Massachusetts Guide for Canadians

Quick Facts

State Income Tax	5% on income over $8,000, plus 4% on income over $1 million (9% max)
Sales Tax	6.25% state only (no local sales tax)
Driver's License Grace Period	New residents must obtain MA license upon establishing residency
Residency Requirement for Tax	Resident for any part of tax year or domiciled in MA
Vehicle Registration Deadline	Immediately upon establishing residency
REAL ID Deadline	May 7, 2025 for domestic flights

First 90 Days Checklist

Week 1-2: Essential Documents

• Gather required documents for driver's license and REAL ID
• Open US bank account with Massachusetts address
• Establish temporary mailing address

Week 3-4: Official Registration

• Apply for Massachusetts driver's license (required immediately upon residency)
• Register vehicle if brought from Canada
• Register to vote in Massachusetts

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish Massachusetts ties and documentation
• Obtain Massachusetts vehicle insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents for REAL ID:

• Original valid Canadian passport
• Social Security Number documentation (if applicable)
• Two original proofs of Massachusetts residential address

Testing Requirements:

• Canada does not have license conversion agreement with Massachusetts
• Both written and road tests required for Canadians
• Vision screening required

Important Notes:

• Must obtain MA license immediately upon establishing residency
• REAL ID required by May 7, 2025 for air travel
• No grace period - license required when you become a resident

Vehicle Registration

• Register immediately upon establishing Massachusetts residency
• Annual safety inspection required
• Emissions testing required in certain areas
• Massachusetts insurance required for registration

Tax & Residency Considerations

Massachusetts State Tax Profile

• **Progressive income tax** 5% on income over $8,000, 9% on income over $1 million
• **No inheritance tax** but has estate tax
• **Moderate property taxes** (1.04% effective rate)
• **No local sales tax** - 6.25% state rate only

Establishing Massachusetts Tax Residency

Massachusetts residency is based on domicile and physical presence:

• Resident for any part of the tax year
• Domiciled in Massachusetts during tax year
• Physical presence supporting residency intent

Documentation to Establish Residency

• Massachusetts driver's license and voter registration
• Bank accounts and utility bills in Massachusetts
• Employment or business activities in Massachusetts
• Professional licenses, club memberships, property ownership

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Massachusetts has universal healthcare coverage requirements
• Travel insurance strongly recommended for visitors
• Consider comprehensive US health insurance for permanent residents
• World-class medical facilities in Boston area

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Excellent pharmacy networks and discount programs available

Special Considerations for Snowbirds

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (183-day rule)
• Maintain Canadian insurance & banking relationships
• Massachusetts residency determination requires careful planning

Property Considerations

• Higher property values than many states
• Various property tax exemptions available
• Consider impact on Canada's principal residence exemption
• Coastal property insurance considerations

Climate & Lifestyle Benefits

• Four distinct seasons with cold winters
• Rich history, culture, and educational opportunities
• Excellent public transportation in Boston area
• Strong Canadian expat community

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Track residency establishment carefully
• REAL ID available for enhanced travel convenience

Cultural and Educational Hub

Massachusetts offers world-renowned universities, cultural attractions, and historical sites. The state provides excellent quality of life with access to major metropolitan areas and natural beauty.

Key Contacts & Resources