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
Estimate Your 2025 Federal and Massachusetts State Income Tax
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.
What Is Different About Massachusetts's Income Tax
Deductions and exemptions
Massachusetts has no standard deduction. It provides personal exemptions of $4,400 for single filers and $8,800 for joint filers, a $1,000 dependent exemption, and specific deductions for rent paid (up to $4,000), commuter costs, and Social Security and Medicare taxes withheld up to $2,000. Federal itemized deductions do not carry over.
Credits worth knowing
The state earned income credit is 40% of the federal credit. Massachusetts also offers a child and family tax credit of $440 per dependent, a senior circuit breaker credit that refunds property tax to homeowners and renters 65 and older, and a credit for taxes paid to other states.
Retirement, capital gains, and other income
Social Security and Massachusetts state, local, and federal government pensions are exempt, but private pensions, 401(k), and IRA distributions are taxed at the 5% rate. Military retirement pay is exempt. Short-term capital gains face a 8.5% rate, long-term gains the standard 5%, and income above $1 million pays an additional 4% surtax.
Rules summarized from the Massachusetts Department of Revenue guidance for tax year 2025. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
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.
Where Massachusetts Stands Among the 50 States
Massachusetts's top rate of 9% ranks #7 of the 41 states that tax wages -- among the ten highest in the country. The median top rate across those 41 states is 5.2%, so Massachusetts is above the middle of the pack. It is one of 27 states with a graduated schedule, using 2 brackets; the top rate starts at $1,083,150 of taxable income, and the lowest bracket ends at $1,083,150.
On sales tax the picture is different: Massachusetts's combined state and average local rate of 6.25% ranks #34 of 50, against a national median of 7.00%.
Massachusetts State Tax at Five Income Levels (2025, single filer)
| Taxable income | Massachusetts tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $2,000 | 5.00% | 5% |
| $65,000 | $3,250 | 5.00% | 5% |
| $100,000 | $5,000 | 5.00% | 5% |
| $150,000 | $7,500 | 5.00% | 5% |
| $250,000 | $12,500 | 5.00% | 5% |
Brackets applied directly to the taxable-income figure shown, before Massachusetts-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
Massachusetts vs. Its Neighbors on $75,000 of Taxable Income
A Massachusetts resident with $75,000 of taxable income pays about $3,750 in state income tax. Of Massachusetts's 5 neighboring states, 4 would tax that income less and 1 would tax it more.
| State | Structure | Tax on $75,000 | Top rate | Sales tax |
|---|---|---|---|---|
| Massachusetts (you) | Graduated | $3,750 | 9% | 6.25% |
| New Hampshire | No income tax | $0 | None | 0% |
| Rhode Island | Rate to 5.99% | $2,813 | 5.99% | 7% |
| Connecticut | Rate to 6.99% | $3,375 | 6.99% | 6.35% |
| Vermont | Rate to 8.75% | $3,393 | 8.75% | 6.24% |
| New York | Rate to 10.9% | $3,960 | 10.9% | 8.52% |
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?
The federal figure uses the official IRS 2025 brackets and standard deduction. The Massachusetts figure applies the 2025 single-filer rate schedule to the same taxable income; it does not model Massachusetts-specific deductions, exemptions, credits, or local income taxes, so treat it as a planning number and confirm with the Massachusetts Department of Revenue or a tax professional before filing.
How does Massachusetts compare with nearby states?
On $75,000 of taxable income, Massachusetts collects about $3,750. New Hampshire collects $0, Rhode Island collects $2,813, Connecticut collects $3,375, Vermont collects $3,393, New York collects $3,960. See the comparison table above.
Where does Massachusetts rank on state income tax?
Massachusetts's top rate of 9% ranks #7 of the 41 states with an income tax, against a median top rate of 5.2%. Its combined sales tax of 6.25% ranks #34 of 50.
Does this calculator include federal income tax?
Yes. It estimates your 2025 federal income tax using the official IRS 2025 brackets, then applies the Massachusetts rate schedule to the same taxable income and shows both figures plus the combined total.
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.