Massachusetts individual income tax
Massachusetts has an individual income tax that applies to all residents and nonresidents of the state. The tax is calculated based on an individual's federal-adjusted gross income and has a flat rate tax of 5%.
April 18
Return due in 2023
5%
Flat tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit MassTaxConnect
What is Massachusetts income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Massachusetts on individuals that meet the taxable criteria.
Taxable incomes
Massachusetts taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Massachusetts has a flat rate tax of 5%.
Standard deduction
Massachusetts doesn't have standard deduction.
Personal exemption
Massachusetts exemptions are $4,400 for single filers, $6,800 for head of household and $8,800 for married joint filers.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Massachusetts taxable income | Tax rate |
|---|---|
| Flat tax rate | 5% |
Individual income tax
The State of Massachusetts requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Massachusetts
Types of taxable incomes
The income types on which tax is levied are:
In Massachusetts, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
Certain capital gains are taxed at 12%.
File return
To file a tax return in Massachusetts, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
All individuals with a gross income of $8,000 should file taxes in Massachusetts.
Massachusetts provides an automatic 6-months extension in filing taxes, if 80% of the taxes have already been paid before tax due date.
Due
quarterly or annually
Pay taxes
Taxes in Massachusetts are due by 18 April, 2023. Go to the official Massachusetts Department of Revenue website.
Atleast 80% of taxes must be paid before filing.
Estimated taxes must be paid quarterly if tax liability is more than $400 without withholding, or your income is not withheld.
Estimated taxes are to be made quarterly in instalments by the 15th of April, June, September, and January.
Type of tax
flat tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in Massachusetts refers to an individual's permanent home or place of residence in the state.
Massachusetts resident
A Massachusetts resident is someone who is domiciled in Massachusetts, or who maintains a permanent place of residence in the state for more than 183 days in a year.
You are required to pay tax on all the income, regardless of where it's sourced, if you are a resident.
Massachusetts part-year resident
A Massachusetts Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of Massachusetts is subject to state taxes.
Income earned from Massachusetts sources are also taxable.
Massachusetts non-resident
A Massachusetts Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from Massachusetts sources are required to pay Massachusetts taxes. This includes income from Massachusetts properties and personal services performed in the state.
Frequently asked questions
Business entities in Massachusetts
There are several business entities in Massachusetts
Massachusetts LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time