Massachusetts Tax Rates, Standard Deductions, Forms

Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. All deposit accounts through Pathward are FDIC insured.

Residents of Massachusetts are also subject to a penalty if they do not have health insurance coverage, which is paid through their tax return. There is a three-month grace period for health coverage lapses, after which the penalty accumulates on a monthly basis, up to about $119 per month. Before the official 2023 Massachusetts income tax brackets are released, the brackets used on this page are an estimate based on the previous year’s brackets. These numbers are subject to change if new Massachusetts tax tables are released.

FY2021 Tax Rates

The tax is on the purchase or use of “tangible personal property.” This includes nearly any purchasable good, with some exceptions. Massachusetts has a flat income tax rate of 5.00%, as well as 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.

Please check with your employer or benefits provider as they may not offer direct deposit or partial direct deposit. Faster access to funds is based on comparison of traditional banking policies for check deposits versus electronic direct deposit. We’re here to answer common – and uncommon – questions from people like you.

Your 2022 Federal Income Tax Comparison

Most state programs available in January; software release dates vary by state. State e-File for business returns only available in CA, CT, MI, NY, VA, WI. These excise taxes are paid by the vendor, but some or all may be included in the retail price. Alcoholic beverages are exempt from sales tax, unless they’re sold as part of a meal. Input the total of your itemized deductions, such as mortgage interest, charitable contributions, medical and dental expenses, and state taxes.

• Some low-income Massachusetts residents are not required to pay state income taxes .
• An overpayment claimed on a return may be applied as a credit for your next year’s estimated tax or you may request that it be refunded to you.
• This course is not open to any persons who are currently employed by or seeking employment with any professional tax preparation company or organization other than H&R Block.
• Once the extension is granted, the 6-month extension starts at the filing due date of the original return.
• Line balance must be paid down to zero by February 15 each year.
• The most significant taxes in Massachusetts are the sales and income taxes, both of which consist of a flat rate paid by residents statewide.

Because it’s a cloud-based tool, rate updates are pushed to you automatically, based on the latest jurisdiction rules and regulations. Or, when done editing or signing, create a free DocuClix account – click the green Sign Up button – and store your PDF files securely. Or, click the blue Download/Share button to either download or share the PDF via DocuX. If you are using Internet Explorer, you may need to select to ‘Allow Blocked Content’ to view this calculator. Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments.

Property Taxes and Property Tax Rates

If an extension payment is required to reach the 80% threshold, you canpay electronically. If you need to pay $5,000 or more to qualify for an extension, you are requiredpay electronically. massachusetts income tax If you are required to file Form M-4768 electronically, register on MassTaxConnect to file your extension. This is not an offer to buy or sell any security or interest.

• This is different from other states, where your income tax percentage is based on upon filing status and income.
• States that collect a personal income tax allow individuals to claim personal exemptions on income taxes each year.
• This is per person , so if your spouse turned 65 by Jan. 1, they can also claim the exemption.
• It does not provide for reimbursement of any taxes, penalties, or interest imposed by taxing authorities and does not include legal representation.

You can deduct any expenses that exceed $150 (married filing jointly taxpayers can deduct expenses above $150 per person). The total amount can’t exceed $750 per person. If your principal residence is in Massachusetts and you paid rent to a landlord in the past year, you can deduct 50% of the rent paid, up to $3,000 (up to $1,500 for married filing separate filers). Unlike the 6.25% sales tax, which is collected by sellers, use tax is generally paid directly to the state by the purchaser. Use tax is a 6.25% tax paid on out-of-state or out-of-country purchases that are used, stored or consumed in Massachusetts and on which no Massachusetts sales tax (or less than 6.25%) was paid.

Massachusetts Estate Tax Rates

Condo owners are also entitled to a credit for repairs done to common areas in addition to the work done in their individual units. This credit isn’t refundable, but if the credit is more than you owe, you can carry the excess forward for up to three years. If a portion of your expenses was reimbursed by your employer, the total amount paid must be reduced by the reimbursement amount. If you commute to work, you can deduct certain transportation costs such as tolls paid through an E-Z Pass MA account and the costs of weekly or monthly passes to Massachusetts’ public transit system.