Personal Income Tax for Residents

This extension covers filing tax returns, paying tax (including estimated tax), and filing tax extension forms with us. Massachusetts has a graduated state individual income tax, with rates ranging from 5.00 percent to 9.00 percent. Massachusetts also has a 6.25 percent state sales tax rate and does not have local sales taxes. Massachusetts has a 1.04 percent effective property tax rate on owner-occupied housing value.

Massachusetts: Federal FICA Rates in 2020

• Profit and prosper with the best of Kiplinger’s advice on investing, taxes, retirement, personal finance and much more.
• When an extension of time to pay is granted, interest will still accrue on any unpaid tax due from the original due date.
• Example 3 illustrates the tax computation for an estate in which the limitation is applicable.
• “General personal representative” excludes special personal representative.

The property may be vested or contingent, real or personal, tangible or intangible, jointly held or in the decedent’s name alone and, wherever situated, beneficially owned by the decedent at the time of death. 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. Qualifying deductions might include an itemized deduction, the Massachusetts standard deduction, exemptions for dependants, business expenses, etc. The Federal Income Tax, by contrast, has different tax brackets for Single, Married Filing Jointly, and Head of Household taxpayers. An overpayment claimed on a return may be applied as virtual accountant a credit for your next year’s estimated tax or you may request that it be refunded to you. An overpayment may also be offset or intercepted by the Department of Revenue and applied to another liability.

Massachusetts: Federal FICA Rates in 2025

In some counties, median property taxes paid exceed $6,000 per year. The median property tax bill in the state is $5,584 – one of the highest in the country. Unlike other states, Massachusetts does adjusting entries not have a state standard deduction.

• The state’s cultural offerings, including museums, theaters, and music venues, are among the best in the nation.
• Property taxes in Massachusetts are one of the most significant sources of revenue for local governments.
• Qualifying deductions might include an itemized deduction, the Massachusetts standard deduction, exemptions for dependants, business expenses, etc.
• The Tax tables below include the tax rates, thresholds and allowances included in the Massachusetts Tax Calculator 2021.
• If the form you are looking for is not listed here, you will be able to find it on the Massachusetts ‘s tax forms page (see the citations at the bottom of this page).
• Residents of Massachusetts are also subject to a penalty if they do not have health insurance coverage, which is paid through their tax return.

Federal Income Tax Tables in 2024

Understanding and complying with these state and local taxes is essential for residents and businesses in Massachusetts. The state’s tax system, while straightforward in terms of its flat income tax rate, requires careful attention to ensure compliance with sales, property, and service taxes. For a detailed understanding of Massachusetts’ tax system and the most up-to-date information, explore iCalculator™ US Tax HUB for Massachusetts. 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.

Massachusetts: Federal EITC(Earned Income Tax Credits) Rates and Thresholds in 2023

This overview provides a snapshot of the state taxation in Massachusetts, focusing on the various types of state taxes and the importance of compliance. While both individuals and businesses in Massachusetts are subject to federal taxes, understanding the specifics of state taxation is crucial for proper fiscal management. For many cities and towns, property taxes are the largest funding source for teachers, police, firefighters, public works like trash pick-up, and many other local resources and services. Massachusetts released its withholding methods for 2025, which incorporates the 4% surtax on high earners, effective from 2023, the state revenue department announced on Jan. 13.

Massachusetts Head of Household Filer Tax Tables

The state has a flat income tax rate, where all taxpayers, regardless of income level, pay the same percentage of their income in state taxes. This simplifies the tax calculation process for residents, though they still need to adhere to the complexities of the federal tax system, which uses a progressive rate structure. Taxpayers affected by presidentially declared disasters in the United States automatically get an extension for filing returns and submitting tax payments. The due date and payment date for returns and payments is extended for a specified period of time announced by the IRS unless we publicly announce otherwise.

An extension to file a return doesn’t extend the massachusetts tax table due date for paying any tax due. Tax-Rates.org provides free access to printable PDF versions of the most popular Massachusetts tax forms. Be sure to verify that the form you are downloading is for the correct year.

Massachusetts: Federal Retirement Plan Thresholds in 2022

• This extension covers filing tax returns, paying tax (including estimated tax), and filing tax extension forms with us.
• Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits.
• Massachusetts also has a 6.25 percent state sales tax rate and does not have local sales taxes.
• The distinct components of FICA, namely Social Security and Medicare, each have specific rates and caps that determine the amount of tax levied.
• The state’s income tax rate is only one of a handful of states that levy a flat rate.

When an extension of time to pay is granted, interest will still accrue on any unpaid tax due from the original due date. An extension is granted only for undue hardship/reasonable cause. An extension of up to three years from the original due date may be granted upon a showing of undue hardship/reasonable cause. The amount of the federal credit for state death taxes, or the portion thereof, computed using the Internal Revenue Code in effect on December 31, 2000, that is paid to Massachusetts. The value of property, or interest therein, as defined by the Internal Revenue Code in effect on December 31, 2000.

• Income tax deductions are expenses that can be deducted from your gross pre-tax income.
• The state has a flat income tax rate, where all taxpayers, regardless of income level, pay the same percentage of their income in state taxes.
• Here you can find how your Massachusetts is based on a flat tax rate.
• 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.
• This differs from many other states’ approaches to personal income tax, which typically tax different portions of your income at different rates.

Calculate Your Income Taxes in These Other States

The 2025 tax rates and thresholds for both the Massachusetts State Tax Tables and Federal Tax Tables are comprehensively integrated into the Massachusetts Tax Calculator for 2025. This tool is freely available and is designed to help you accurately estimate your 2026 tax return. These plans are designed to encourage long-term savings by providing tax advantages. Contributions made to these plans are typically pre-tax, meaning they are deducted from the employee’s gross income before taxes are calculated. This reduces the taxable income for the year, potentially leading to lower tax liabilities.