Massachusetts Property Tax Rates 2023 Town by Town List with Calculator

Starting in 2023, anyone making over $1,000,000 will pay an additional 4.00% of state tax, bringing the total income tax rate up to 9.00%. While sales tax refunds are available for goods that are purchased in Massachusetts and exported, Massachusetts excise taxes paid on goods are generally non-refundable. Incentives may exist allowing certain state of federal excise taxes to be refunded on goods bought for specific uses, but such incentives change frequently.

Massachusetts Income Tax Calculator

In addition, every paycheck will be subject to a Paid Family and Medical Leave (PFML) payroll tax. To optimize your tax situation, consider contributing to unearned revenue tax-advantaged accounts like 401(k) plans and HSAs. These pre-tax contributions lower your taxable income, potentially saving on taxes and bolstering your financial future. The Massachusetts excise tax on liquor is $4.05 per gallon, lower then 68% of the other 50 states.

Massachusetts State Taxes

You can view the sales tax rates for various cities in Massachusetts here. While Massachusetts has a flat tax structure, states like California and New York impose higher top marginal rates. However, Massachusetts’ millionaire tax makes it less attractive for high earners compared to states like Florida or Texas, which have no income tax. Businesses and high-net-worth individuals often consider these tax implications when deciding where to establish residency. We estimate the OBBBA will reduce federal taxes on average for individual taxpayers in every state. Across all individual tax filers throughout the US, the average tax cut per taxpayer will be over $3,700 in 2026.

Who Is Affected by the 4% Surtax?

For the tax year 2026, these adjustments ensure that the credit remains aligned with the current economic conditions, providing targeted support to eligible taxpayers. Understanding the latest EITC rates and thresholds is crucial for taxpayers who wish to maximize their potential credit and accurately plan their finances. The EITC can have a significant impact on a family’s annual budget, offering relief and financial stability to ma income tax rate millions of Americans each year including those in Massachusetts. The 2023 tax rates and thresholds for both the Massachusetts State Tax Tables and Federal Tax Tables are comprehensively integrated into the Massachusetts Tax Calculator for 2023. This tool is freely available and is designed to help you accurately estimate your 2024 tax return.

The IRS has determined that the 2024 inflation-adjusted monthly exclusion amounts are $315 for employer-provided parking and $315 for combined transit pass and commuter highway vehicle transportation benefits. In 2023, the average property tax bill for a single-family home was $7,059, according to the Secretary of the Commonwealth’s Office. The lowest average single-family tax bill in the Bay State is in Hancock with a bill of $1,027 based on 2025 property tax data. According to the Division of Local Services, “property taxes are the largest funding source for teachers, police, firefighters, public works and many other local resources and services” for the communities. If you are a Massachusetts business owner, you can learn more about how to collect and file your Massachusetts sales tax return at the 2025 Massachusetts Sales Tax Handbook .

If you missed this deadline, you may be allowed a six-month extension if you paid at least 80% of the total amount of tax owed by the April due date. If you don’t owe any taxes and didn’t file by the deadline, an extension to October is automatically granted. A city or town may also charge a local sales tax on the sales of restaurant meals.Visit TIR 09-13. As a property owner, you have the right to appeal the property tax amount you are charged and request a reassessment if you believe that the value determined by the Middlesex County Tax Assessor’s office is incorrect. To appeal the Middlesex County property tax, you must contact the Middlesex County Tax Assessor’s Office. Upon receiving your paycheck, you’ll first notice your gross pay—the earnings you’ve made before any deductions.

What is the Massachusetts corporate income tax?

• Massachusetts property real estate taxes are calculated by multiplying the property’s value by the location’s real estate tax.
• Property owners undertaking lead paint removal may qualify for the Lead Paint Removal Credit, up to $3,000 per dwelling unit for 2024, which helps offset inspection and deleading costs.
• The Tax tables below include the tax rates, thresholds and allowances included in the Massachusetts Tax Calculator 2026.
• We believe everyone should be able to make financial decisions with confidence.
• Whenever you make a purchase at a licensed Massachusetts retailer, your sales tax will be automatically calculated and added to your bill.
• As tax policies evolve, staying updated on potential legislative changes is crucial for effective financial planning.

Veterans Administration disability compensation is also not taxed in the state.Spouses of military personnel may be eligible for exemptions. The state extension deadline follows the federal extension deadline set by the IRS, which is Oct. 15, 2025. Keep in mind that being granted a federal tax extension does not grant you a state tax extension in Massachusetts. June Sham is a lead writer on NerdWallet’s investing and taxes team covering retirement and personal finance.

Although Massachusetts does not conform to federal estate tax exemption levels, understanding federal rules is essential for comprehensive planning. The federal estate tax exemption is significantly higher and includes a portability provision, allowing a surviving spouse to use the unused portion of the deceased spouse’s exemption. While Massachusetts lacks a similar provision, federal portability can still influence state-specific strategies.

• For all of the tax forms we provide, visit our Massachusetts tax forms library or the 's tax forms page.
• However, Massachusetts’ millionaire tax makes it less attractive for high earners compared to states like Florida or Texas, which have no income tax.
• Massachusetts imposes an income tax on its residents and non-residents earning income within the state.
• These include debts owed by the decedent, funeral expenses, and administrative costs.
• The Massachusetts excise tax on liquor is $4.05 per gallon, lower then 68% of the other 50 states.

Edgartown has the lowest property tax rate in Massachusetts with a tax rate of 2.52 while Longmeadow has the highest property tax rate in Massachusetts with a tax rate of 22.92. Edgartown has the lowest property tax rate in Massachusetts with a property Debt to Asset Ratio tax rate of 2.52. We help you find deductions and credits you qualify for in Massachusetts, and keep more of your hard-earned money. Anyone who earned $8,000 or more in gross income in Massachusetts during the tax year is required to file a state tax return.

Part-year residents are taxed on all income earned while a Massachusetts resident and on Massachusetts-source income earned during their non-resident period. Filing your Massachusetts income tax return is usually done online or by mail. You can find the latest version and instructions on the Massachusetts Department of Revenue website.