Key Tax Facts: Massachusetts
- Flat 5% rate, plus 4% surtax on income above $1 million (Millionaires Tax)
- Long-term capital gains taxed at same 5% rate (not 12%)
- Social Security is exempt; most pension income is not
- Interest and dividends short-term are taxed at 12% rate
Massachusetts State Income Tax Overview
Massachusetts imposes a flat income tax rate of 5% on most income, with a higher surtax of 4% on income above $1 million, making the effective top rate 9% for very high earners under the Fair Share Amendment passed in 2022. Massachusetts taxes most income at the flat rate, including wages, interest, dividends, and long-term capital gains. Short-term capital gains are taxed at 8.5%. Massachusetts allows a personal exemption of $4,400 for single filers and $8,800 for married couples. The state does not tax Social Security benefits, and certain pension income for state and municipal employees is exempt.
Massachusetts Income Tax Brackets (2025)
These are the Massachusetts state income tax brackets for tax year 2025. Massachusetts applies the same brackets to all filing statuses. Only the income within each bracket is taxed at that rate -- not your entire income.
| Taxable Income | Tax Rate |
|---|---|
| $0 - $1,083,150 | 5% |
| Over $1,083,150 | 9% |
Source: Massachusetts Department of Revenue. Massachusetts applies these brackets to all filing statuses.
What a Massachusetts Resident Actually Pays: A Worked Example
Your effective tax rate is almost always lower than your top bracket. Here is how the math works for a single filer earning $65,000.
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Frequently Asked Questions -- Massachusetts Income Tax
Does Massachusetts have a state income tax?
Yes. Massachusetts imposes a state income tax with a top marginal rate of 9%. This is separate from your federal income tax obligation.
What is the Massachusetts income tax rate for 2025?
Massachusetts uses a graduated income tax system with rates from 5% to 9%. Only the income within each bracket is taxed at that bracket's rate -- not your entire income.
Do I have to file a Massachusetts state tax return?
Most full-year Massachusetts residents with income above the state filing threshold must file a state return. Check the Massachusetts Department of Revenue for current thresholds and requirements.
How accurate is this estimate?
This is a planning estimate of your federal income tax only. It does not calculate Massachusetts state tax, and it does not account for state deductions, credits, exemptions, or local taxes. Use the Massachusetts rate schedule above as a reference, and verify with official Massachusetts tax forms or a qualified tax professional.
Does this calculator include federal income tax?
Yes. The calculator estimates your 2025 federal income tax using the official IRS 2025 brackets. It does not compute your Massachusetts state tax -- see the Massachusetts rate schedule below to work that out.
Where can I find official Massachusetts tax forms?
Official forms, instructions, and filing guidance are available at the Massachusetts Department of Revenue.
What is the sales tax rate in Massachusetts?
Massachusetts's combined state and average local sales tax rate is 6.25%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Massachusetts 2025 state taxes due?
2025 taxes are generally filed in 2026. The Massachusetts filing deadline is April 15, 2026, the same as the federal deadline.
Understanding Your Massachusetts Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Massachusetts state tax owed to the Massachusetts Department of Revenue. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Massachusetts Bill
Pre-tax retirement contributions reduce your federal and Massachusetts taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Massachusetts-specific credits and deductions that don't exist at the federal level are listed at the Massachusetts Department of Revenue -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Massachusetts's combined state-plus-average-local sales tax rate is 6.25%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Massachusetts Department of Revenue or a qualified tax professional for guidance specific to your situation.