Massachusetts State Income Tax: Rates and Who Pays in 2023-2024

mass.state income tax

If you split the rent with someone else, each taxpayer is entitled to the deduction for the portion of the rent that they pay. Likewise, if your rent is paid by a third party, such as a parent, you aren’t eligible for this deduction. If your principal residence is in Massachusetts and you paid rent to a landlord in the past year, you can deduct 50% of the rent paid, up to $4,000 (up to $2,000 for married people filing separately). Part-year residents refer to individuals who either moved to the state and became residents or moved out of the state and ended their residencies within the tax year. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.

mass.state income tax

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If married and filing jointly, you and your spouse must both sign the return. When you owe taxes and are paying by check, don’t forget to sign the check. You may be able to apply for an extension if you’re not ready to file your Massachusetts income tax by the due date. To learn more, go to File an extension for filing Massachusetts Personal Income or Fiduciary tax.

2 – Massachusetts Personal Exemptions

Below are some examples of where you can find payment options. The first required quarterly return will cover the period from October 1, 2019 to December 31, 2019 and must be filed on or before January 31, 2020. All subsequent return filings will be due on or before the last day of the month following a calendar quarter’s accounting services for startups close. Employers, other business entities and self-employed individuals electing PFML coverage are required to file Quarterly Returns through MassTaxConnect. If you filed on paper last year, now is a good time to make the change to e-file. Before filing, you can learn more about the advantages of filing online.

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Collections of $6.324 billion last month exceeded the Healey administration’s monthly benchmark of $5.291 billion by $1.034 billion or 19.5 %. But officials said much of that overage came in the form of capital gains tax revenue and income surtax revenue, money that is to be set aside for specifically mandated purposes. That money is not available to support general budgeted spending but it could eventually help the state sock away more savings or invest in transportation and education. Income and Fiduciary Vouchers – these estimated tax payment vouchers provide a means for paying any taxes due on income which is not subject to withholding. This is to ensure that taxpayers are able to meet the statutory requirement that taxes due are paid periodically as income is received during the year. Generally, you must make estimated tax payments if you expect to owe more than $400 in taxes on income not subject to withholding.

mass.state income tax

Massachusetts collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Unlike the Federal Income Tax, Massachusetts’ state income tax does not provide couples filing jointly with expanded income tax brackets. Most refunds are claimed on an original return and will be issued automatically by the Department. For e-filed returns the turnaround time is about 6 weeks; but for paper returns it could take up to 10 weeks.

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mass.state income tax

Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. Up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple. Money withdrawn from most private pensions and retirement accounts, including 401(k)s and traditional IRAs, is considered taxable income. Check the Massachusetts Form 1-NR/PY to learn more.AARP’s Retirement Calculator can help you determine if you are saving enough to retire when — and how — you want. You can save time and money by electronically filing your Massachusetts income tax directly with the . Benefits of e-Filing your Massachusetts tax return include instant submission, error checking, and faster refund response times.

Massachusetts State Income Tax Tables in 2023

Massachusetts has some of the highest cigarette taxes in the nation. The tax is $3.51 per pack of 20, which puts the average price of cigarettes in Massachusetts at around $9 per pack. A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

  • Generally, you need to pay at least 80% of your annual income tax liability before you file your return for the year.
  • Instead, state taxpayers can determine if they qualify for certain tax exemptions to reduce the amount of tax owed.
  • Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below.
  • Personal income tax deductions decrease your taxable income, which means you owe less taxes.
  • 1 to convert the individual income tax structure to a flat rate of 5.8 percent, down from a top marginal rate of 6 percent.

In New Hampshire, for example, regular income is generally not subject to state tax, but a flat tax rate applies to dividends and interest income. And some states apply their tax rates to taxable income, while others use adjusted gross income. And because the price of many tax software packages includes preparation and filing for only one state, filing multiple state income tax returns often means paying extra.

mass.state income tax

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. provides easy access to five of the most commonly used Massachusetts income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Massachusetts tax forms library or the ‘s tax forms page.

For most taxpayers, Massachusetts has a flat income tax of 5 percent. In November 2022, Bay State voters approved an additional 4 percent tax on annual income above $1 million, beginning in tax year 2023. Annual income above $1 million (adjusted annually for inflation) is taxed at 9 percent.A personal income tax exemption allows for a subtraction from gross income. Boston Harbor may be the site of the most famous tax protest in history, but today Bay Staters pay taxes on a lot more than tea. The most significant taxes in Massachusetts are the sales and income taxes, both of which consist of a flat rate paid by residents statewide.

The state has started its fiscal year without an annual budget in place for 13 years running, and entering last year, was the only state that was late in completing its annual spending plan every single year since 2017. Before an official payment plan can be set up, you will need to have received a Notice of Assessment (NOA). You can make payments towards your liability prior to the billing, but the NOA must be issued before setting up the terms of the plan.