Massachusetts tax rates place this state 34th in the rank list published by taxfoundation.org. The state of Massachusetts has a flat rate of the personal income tax rate, unlike the federal or many other states of the USA. Massachusetts’s individual income tax rate is fixed at 5.00% for all filing status tax returns.
The corporate tax in Massachusetts is 8.00 per cent during the tax year 2022, and the sales tax rate is fixed at 6.25 per cent.
Table of Contents
What is the personal exemption amount in the state of Massachusetts?
Massachusetts personal exemption during the tax year 2022 is based on the person’s filing status. The table below reflects the annual income up to which no tax is levied by the state of Massachusetts :
|Married filing separate||$4,400|
|Head of household||$6,800|
|Married filing joint||$8,800|
Massachusetts Tax Rates table 2022
|*Type of Tax*||*Income Type*||*Tax Rate*|
|*Tax year 2021 (File in 2022) Personal income and fiduciary income *||Investment income that includes Long-term capital gain, dividends, interest, wages, other income||5.00%|
|*Tax year 2021 (File in 2022) Personal income and fiduciary income *||Short-term capital gains||12.00%|
|*Tax year 2021 (File in 2022) Nonresident*||Massachusetts sourced income||5.00%|
|*Tax year 2022 Withholding*||Wages||5.00%|
|*Estate*||Federal taxable estate|
Massachusetts real and tangible property
|0.8% – 16%|
|*Alcoholic Beverages*||Malt (31-gal. bbl.)||$3.30|
|*Alcoholic Beverages*||Cider 3%-6% (wine gal.)||$0.03|
|*Alcoholic Beverages*||Still wine, including vermouth (wine gal.)||$0.55|
|*Alcoholic Beverages*||Sparkling wine (wine gal.)||$0.70|
|*Alcoholic Beverages*||Alcoholic beverages 15% or less (wine gal.)||$1.10|
|*Alcoholic Beverages*||Alcoholic beverages more than 15%-50% (wine gal.)||$4.05|
|*Alcoholic Beverages*||Alcoholic beverages more than 50% of alcohol (proof gal.)||$4.05|
|*Smokeless tobacco*||Smokeless tobacco (percentage of price paid by licensee)||210%|
|*Cigars & smoking tobacco*||Cigars & smoking tobacco (percentage of price paid by licensee)||40%|
|*Electronic Nicotine Delivery Systems *||Wholesale Price||75.00%|
|*Deeds*||Sales price (less mortgage assumed) of real estate||$2.28 per $500|
Visit TIR 19-14 for surcharge information.
|*Motor fuels*||Gasoline and diesel fuel per gallon||$0.24|
|*Motor fuels*||Propane, liquefied gas, etc. (no minimum)||19.10%|
|*Motor fuels*||Aviation (10¢ minimum)||7.50%|
|*Motor fuels*||Jet fuel at local option (5¢ minimum)||5%|
|*Room occupancy*||State Room Occupancy||The state’s room occupancy excise tax rate is 5.7%. Note that while the |
statute provides for a 5% rate, an uncodified surtax adds .7% to that rate.
|*Room occupancy*||Local Option||In addition to the state excise, Massachusetts cities and towns are |
permitted to charge a local room occupancy excise tax up to 6% (6.5% for
|*Room occupancy*||Convention Center Financing||In the cities of Boston, Worcester, Cambridge, Springfield, West |
Springfield, and Chicopee, an additional 2.75% tax is charged for
convention center funding. See TIR 05-01 for more information.
|*Room occupancy*||Cape Cod and Islands Water Protection Fund||In Barnstable, Nantucket and Dukes Counties an additional 2.75% may be |
charged for the Cape Cod and Islands Water Protection Fund beginning July
1, 2019. Currently this applies for all Barnstable County municipalities.
