Massachusetts State Taxes
Quick Tax Facts
- Income Tax: 5%
- State Sales Tax: 6.25%
- Median Property Tax: $7,057
Massachusetts was recently named one of the best places to live in the United States. With its top-notch schools and healthcare, as well as low crime rates, it’s definitely family-friendly. On the tax side of things, however, it’s not as favorable. Although there is a flat income tax rate, it can result in some hefty tax bills for those earning more than $30,000. Property tax bills are also some of the largest in the country.
Massachusetts Income Tax
Massachusetts has a flat income tax rate of 5%. Starting in 2023, however, those with incomes above $1 million will pay an additional 4%.
Who Must File?
Anyone with $8,000 or more in Massachusetts gross income must file. This includes part-year and non-residents. There is no combined filing requirement for joint returns. A married resident who meets the requirement may file as an individual or jointly, regardless of their spouse’s filing requirement. Starting in 2023, those with incomes above $1 million will pay an additional 4%.
Full-year residents should file using Form 1, Resident Income Tax Return. Part-year and non-residents should use Form 1-NR/PY, Massachusetts Nonresident or Part-Year Resident Income Tax Return.
Massachusetts Sales Tax
Massachusetts has a state sales tax rate of 6.25% and does not levy sales taxes at the local level.
Massachusetts Property Taxes
Massachusetts property taxes are some of the highest in the nation even though its property tax rate falls around 18th overall. Unfortunately, recent increases in home values and inflated municipal budgets have led to substantial increases in residents’ property tax bills.
The median property tax bill in Massachusetts (2023) is approximately $7,057. That is based on an average home value (statewide) of $600,948. Weston has the highest average property tax bill at $23,893. The lowest amount is $786 in Hancock.
Massachusetts Tax Holidays
Massachusetts hosts an annual Sales Tax Holiday Weekend during which purchases (up to $2500) of items for personal use are tax-exempt. This two-day tax holiday is typically held in August. For additional information and a list of eligible items, please refer to the FAQs on Mass.gov.
Massachusetts Tax Resources
If you need assistance preparing your Massachusetts state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Massachusetts Department of Revenue website for additional resources.