Massachusetts Income Tax Calculator

mass state income tax

Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package. provides easy access to five of the most commonly used Massachusetts income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Massachusetts tax forms library or the ‘s tax forms page. If you, your spouse or your dependent attend a qualifying two- or four-year college to earn a degree, diploma or certificate, you may deduct any tuition costs that exceed 25% of your Massachusetts AGI. However, the amount of any scholarships, grants or financial aid that the student receives needs to be subtracted from the total tuition.

  • See IRS Publication 463 (Travel, Gift, and Car Expenses) for more information.
  • For deaths after that date, only estates worth more than $2,000,000 are subject to tax.Massachusetts doesn’t charge an inheritance tax on estates from deaths occurring after December 31, 1975.
  • The flat rate is scheduled to phase down to 4.7 percent in 2024, 4.4 percent in 2025, and 4 percent in 2026.
  • She’s even seen examples of people paying £16,000 upwards.
  • A financial advisor can help you understand how taxes fit into your overall financial goals.
  • However, certain capital gains are taxed at a rate of 8.5%.

If you didn’t owe any taxes and didn’t file by the deadline, an extension to October is automatically granted. North Carolina’s flat individual income tax rate decreased from 4.99 to 4.75 percent for 2023 as a result of SB 105, the 2021 Appropriations Act, which was enacted in November 2021. Future scheduled reductions enacted under this same law will ultimately bring the rate to 3.99 percent by 2027. Several states try to keep things simple by applying the same tax rate to most income.

Personal Income Tax

Beginning in 2023, an additional 4% tax is imposed on income over $1 million. Property taxes in Massachusetts are relatively high and the commonwealth has an estate tax as well. But sales taxes in Massachusetts are relatively low.

  • Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.
  • 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.
  • If you met certain criteria and paid 80% of your total tax bill before this date, a six-month extension to Oct. 15, 2024, was automatically provided.
  • Massachusetts has a flat income tax rate of 5%, but charges a 4% surtax on income over $1 million.
  • If you’re a Massachusetts resident or part-year resident and you report income to another state, a U.S. territory or a Canadian province, you may be entitled to a credit for the amount of income tax due to the other jurisdiction.
  • (set at $13,850 for single filers and $27,700 for joint filers in 2023) while suspending the personal exemption by reducing it to $0 through 2025.

The state also has a flat statewide sales tax rate of 6.25%. The state’s income tax rate is only one of a handful of states that levy a flat rate. For tax year 2023, people who filed a Massachusetts tax return saw the entirety of their mass state income tax taxable income charged at a flat 5% rate. An additional 4% tax on 2023 income over $1 million was also levied, making the highest tax rate in the state 9%. See IRS Publication 463 (Travel, Gift, and Car Expenses) for more information.

What’s the deadline for filing Massachusetts state income taxes?

Representatives tacked on less spending via amendments than they did to last year’s budget, and a shade less than the $108.5 million average between fiscal years 2022 and 2024 as calculated by the Massachusetts Taxpayers Foundation. House Democrats were united in their support of the bill while there were divisions within the 25-member House Republican caucus, where four members voted against the budget. The budget does not call for tax increases, seeks to push overall state spending up by about 3.3 percent, or $2 billion, and aims to drive up the state rainy day fund balance to nearly $9 billion. The biggest impact of rising interest rates has been in southern England where house prices are higher.

Long-term capital gains from investments are taxed at 5 percent in Massachusetts, and short-term capital gains are taxed at 8.5 percent. Long term gains from the sale or exchange of collectibles is taxed at 12 percent. A long-term capital gain is a profit from selling an asset you’ve owned for more than one year. A short-term capital gain is a profit from the sale of an asset you’ve owned for one year or less.

Standard Deduction

Check the Massachusetts Form 1-NR/PY to learn more.AARP’s Retirement Calculator can help you determine if you are saving enough to retire when — and how — you want. Massachusetts has a flat tax of 5.13% on most types of income. Seven states have a flat income tax, and of those seven Massachusetts has the highest state income tax rate. While the tax rate is set explicitly by the Massachusetts legislature, the Massachusetts personal exemption is indexed to inflation and changes every year. That rate applies equally to all taxable income up to $1 million.

  • The tax is on the purchase or use of “tangible personal property.” This includes nearly any purchasable good, with some exceptions.
  • Personal property such as cars and boats are typically taxed locally through excise taxes.
  • 1 to convert the individual income tax structure to a flat rate of 5.8 percent, down from a top marginal rate of 6 percent.
  • Iowa’s graduated-rate tax structure is scheduled to shift to a flat taxAn income tax is referred to as a “flat tax” when all taxable income is subject to the same tax rate, regardless of income level or assets.
  • Kansas, for example, is one of several states imposing a three-bracket income tax system.
  • Generally, you must include the jury duty pay reported on Form 1099 in both federal and Massachusetts gross income as “other income” on your tax returns.

The Zoopla research looked at the average home buyer taking out a 70% loan-to-value mortgage. In a bid to tackle inflation, the Bank of England has raised the base rate from 0.1% in December 2021 to a 16-year high of 5.25% now. But the universal uptick in mortgage costs has been less pronounced in other parts of the UK, with the North East seeing a £2,350 increase. Annual mortgage repayments have increased by up to 70% since 2021, according to new data from Zoopla. Tracy says there’s currently a surge in people wanting to buy “mid century” furniture, which is dated to roughly 1945 to 1965 and typically uses clean lines and has a timeless feel.

These state income tax rates apply to income earned in 2024, which is reported on tax returns filed in 2025. These state income tax rates apply to income earned in 2023, which is reported on tax returns filed in 2024. For states with progressive tax systems, note that the dollar amounts in the income brackets apply to single filers; in many states, the income brackets double for those married filing jointly. And, as is the case for federal returns, the amount you’ll pay to your state is also a function of your filing status, whether you have dependents, and whether you qualify for tax deductions and credits. State income tax rates receive relatively little attention compared with federal income taxes, but they can still put a large dent in your wallet. How large depends on the amount you earn, as well as where you live and work.

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