While the movie's exterior scenes were shot on location in and around Boston, many of the interior scenes were filmed on a soundstage at an armory in Brooklyn after extensive research was conducted by Scorsese's crew in order to capture the look and feel of the characters' Boston homes, workplaces and hangouts.
"We got a very good shooting deal here in New York, as opposed to Boston," Scorsese said. "After going to Boston and looking at locations, we thought we could double (the interiors here.)It turned out to be much more advantageous for us."
"The new tax break that we got helped out for the movie," said producer Graham King. "And, also, when you're shooting interiors and you're building everything, you can shoot anywhere and it was very convenient, especially for Marty because he lived here."