the aggregate, in the state."

Read the definition very carefully. Note that spending any particular amount of time outside of Massachusetts does not necessarily mean that you are not a resident.

Of course, you also have to pay Massachusetts tax on any income that you earn in Massachusetts, even if you are not a resident.

Finally, I am not a lawyer and I cannot give you legal advice. If your domicile or residence is not clear, you might wish to consult a tax lawyer in Massachusetts who can review all the details of your situation and advise you as to your domicile and residence, and whether you have to pay Massachusetts income tax.

[daniella_dayna]

Thank you for this very thorough response!  I wish to establish new everything--residency and domicile.  I've lived in MA for a long time now and want to break ties here and live in a new state and set up a new life.  I will be doing seasonal work in SD, but if I decide I want to stay in SD and set up there, I wondered if I'd still owe income tax to MA.

Again, thank you so much for taking the time to answer my questions!

[CatinaT1]

South Dakota is really easy to establish residency in. Many nomads use SD as their resident state because there is no state tax. Here is a website that explains how to do this: How to establish residency in South Dakota: A step-by- ...

[daniella_dayna]

I appreciate this link, thank you!