|*Room occupancy*||Short-term Rentals Community Impact Fee||Beginning July 1, 2019, for short-term rentals only, cities and towns are |
permitted to charge an additional community impact fee up to 3% if an
operator has more than one property in that locality or is renting an
owner-occupied 2 or 3 family house on a short-term rental basis.
|*Club alcoholic beverages*||Gross receipts||0.57%|
|*Sales and use tax*||Sale, rental or use of tangible personal property, including cigarettes, |
telecommunications services and certain fuel.
|*Sales tax on marijuana*||Adult use marijuana is subject to: |
– a state sales tax
– a state excise tax
– a local option for cities or towns
|6.25% (state sales tax)|
10.75% (state excise tax)
up to 3% (local option for cities and towns)
|*Sales tax on meals, prepared food and all beverages*||All “restaurant” food and on-premises consumption of any beverage in any |
A city or town may also charge a local sales tax on the sales of restaurant
Visit TIR 09-13.
|*Direct broadcast satellite service*||Gross revenues||5%|
|*Business and manufacturing corporations*||Net income|
Tangible property or net worth
$2.60 per $1,000
|*S corporations subject to G.L. c. 63 §§ 32D, 39*||Total receipts $6 million or more but less than $9 million (net income)||2% (tax year 2020)|
|*S corporations subject to G.L. c. 63 §§ 32D, 39*||Total receipts $9 million or more (net income)||3% (tax year 2020)|
|*S corporations subject to G.L. c. 63 §§ 32D, 39*||Tangible property or net worth||$2.60 per $1,000|
|*S corporations subject to G.L. c. 63 §§ 32D, 39*||Minimum||$456|
|*S corporations subject to G.L. c. 63 §§ 32D, 39*||Net income taxable at the federal level including certain built-in gains |
that are taxable at the federal level under IRC § 1374 and on passive
investment income taxable at the federal level under IRC § 1375.
*Non-bank holding company Bank holding company*
|*Financial institutions*||Net income|
|*S corporations that are financial institutions*||Total receipts $6 million or more but less than $9 million (net income)||2.67% (tax year 2020)|
|*S corporations that are financial institutions*||Total receipts $9 million or more (net income)||4% (tax year 2020)|
|*S corporations that are financial institutions*||Minimum||$456|
|*S corporations that are financial institutions*||Net income that is taxable at the federal level.||9%|
|*Ship excise tax*||Value (equity interest) of the corporation’s interest in a ship or vessel |
engaged in interstate or foreign trade.
|*Domestic casualty*||Gross investment income||0.0%-1.0%|
|*Ocean marine*||Underwriting profit||5.70%|
|*Motor vehicles**garaged outside Massachusetts*||90% to 10% of the manufacturer’s list price||$25 per $1,000|
|*Boston sightseeing tour*||Ticket purchase or any water- or land-based sightseeing tourist venue or |
entertainment cruise or trolley tour originating or located in
Massachusetts and conducted partly or entirely in Boston.
|*Boston vehicular rental transaction surcharge*||Each vehicular rental transaction contract is executed in Boston.||$10|
In addition to Boston, there is a $10 surcharge in Revere and a statewide
$2 surcharge. See TIR 19-4 and TIR 05-14.
|*Parking facilities surcharge in Boston, Springfield and/or Worcester*||Parking facilities built in conjunction with or as part of a project |
authorized by the Convention Center Financing Act in Boston, Springfield or
|$2 per vehicle per day|
What are capital gains tax rates in Massachusetts?
The Commonwealth of Massachusetts taxes long term capital gains at a low rate of 5%, whereas short term gains are taxed at a higher rate of 12 % .
|Type of capital gains||2022||2021|
|Short term capital gains on investment||12%||12%|
|Long Term capital gains on investments||5%||5%|
What is the tax withholding rate in Massachusetts?
The tax withholding rate on wages is 5% . All new employees must complete both federal Form W-4 and s Massachusetts Form M-4, Massachusetts Employee’s Withholding Exemption Certificate, for tax withholding purposes.