U.S. Supreme Court Decides NH Cannot Sue Mass. Over Income Tax

The U.S. Supreme Court will not allow New Hampshire to file a lawsuit against the state of Massachusetts over income tax collected from residents who worked at home during the pandemic.

The court announced its decision on Monday without comment but said Justice Clarence Thomas and Justice Joseph Alito would have granted the motions.

New Hampshire residents who work in Massachusetts are subject to the Bay State's five percent income tax. During the pandemic both Republican New Hampshire Gov. Chris Sununu and Republican Massachusetts Gov. Charlie Baker urged people to work from home during the pandemic.

But Baker signed an emergency order allowing the tax to still be collected even though they never stepped foot into the Bay State. Sununu said the state would file a lawsuit claiming Massachusetts was essentially collecting an income tax on New Hampshire residents. New Hampshire does not have a state income tax.

Sununu and both U.S. Senators found common ground in slamming the courts' decision.

"By siding with the Biden Administration and allowing inappropriate taxation of NH citizens, the Supreme Court is setting a costly precedent. This decision will have lasting ramifications for thousands of Granite State residents," Sununu said in a statement.

"Very disappointing SCOTUS declined this case, which I believe punishes NH workers, particularly since so many put the health of their families and communities first to work from home amid the pandemic. I’ll continue to pursue legislative solutions in Congress to right this wrong," Sen. Jeanne Shaheen said in a message on her Twitter account.

"People working full-time in New Hampshire should not have to pay another state’s income tax. To not even hear a case that impacts so many Granite Staters' and Americans' pocketbooks is disappointing and short-sighted. What is happening to New Hampshire residents goes beyond New England and has a far-reaching impact on citizens across this country who are being forced to pay taxes for a state where they don’t even work or live," Hassan said in a statement.

Hassan said she will continue pushing forward legislation that will set strict and clear limitations on any state that tries to collect a tax from New Hampshire residents.

Contact reporter Dan Alexander at Dan.Alexander@townsquaremedia.com or via Twitter @DanAlexanderNH