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. Qualifying deductions might include an itemized deduction, the Massachusetts standard deduction, exemptions for dependants, business expenses, etc. New residents can obtain information on state tax rates from the Massachusetts Department of Revenue’s website. Massachusetts imposes a 6.25% sales tax on retail sales of tangible personal property in Massachusetts by any vendor. A Massachusetts full-year or part-year resident is required to file a state tax return if his Massachusetts gross income is in excess of $8,000.
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- There is a convenience fee of 2.35% of your payment amount charged by the third-party vendor that provides this service.
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- Massachusetts also has a 6.25 percent state sales tax rate and does not have local sales taxes.
- To determine the amount of tax you’ll need to pay, make sure to include any deductions you are eligible for.
- Payments in MassTaxConnect can be deleted from the Submissions screen.
For the fiscal year of 2025, $762 million has been allocated to education initiatives. Breakfast and lunch are now free for all students attending public schools. $80 million has been awarded to financial aid programs like MassGrant Plus for state university students.
Cigarette Smuggling Cost States Nearly $5 Billion in Forgone Excise Tax Revenue Each Year
Massachusetts allows for other miscellaneous deductions, such as jury duty pay surrendered to your employer, some attorney fees and court costs for unlawful discrimination and other expenses. Some states have a progressive tax, while others have a flat tax. We already see glimpses of the transformative potential the Fair Share Amendment can have on public finances and the positive impact it can have across the Commonwealth.
Massachusetts Tax Deductions
Use this tool to compare the state income taxes in Massachusetts and New York, or any other pair of states. This tool compares the tax brackets for single individuals in each state. Massachusetts has a 27.37 cents per gallon gas Food Truck Accounting tax rate and a $3.51 cigarette excise tax rate.
Notice Regarding Qualified Data Center Tax Exemption
Individual taxpayers can make bill, estimated, extension, or return payments on MassTaxConnect without logging in. Draft Massachusetts withholding methods effective Jan. 1, 2025, update the threshold for the 4% surtax on taxable income for high earners, effective since 2023. The Federal Income Tax, by contrast, has different tax brackets for Single, Married Filing Jointly, and Head of Household taxpayers. All real and tangible personal property located within the commonwealth of Massachusetts is taxable unless specifically exempted by statute. If you got slammed with a big tax bill last year, you have a couple of options to prevent it happening again.
While the state levies a 5% tax on income up to $1 million, state tax ma income over $1 million is taxed at 9%. Your deductions play a key part in filing your taxes, and while some people find it easier to not file their deductions and “just pay the extra tax”, it makes a difference in the long run. For example, if you are running a small business, there are many simple things that you are able to have tax deducted from. Perhaps office supplies, repairs on your office computers, building repairs, or even purchasing your workers’ suitable clothing for their job (e.g. a plumber should be wearing a boiler suit).
State and Local Tax Burdens, Calendar Year 2022
You can use MassTaxConnect for free if you need to file a return to qualify for a MA credit. Before filing, you can learn more about the advantages of filing online. If you file online, you can expect to receive your refund within 2 weeks. If filing on paper, you should receive your refund within 6 weeks. Once a Payment Channel is added, to make a payment using another method simply access the payment detail screen and select the New button. Any business taxpayer registered with DOR is eligible to use this option.
Compare Your After-Tax Income To Other States
The State of Massachusetts collects $8,110 in state and local tax collections per capita. Massachusetts has $14,534 in state and local debt per capita and has a 69 percent funded ratio of public pension plans. Massachusetts’s tax system ranks 41st overall on the 2025 State Tax Competitiveness Index.
There is a three-month grace period for health coverage lapses, after which the penalty accumulates on a monthly basis, up to about $183 per month. Lawmakers should keep that reality in mind as they make changes to tax and economic policies. The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to normal balance show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement. In Massachusetts, average property taxes are paid about 1.14% of assessed home value, according to the Tax Foundation. You can deduct any expenses that exceed $150; taxpayers who are married and filing jointly can deduct expenses above $150 for each person.
