Massachusetts Real Estate - Massachusetts State Tax Table

Massachusetts state taxes
Income
tax rates
Income brackets Personal exemption Federal Tax deduction State sales tax
High Low High Single Married Child
5.3%
Same 1 (flat rate) $3,300 $6,600 $1,000 None 5%
* Taxable income in excess of $24,000 is taxed at the 5.3 percent rate. The tax table for income ranges below that can be accessed by clicking here.

Personal income tax

  • A Massachusetts full- or part-year resident is required to a file tax return with the state if his or her state gross income is in excess of $8,000.
  • Form 1, resident tax return, is due by April 15. Forms may be downloaded here.
  • Taxpayers who file a Massachusetts tax return are entitled to a personal exemption regardless of whether they may claim one on their federal return. On Jan. 1, 2002, the exemption amounts were reduced. Depending on economic conditions, they may be increased in future tax years.
  • Massachusetts taxpayers can claim a deduction for certain charitable contributions. Generally, the state deduction follows federal charitable deductibility guidelines. However, while taxpayers must itemize deductions in order to claim the federal charitable deduction, Massachusetts filers don't have to itemize take the state deduction. Claim this deduction on Schedule Y.
  • Sales Tax

  • Massachusetts imposes a 5 percent sales tax on retail sales of tangible personal property in Massachusetts by any vendor.
  • Personal and real property taxes

  • All real and tangible personal property located within the Commonwealth of Massachusetts is taxable unless specifically exempted by statute.
  • The administration of the assessment and collection of all real and tangible personal property taxes in the Commonwealth of Massachusetts is handled by the city and town assessor and collected in the jurisdiction where the property is located.
  • Lower rates among jurisdictions, however, don't necessarily mean lower tax bills; that is determined by the assessed value of property (based on 100 percent of the fair market value) within a municipality.
  • Property is taxed according to its class: residential, open space, commercial, industrial, personal property.
  • All real and tangible personal property taxes are due in two (2) installments. The first half of the tax is due by Nov. 1 of the year of assessment or within 30 days from the mailing date of the tax bill, whichever is later. The second half of the tax is due by May 1 of the year following the assessment year.
  • There are several property tax exemptions and deferrals available for certain veterans and their families, blind taxpayers and the surviving spouse or children of a police officer or firefighter killed in the line of duty.
  • Intagible personal property taxes

  • Massachusetts imposes a 5.3 percent tax on any gains from the sale or exchange of capital assets held for more than one year; i.e., long-term capital gains. This applies to transactions completed on, or after, May 1, 2002. There is an exception for collectibles. The state's long-term gains rate on collectibles is 12 percent.

    The state also collects a 12 percent tax on interest (except interest from Massachusetts banks), dividends, gains from the sale or exchange of capital assets held for one year or less (short-term capital gains).

    Taxpayers can use up to $2,000 in net capital losses (short- and long-term) as a deduction against interest and dividend income. The deduction can reduce interest/dividend income to zero, but not below that amount.

    Massachusetts taxpayers also can exclude from taxable state income up to $250,000 ($500,000 for joint filers) they received as gain on the sale of their personal residence as long as the sale and gain meet the conditions established under the federal tax code.
  • Inheritance and estate taxes

  • There is no inheritance tax and limited Massachusetts estate tax related to federal estate tax collection.
  • New residents can obtain information on state tax rates from the Massachusetts Department of Revenue's Web site.

    Massachusetts Real Estate Area Map

    Click an area on the map of the state of Massachusetts to view more information about the Real Estate in that area.