Do you pay taxes on your payroll check for where you live or where you work?

Question

Do you pay taxes on your payroll check for where you live or where you work?

Answer 1

Income tax witholding based on where you live.

Answer 2

Generally, where you live.

Answer 3

Your employer takes taxes out based on where you WORK since this is considered the source of your income.  

For example, I live in New Hampshire and work in Massachusetts.  My employer taxes my income for Federal and Massachusetts income tax.  I pay Massachusetts income tax because my income comes from a Massachusetts source (my employer).  Since New Hampshire does not have income tax, I do not have to file a New Hampshire return, only Federal and Massachusetts.