Massachusetts State Tax Guide

Massachusetts tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.
qh88 Liên kết đăng nhập
(Image credit: Getty Images)

Massachusetts State Tax: Overview

Massachusetts has a flat personal income tax rate of 5% of federal adjusted gross income. 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.

Massachusetts income taxes

Massachusetts has a flat rate of 5% of federal adjusted gross income. (Note: On November 8, 2022, Massachusetts voters approved a constitutional amendment to add an additional 4% tax on taxable income over $1 million starting in 2023.)
  • Social Security benefits are not taxed by Massachusetts.
  • Income from the contributory federal government, Massachusetts state, and Massachusetts local government retirement plans is exempt. Income from noncontributory military retirement plans is also exempt. In addition, a deduction is available for contributory pension income from other state or local governments that do not tax Massachusetts public pensions.
  • Railroad Retirement benefits are also exempt.

Massachusetts sales tax

Massachusetts has a 6.25% state-level sales tax. There are no local sales taxes.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.
qh88 Liên kết đăng nhập

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of expert advice - straight to your e-mail.
  • Groceries: Exempt
  • Clothing: Exempt if under $175
  • Motor Vehicles: Taxable
  • Prescription Drugs: Exempt

How much are property taxes in Massachusetts?

In Massachusetts, average property taxes are paid about 1.14% of assessed home value, according to the .

Massachusetts Property Tax Breaks for Retirees

Massachusetts homeowners and renters who are 65 or older may qualify to claim a refundable on their state income taxes to offset real estate taxes or rent paid during the year on their principal home.

Massachusetts gas (motor fuel) taxes

Gasoline: 24 cents per gallon.

Diesel: 24 cents per gallon.

Massachusetts taxes on alcohol and tobacco

Cigarettes and little cigars: $3.51 per pack of 20

Snuff: 210% of the wholesale price

Chewing tobacco: 210% of the wholesale price

Other tobacco products: 40% of the wholesale price

Vapor products: 75% of the wholesale price

Source: Massachusetts Department of Revenue

Beer: An excise tax of $0.11 per gallon in 2022.

Wine: $0.55 per gallon

Liquor: $4.05 per gallon

Alcohol sales are exempt from sales tax.

Source:

Marijuana: 10.75% excise tax; up to 3% local option taxes may also be due. the 6.25% Massachusetts sales tax also applies. There is in Massachusetts.

Massachusetts estate and inheritance Taxes

  • Estates valued at more than $2 million may be subject to a Massachusetts estate tax. Tax rates range from 0.8% to 16%. 
  • There is an unlimited marital deduction for property left to a surviving spouse and an unlimited charitable deduction for property left to a qualified charity.

Related Content

qh88 Liên kết đăng nhập
Senior Tax Editor, 49ermike.com
As the senior tax editor at 49ermike.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist. 
With contributions from