Estates valued under $2 million are not subject to the estate tax. The Personal Exemption, which is supported by the Massachusetts income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. The standard deduction, which Massachusetts does not have, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction. Qualifying deductions might include an itemized deduction, the Massachusetts standard deduction, exemptions for dependants, business expenses, etc.

Income excluded from federal but included in Massachusetts

If you have any suggestions or comments on how to improve these massachusetts income tax forms, contact the Forms Manager at These forms are subject to change only by federal or state legislative action. Senator Warren introduced the first amendment in the vote series, Amendment #734 to oppose tax cuts for Americans making over $10 million annually. Residents – Include gross income from all sources, both in and out of Massachusetts.

Am I a resident for Massachusetts state income tax purposes?

Massachusetts requires most adults 18 and over with access to affordable health insurance to ob­tain it. In 2024, individuals must be enrolled in health insurance policies that meet minimum creditable coverage standards defined in regula­tions adopted by the Commonwealth Health In­surance Connector Authority (Health Connector). Individuals who are deemed able to afford health insurance but fail to obtain it are generally subject to penalties in Massachusetts for each month of noncompliance in the tax year. Property tax rates are based on home values and vary by location.

Personal Income and Corporate Excise Tax Law Changes

The distinct components of FICA, namely Social Security law firm chart of accounts and Medicare, each have specific rates and caps that determine the amount of tax levied. As such, FICA represents a critical element of the United States’ approach to social welfare, providing foundational financial security and healthcare benefits that many Americans rely on. Personal income tax exemptions directly reduce how much tax you owe. Exemptions are generally related to your filing status and number of dependents you report on your tax return, but not always.

• For more up-to-date and detailed information and to view all of the public written statements ref­erenced, go to the 2024 Form 1 and Form 1-NR/PY Instructions.
• Understanding the latest EITC rates and thresholds is crucial for taxpayers who wish to maximize their potential credit and accurately plan their finances.
• If you need to pay $5,000 or more to qualify for an extension, you are required pay electronically.
• View more detailed information on filing status to see what this means for you.
• If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Massachusetts has two marginal tax brackets, ranging from 5% (the lowest Massachusetts tax bracket) to 9% (the highest Massachusetts tax bracket).

Most food sold in grocery stores is exempt from sales tax entirely. Clothing purchases, including shoes, jackets and even costumes, are exempt up to $175. A product that costs more than $175 is taxable above that amount, so a $200 pair of shoes would be taxed at 6.25% on the $25 above the exemption limit. Other exempt items include periodicals, admissions tickets (i.e. to movies or sporting events), professional or personal services and most health care products. Residents of Massachusetts are also adjusting entries subject to a penalty if they do not have health insurance coverage, which is paid through their tax return.

for Filing Extensions

• Those earning less than this amount do not need to file a return, but they can still file a return to claim refundable tax credits.
• The first question is whether there is anyone who is so rich that the Republicans think they don’t need a tax giveaway.
• This page contains important information on the time limitations for claiming a refund and on the calculation of interest.
• Estates seeking an extension of time to file and pay the estate tax must still request approval from DOR by filing Form M-4768.
• You can learn more about how the Massachusetts income tax compares to other states’ income taxes by visiting our map of income taxes by state.

There is a three-month grace period for health coverage lapses, after which the penalty accumulates on a monthly basis, up to about $175 per month. The total penalty depends on income and only apply to individuals with incomes more than 150% of the federal poverty level. The 2025 tax rates and thresholds for both the Massachusetts State Tax Tables and Federal Tax Tables are comprehensively integrated into the Massachusetts Tax Calculator for 2025. This tool is freely available and is designed to help you accurately estimate your 2026 tax return. The EITC rates and thresholds are adjusted annually to reflect changes in the economy and cost of living.

• Gross income in Massachusetts includes both earned income, such as salaries, wages, tips and commissions, and unearned income, such as interest, dividends and capital gains.
• The federal standard deduction for a Head of Household Filer in 2025 is $ 22,500.00.
• To qualify for the credit, a taxpayer must be age 65 or older and must occupy the property as his or her prin­cipal residence.
• The following tax tables are supported by iCalculator™ US as part of the suite of free tax tools available in the US Tax HUB we provide for Massachusetts.
• The Tax tables below include the tax rates, thresholds and allowances included in the Massachusetts Tax Calculator 2024.
• Qualifying deductions might include an itemized deduction, the Massachusetts standard deduction, exemptions for dependants, business expenses, etc.

Massachusetts Gross Income

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). 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 compare the features offered by each package. Notably, Massachusetts has the highest maximum marginal tax bracket in the United States.

• A lawmaker on Beacon Hill wants to raise the state’s income tax on income earned under $1 million.
• Senator Warren introduced the first amendment in the vote series, Amendment #734 to oppose tax cuts for Americans making over $10 million annually.
• You can choose another state to calculate both state and federal income tax here.
• Learn how to file your income tax return, make a payment, check the status of your refund, and more.
• The state’s income tax rate is only one of a handful of states that levy a flat rate.

If you need information about the most common differences between the federal and Massachusetts state tax treatment of personal income, please visit our overview page. Other important Massachusetts state tax return information and other related features (e.g. tax extension, amendment, etc.) are listed here as well. Gross income in Massachusetts includes both earned income, such as salaries, wages, tips and commissions, and unearned income, such as interest, dividends and capital gains. Property taxes in Massachusetts are one of the most significant sources of revenue for local governments. In some counties, median property taxes paid exceed $6,000 per year. The median property tax bill in the state is $5,584 – one of the highest in the country.