Massachusetts Tax Brackets for the Single Filing Type

Residents who are 65 or older by Dec. 31, 2024, can receive a $700 exemption on top of the state’s personal exemptions. Contact your city or town to see if they participate.View tax tips for seniors and retirees in Massachusetts. But you may pay federal taxes on a portion of your Social Security benefits, depending on your income.

Your 2024 Federal Income Tax Comparison

Discrepancies can result in additional tax assessments, interest, and penalties. Businesses are encouraged to implement robust record-keeping systems to minimize the risk of errors and ensure compliance. Retailers collect sales tax at the point of sale and submit collections to the DOR, typically monthly or quarterly, using Form ST-9. Businesses must maintain accurate records of transactions, including invoices and sales receipts, for at least three years to ensure transparency and facilitate verification by the DOR. Overall percentages of the tax levy by the respective class groupings from FY2015 to FY2024 are seen in the following chart.

The Massachusetts Income Tax

• If you own a residential property in Massachusetts and paid to remove or fix a lead paint issue, you may be eligible for a tax credit, provided you complied with state laws.
• 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.
• However, the amount of any scholarships, grants or financial aid that the student receives needs to be subtracted from the total tuition.
• 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.
• Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.

The state extension deadline follows the federal extension deadline set by the IRS, which is Oct. 15, 2025. Keep in mind that being granted a federal tax extension does not grant you a state tax extension in Massachusetts. Gross income in Massachusetts includes both earned income, such as salaries, wages, tips and commissions, and unearned income, such as interest, dividends and capital gains.

• There is a state payroll tax for the Paid Family and Medical Leave (PFML) program.
• We’ve built a platform to give everyone access to the tax and wealth-building tools typically reserved for wealthy individuals with a team of accountants and lawyers.
• Federal and state income taxes can significantly reduce the wealth your family keeps every year.
• In November 2022, Bay State voters approved an additional 4 percent tax on annual income above $1 million, beginning in tax year 2023.
• Massachusetts exemptions are $4,400 for single filers, $6,800 for head of household and $8,800 for married joint filers.
• The calculation of the annual tax rate involves the efforts of many local officials as well as the citizenry.

How to calculate income tax in Massachusetts?

Massachusetts has a flat personal income tax rate of 5% of federal adjusted gross income. As of last year, 2023, an additional 4% tax (sometimes called the Massachusetts Millionaires Tax, is imposed on income over $1 million. Married Filing Jointly is the filing type used by taxpayers who are legally married (including common law marriage) and file a combined joint income tax return rather than two individual income tax returns. It states that in Accounting For Architects any year, the real and personal property taxes imposed may not exceed 2.5% of the total full and fair cash value of all taxable property. A levy limit is the other of the two types of tax levy restrictions imposed by G.L. It states that the real and personal property taxes imposed by a city or town may only grow each year by 2.5% of the prior year’s levy limit, plus new growth and any overrides or exclusions.

The total penalty depends on income and only apply to individuals with incomes more than 150% of the federal poverty level. You can deduct any expenses that exceed $150; taxpayers who are married and filing jointly can deduct expenses above $150 for each person. The state of Massachusetts has a personal income flat tax rate of 5% for everyone who made over $8,000 massachusetts tax brackets in 2023, regardless of their filing or residency status. Massachusetts offers tax deductions and credits to reduce your tax liability, including a rent and commuter deduction and a tax credit for taking care of a child or other dependent. When you pay more taxes (i.e., withholding taxes or estimated taxes) than the amount of taxes determined to be due an overpayment may be generated on your account. An overpayment may also be generated if you are entitled to a refundable credit that exceeds the amount of tax due.

• Annual income above $1 million (adjusted annually for inflation) is taxed at 9 percent.A personal income tax exemption allows for a subtraction from gross income.
• Understand taxation criteria, types, rates, and compliance to avoid legal penalties.
• Other property tax exemptions are available in many Massachusetts cities and towns, so contact your local tax assessor for more information.
• People who are blind, seniors, surviving spouses and veterans, as well as anyone who claims the Bay State as their primary residence,  may qualify for local property tax exemptions.

Anyone who files a Massachusetts state tax return is given a personal exemption amount based on their tax filing status. Taxpayers may also be eligible for additional exemptions, such as those for having qualifying dependents or for having paid certain types of medical or dental costs throughout the tax year. A tax credit payroll allows taxpayers to reduce the amount of taxes they are required to pay.

Income Tax Rate By State

The graph below shows that in total for the 343 communities with certified FY2025 tax rates, tax levies increased from FY2024 to FY2025 by 5.1% ($1.1 billion) from $21.7 billion to $22.8 billion. 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. These include expanded tax credits designed to provide more relief to residents and a new way the state will calculate corporate taxes.