I work in PA and lives in MA which state do I pay taxes in?

PA withholds income taxes, right? You will most likely file a non-resident return in PA, and the customary return in MA, taking a credit for taxes paid in PA for those owed in MA. If MA has higher income taxes, you may owe a penalty; MA will request you file quarterly estimated taxes in that event. At least, this is my experience in two other states.

Well said, George.

Calli, you need to have some money withheld for MA as well.