Massachusetts state income tax rates
Massachusetts is one of 14 U.S. states that levies a flat tax, meaning all income is subject to the same tax rate, which in Massachusetts is 5 percent. That rate applies to wages and other sources of income, but some capital gains income faces substantially higher tax rates.
Massachusetts personal income tax rates for 2024
The state’s 5 percent flat tax applies both to earned income — including salaries, wages and commissions — as well as unearned income — including interest, dividends and some capital gains.
However, short-term capital gains from the sale of capital assets are taxed at an 8.5 percent rate, and long-term capital gains from the sale or exchange of collectibles are taxed at a 12 percent rate.
Also, taxpayers with taxable income of more than $1,053,750 in 2024 also must pay a 4 percent surtax. The surtax is applied to income above the $1,053,750 threshold. See this Massachusetts Revenue Department page for more.
Who has to file Massachusetts state taxes?
Massachusetts full-year or part-year residents are required to file a state tax return if their Massachusetts gross income is more than $8,000.
Some nonresidents must also file if they had income from a source based in Massachusetts. Learn more about the state’s nonresident income taxes.
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.
Tax returns are due on April 15 unless that day falls on a weekend or holiday, in which case it would be the next business day.
Is there a personal exemption or standard deduction in Massachusetts?
Massachusetts has a personal exemption for income taxes, but no standard deduction.
Massachusetts exemption amounts for 2024
| Filing status | Exemption amount |
|---|---|
| Single | $4,400 |
| Head of household | $6,800 |
| Married filing jointly | $8,800 |
| Married filing separately | $4,400 |
There are other exemptions available to Massachusetts taxpayers, including exemptions for:
- each qualifying dependent ($1,000 per dependent)
- fees paid for adopting a child
- taxpayers who are 65 or older
- taxpayers who are legally blind
Certain low- and moderate-income Massachusetts taxpayers are eligible for the state’s refundable earned income tax credit, or EITC.
Taxpayers can deduct some commuting costs, including payments for tolls and the cost of weekly or monthly passes for Massachusetts Bay Transit Authority bus, commuter rail or commuter boat. The total deduction amount cannot exceed $750 per individual.
Authority bus, commuter rail or commuter boat. The total deduction amount cannot exceed $750 per individual.
Massachusetts sales tax rate
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.
Other things to know about Massachusetts taxes
- Property taxes are handled by city and town assessors and collected in the jurisdiction where the property is located. The effective (average) property tax rate in Massachusetts is 1.04 percent, according to the Tax Foundation. There are several property tax exemptions and deferrals available for certain taxpayers and types of property.
- Massachusetts does not have an inheritance tax, but does collect an estate tax.
- The corporate tax rate is 8 percent for most companies but there are different rates for different types of companies.
- The gasoline tax is 24 cents per gallon.
- The cigarette tax is $3.51 per 20 pack.
- The state marijuana tax is 10.75 percent, with a 3 percent additional tax option for cities and towns. (This is in addition to the 6.25 percent sales tax.)