The state levies a 6.25 percent sales tax on retail sales of tangible personal property in Massachusetts by any vendor. That includes gas, electricity, steam and telecommunications services sold or rented within Massachusetts. Also, taxpayers with taxable income of more than $1,053,750 in 2024 also must pay a 4 percent surtax. Filing your Massachusetts income tax return is usually done online or by mail.
Do I have to pay Massachusetts state income tax?
- The state levies a 6.25 percent sales tax on retail sales of tangible personal property in Massachusetts by any vendor.
- The federal rate table used to compute the credit for state death taxes is set out in the next section.
- The tax is $3.51 per pack of 20, which puts the average price of cigarettes in Massachusetts at around $9 per pack.
- The Senior Circuit Breaker tax credit is based on the actual real estate taxes paid on the Massachusetts residential property you own or rent and occupy as your principal residence.
- In general, a taxpayer’s Massachusetts gross income and many deductions are based on the taxpayer’s federal gross income and deductions under the IRC as of a specific date.
Changes to tax rates mass state tax brackets and brackets are usually made to reflect changes in the economy, revenue needs of the state, or changes in tax laws at the federal level. In Massachusetts, tax rates and brackets can be adjusted annually or biennially as part of the budget cycle. However, it is important to note that there is no fixed schedule for changing tax rates and brackets, and the frequency of changes can vary based on the state’s fiscal situation and legislative priorities. Additionally, changes to tax rates and brackets can also be influenced by external factors such as changes in federal tax laws or economic conditions. To use our Massachusetts Salary Tax Calculator, all you need to do is enter the necessary details and click on the “Calculate” button. After a few seconds, you will be provided with a full breakdown of the tax you are paying.
Income Tax Rate By State
Notably, Massachusetts has the highest maximum marginal tax bracket in the United States. You can learn more about how the Massachusetts income tax compares to other states’ income taxes by visiting our map of income taxes by state. In the Bay State, estates are taxed at rates ranging from 0.8 percent to 16 percent, depending on the value of the estate. The Personal Exemption, which is supported by the Massachusetts income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. The standard deduction, which Massachusetts does not have, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction.
Personal Income Tax for Residents
To e-file your Massachusetts and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS. While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies. The deadline to file a Massachusetts state income tax return was April 15, 2025.
- The Tax tables below include the tax rates, thresholds and allowances included in the Massachusetts Tax Calculator 2025.
- Notably, Massachusetts has the highest maximum marginal tax bracket in the United States.
- The tax is applied to wages, salaries, and other compensation within certain thresholds, which are adjusted periodically.
- Example 4 illustrates the tax computation for an estate in which the gross estate at death is less than $1,000,000, but the sum of the gross estate at death and the adjusted taxable lifetime gifts exceeds $1,000,000.
The most significant taxes in Massachusetts are the sales and income taxes, both of which consist of a flat rate paid by residents statewide. While the state sales tax of 6.25% is among the nation’s highest, there are no local sales taxes levied in Massachusetts. Massachusetts has a flat income tax rate of 5%, but charges a 4% surtax on income https://www.narciscernea.com/fifo-calculator-for-inventory/ over $1 million. The state’s income tax rate is only one of a handful of states that levy a flat rate. A nonresident individual who must file a Form 1-NR/PY to report the 4% surtax must include that individual’s taxable income as accounted for on a composite return. As a result, any tax payments made for the nonresident with the composite return should be reflected on Form 1-NR/PY to reduce the nonresident’s total tax.
Expansion of Septic Credit
The commonwealth also has a limited income credit, which can result in a tax reduction for a taxpayer whose income is close to the no-tax threshold. If your state tax witholdings are greater then the amount of income tax you owe the state of Massachusetts, you will receive an income tax refund check from the government to make up the difference. If you missed this deadline, you may be allowed a six-month extension if you paid at least 80% of the total amount of tax owed by the April due date.
Have Questions About Your Taxes?
You must claim your refund or credit within a certain time period, as further detailed below. Also, the Department of Revenue must issue refunds within a certain time period or pay interest on the amount of the refund. This page contains important information on the time limitations for claiming a refund and on the calculation of interest. Enter your filing status on either Form 1 or 1-NR/PY, Line 1, and fill in Coffee Shop Accounting the appropriate oval. Enter your spouse’s Social Security number in the appropriate space at the top of the return under taxpayer’s Social Security number.