Overview of Massachusetts Taxes
Massachusetts has a flat income tax rate of 5%, but charges a 4% surtax on income over $1.083 million. Massachusetts also has a flat statewide sales tax rate of 6.25%.
Your 2025 Estimated State Income Tax:
Breakdown of Your Income Taxes
Your Annual Take-Home Pay
About This Calculator
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.
How Income Taxes Are Calculated
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First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
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Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer.
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Based on your filing status, your taxable income is then applied to the tax brackets to calculate your federal income taxes owed for the year.
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Your location will determine whether you owe local and / or state taxes.
When Do We Update? - We check for any updates to the latest tax rates and regulations annually.
Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.
Assumptions
Deductions
- "Other Pre-Tax Deductions" are not used to calculate state taxable income.
Credits
- The only federal credit automatically calculated is the Savers Credit, depending on your eligibility.
- We do not apply any refundable credits, like the Child Tax Credit or Earned Income Tax Credit (EITC).
- We do not apply state credits in our calculations.
Itemized Deductions
- If itemizing at the federal level, you may need to itemize at the state level too. Some states don't allow itemized deductions, which is accounted for in our calculations.
- When calculating the SALT deduction for itemized deductions, we use state and local taxes, and we assume your MAGI.
- We assume that there is no cap to itemized deductions, if a state allows them.
- We do not categorize itemized deductions (such as medical expenses or mortgage interest), which could be subject to specific caps per state.
Local Tax
- Depending on the state, we calculate local taxes at the city level or county level. We do not include local taxes on school districts, metro areas or combine county and city taxes.
- With the exception of NYC, Yonkers, and Portland/Multnomah County, we assume local taxes are a flat tax on either state taxable income or gross income.
Actual results may vary based on individual circumstances and changes in tax laws or IRS regulations. Estimates provided by this calculator do not guarantee income tax amounts or rates. Past performance is not indicative of future results.
SmartAsset.com does not provide legal, tax, accounting or financial advice (except for referring users to third-party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). Articles, opinions and tools are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. Users should consult their accountant, tax advisor or legal professional to address their particular situation.
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Taxes in Massachusetts
Massachusetts State Tax Quick Facts
- State income tax: 5.00% flat rate, 4% surtax on income over $1,083,150
- Sales tax: 6.25%
- Property tax: 1.00% effective rate
- Gas tax: 27.47 cents per gallon of regular gasoline
Boston Harbor may be the site of the most famous tax protest in history, but today Bay Staters pay taxes on a lot more than tea. The most significant taxes in Massachusetts are the sales and income taxes, both of which consist of a flat rate paid by residents statewide. The Massachusetts income tax rate is 5.00%. While the state sales tax of 6.25% is among the nation’s highest, there are no local sales taxes levied in Massachusetts.
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Massachusetts Income Taxes
The income tax rate in Massachusetts is 5.00%. That rate applies equally to all taxable income up to $1,083,150. As mentioned above, incomes that exceed this threshold are subject to a 4% surtax that was first instituted in 2023. State residents who would like to contribute more to the state’s coffers also have the option to pay a higher income tax rate. Few taxpayers choose to do so.
Massachusetts does not have a standard deduction, but it allows many of the same itemized deductions as the federal government, as well as some additional ones. For example, taxpayers can make deductions for child care expenses, college tuition (if it exceeds 25% of Massachusetts adjusted gross income), certain commuter costs, rental payments (50% of rent up to $4,000) and student loan interest payments.
In addition to those deductions, taxpayers can claim a personal exemption to lower their taxable income.
Massachusetts Personal Exemption Amounts
| Filing Status | Personal Exemption |
|---|---|
| Single | $4,400 |
| Head of Household | $6,800 |
| Married filing Separate | $4,400 |
| Married filing Joint | $8,800 |
Residents of Massachusetts are also subject to a penalty if they do not have health insurance coverage, which is paid through their tax return. The total penalty depends on income and only apply to individuals with incomes more than 150% of the federal poverty level.
Massachusetts Capital Gains Tax
Capital gains in Massachusetts are taxed at one of two rates. Most long-term capital gains, as well as interest and dividend income, are taxed at the standard income tax rate of 5%. Capital gains in those categories are included as taxable income on the Massachusetts income tax return. Short-term capital gains, which are realized in less than a year, are taxed at a rate of 8.5%, as are long-term gains on the sales of collectibles.
Massachusetts Sales Tax
The state sales tax rate in Massachusetts is 6.25%. There are no additional local taxes collected, so 6.25% is the rate you will pay regardless of where you are in the state. The tax is on the purchase or use of “tangible personal property.” This includes nearly any purchasable good, with some exceptions.
Most food sold in grocery stores is exempt from sales tax entirely. Clothing purchases, including shoes, jackets and even costumes, are exempt up to $175. A product that costs more than $175 is taxable above that amount, so a $200 pair of shoes would be taxed at 6.25% on the $25 above the exemption limit. Other exempt items include periodicals, admissions tickets (i.e. to movies or sporting events), professional or personal services and most health care products.
Massachusetts Property Tax
Property taxes in Massachusetts are one of the most significant sources of revenue for local governments. The median property tax bill in the state is $6,080, which ranks as the fifth highest in the nation.
If you are planning on refinancing or getting a home loan in Massachusetts, take a look at our Massachusetts mortgage rates guide.
Massachusetts Estate Tax
Massachusetts has its own estate tax, which applies to any estate above the exclusion amount of $2 million. If the estate has a gross value (before any deductions) over that level, a Massachusetts estate tax return must be filed. Estates of people who died on or after Jan. 1, 2023 are given a credit of $99,600 to reduce their estate tax liability.
Estate tax rates range from 0.8% to 16%.
Massachusetts Estate Tax Rates
| Taxable Estate | Marginal Rate |
|---|---|
| $0 – $40,000 | 0.00% |
| $40,000 – $90,000 | 0.80% |
| $90,000 – $140,000 | 1.60% |
| $140,000 – $240,000 | 2.40% |
| $240,000 – $440,000 | 3.20% |
| $440,000 – $640,000 | 4.00% |
| $640,000 – $840,000 | 4.80% |
| $840,000 – $1,040,000 | 5.60% |
| $1,040,000 – $1,540,000 | 6.40% |
| $1,540,000 – $2,040,000 | 7.20% |
| $2,040,000 – $2,540,000 | 8.00% |
| $2,540,000 – $3,040,000 | 8.80% |
| $3,040,000 – $3,540,000 | 9.60% |
| $3,540,000 – $4,040,000 | 10.40% |
| $4,040,000 – $5,040,000 | 11.20% |
| $5,040,000 – $6,040,000 | 12.00% |
| $6,040,000 – $7,040,000 | 12.80% |
| $7,040,000 – $8,040,000 | 13.60% |
| $8,040,000 – $9,040,000 | 14.40% |
| $9,040,000 – $10,040,000 | 15.20% |
| $10,040,000+ | 16.00% |
Massachusetts Cigarette Tax
Massachusetts has some of the highest cigarette taxes in the nation. The tax is $3.51 per pack of 20, which puts the average price of cigarettes in Massachusetts at around $9 per pack.
Massachusetts Alcohol Tax
Massachusetts taxes alcohol at varying rates: 11 cents per gallon of beer and $4.05 per gallon of liquor (including sales tax and other fees).
Massachusetts Gas Tax
Gasoline taxes in Massachusetts add up to 27.47 cents per gallon.