Massachusetts Tax Brackets for the Single Filing Type

For details on specific deductions available in Massachusetts, see the list of Massachusetts income tax deductions. Your filing status on your Massachusetts personal income tax can affect your exemptions and how much you’re taxed. Anyone who earned $8,000 or more in gross income in Massachusetts during the tax year is required to file a state tax return. That applies to residents, part-year residents, and nonresidents with Massachusetts-sourced income.

• 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.
• Many policies, such as minimum wage levels, tax brackets, and means-tested public benefit income thresholds, are denominated in nominal dollars, even though a dollar in one region may go much further than a dollar in another.
• Moreover, Massachusetts also has a standard deduction that is $4,400 for single filers, and $$8,800 for married filing jointly.
• Notably, Massachusetts has the highest maximum marginal tax bracket in the United States.
• As of 2023, an additional 4% tax (sometimes called the Massachusetts Millionaires Tax) is imposed on income over $1 million.
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How Massachusetts residency impacts tax filing

This $8,000 income threshold is per person, giving married couples the option to file jointly or separately. If you’re a nonresident with an annual Massachusetts gross income of more than either $8,000 or the prorated personal exemption, whichever is less, you must file a Massachusetts tax return. Moreover, Massachusetts also has a standard deduction that is $4,400 for single filers, and $$8,800 for married filing jointly. Complete and e-File your Massachusetts Income Tax Return on eFile.com along your Federal Tax Return. Find information on Massachusetts income brackets and rates, standard deductions, and tax forms by tax year.

• This tax is progressive, which means the tax rate you pay — the percentage of each additional dollar that goes to the government — increases as your income increases.
• As a taxpayer, you must make estimated payments if the expected tax due on your taxable income not subject to withholding is more than a certain amount.
• Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
• Residents who are 65 or older by Dec. 31, 2024, can receive a $700 exemption on top of the state’s personal exemptions.
• Perhaps office supplies, repairs on your office computers, building repairs, or even purchasing your workers’ suitable clothing for their job (e.g. a plumber should be wearing a boiler suit).
• The tax is applied to wages, salaries, and other compensation within certain thresholds, which are adjusted periodically.
• The historic maps appear as they were originally published early in the applicable tax year; they have not been updated for changes enacted in those years that were retroactively applicable as of the beginning of those tax years.

Massachusetts: Federal EITC(Earned Income Tax Credits) Rates and Thresholds in 2024

The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment. Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S. at all. 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. 252, enacted in March 2024, New Mexico made notable changes to its tax bracket structure, primarily affecting low- and middle-income households.

Income Tax Brackets, Rates, Income Ranges, and Estimated Taxes Due

That simplicity makes filing your Massachusetts state income tax return easier than in states with tiered tax brackets, where different income levels are taxed at varying rates. Certain short-term capital gains are taxed at a rate of 8.5% and long-term capital gains from the sale of collectibles are taxed at a rate of 12%. Massachusetts has a flat personal income tax rate of 5% of federal adjusted gross income. As of 2023, an additional 4% tax (sometimes called the Massachusetts Millionaires Tax) is imposed on income over $1 million.

After getting your Part A, Part B, and Part C income, adjust each category of income to calculate Part B, Part A and Part C adjusted gross income, and finally calculate Part B, Part A and Part C taxable income. Personal income tax deductions decrease your taxable income, which means you owe less taxes. Deductions are generally related to your expenses, but not always. The Federal Income trial balance Tax, by contrast, has different tax brackets for Single, Married Filing Jointly, and Head of Household taxpayers. Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.

Massachusetts Tax Tables – Tax Rates and Thresholds in Massachusetts

You pay through withholding and making estimated tax payments on any income not subject to withholding. You may also qualify for certain personal income tax credits, which can reduce the amount of tax you owe. Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide. Remember that Massachusetts may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Massachusetts income tax return. Thus, the individual would pay a total of $17,280 in Massachusetts state income taxes for 2025.

• Read more here and check out our Guided Planner tool, where we’ll point you toward the strategies that might apply to you.
• To use our Massachusetts Salary Tax Calculator, all you need to do is enter the necessary details and click on the “Calculate” button.
• An overpayment may also be generated if you are entitled to a refundable credit that exceeds the amount of tax due.
• Personal income tax deductions decrease your taxable income, which means you owe less taxes.
• Unlike other states, Massachusetts does not have a state standard deduction.

While they are little things that not many people think about, your business thrives on these tiny details and therefore you are able to have tax deductions on them. The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully Partnership Accounting compare the features offered by each package.

Fortunately, there are several strategies available to minimize these taxes. Read more here and check out our Guided Planner tool, where we’ll point you toward the strategies that might apply to you. You can also compare the quantitative returns and tax savings of these different strategies using our ordinary income tax savings calculator and customize it to your own situation. Here you can find how your Massachusetts is based on a flat tax rate.