Unlike the 6.25% sales tax, which is collected by sellers, use tax is generally paid directly to the state by the purchaser. If you live and work in the same state, you probably need to file only one state return each year if applicable. But if you moved to another state during the year, lived in one state but worked in another, or have, https://turbo-tax.org/ say, income-producing rental properties in multiple states, you might need to file more than one. The federal standard deduction for a Head of Household Filer in 2023 is $ 20,800.00. The following tax tables are supported by iCalculator™ US as part of the suite of free tax tools available in the US Tax HUB we provide for Massachusetts.

  1. The rental deduction is equal to half of the rent paid for a principal residence located in Massachusetts in a taxable year.
  2. You may also qualify for certain personal income tax credits, which can reduce the amount of tax you owe.
  3. Active Duty Military with an adjusted gross income of $79,000 or less will also qualify.
  4. As mentioned above, incomes that exceed this threshold are subject to a 4% surtax that was first instituted in 2023.

We believe everyone should be able to make financial decisions with confidence. If you need assistance, please contact the Massachusetts Department of Revenue.

There is a convenience fee of 2.35% of your payment amount charged by the third-party vendor that provides this service. This will be a more accurate way to pay and verify your payments. Please note that updating your payment channel does not automatically update the banking information for your EFT payment agreement. Payments in MassTaxConnect can be deleted from the Submissions screen. Payments that have a status of In Process or Completed cannot be deleted.

If a portion of your expenses was reimbursed by your employer, the total amount paid must be reduced by the reimbursement amount. If you commute to work, you can deduct certain transportation costs such as tolls paid through an E-Z Pass MA account and the costs of weekly or monthly passes to Massachusetts’ public transit system. If you, your spouse, or your dependent attend a qualifying two or four-year college to obtain a degree, diploma, or certificate, you may deduct any tuition costs that exceed 25% of your Massachusetts AGI. However, the amount of any scholarships, grants, or financial aid that the student receives needs to be subtracted from the total tuition. AARP is a nonprofit, nonpartisan organization that empowers people to choose how they live as they age. DonateAs a nonprofit, we depend on the generosity of individuals like you.

If you own a residential property in Massachusetts and paid to remove or fix a lead paint issue, you may be eligible for a tax credit, provided you complied with state laws. You can deduct any expenses that exceed $150 (married filing jointly taxpayers can deduct expenses above $150 per person). If your mass state taxes 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 $3,000 (up to $1,500 for married filing separate filers). If you earned less than $8,000 during the 2021 tax year, you don’t have to file a Massachusetts tax return.

Types of state income tax

Individuals and businesses are taxed in Massachusetts for various reasons. The most common is state income tax for individuals, estate tax, and various business taxes. State income taxes vary by state and are an amount of money that you pay to the state government based on a percentage of your income.

Massachusetts estate and inheritance Taxes

If you’re making estimated tax payments, be sure to include an estimated tax payment voucher. The correct mailing address will be printed on your payment voucher. As tax rates increase or products are banned from sale, consumers and producers search for ways around these penalties and restrictions.

MassTaxConnect gives you the option to pay by EFT debit or credit card. The state has created a refund estimator to help taxpayers get an idea of what their rebate will be. BOSTON – More than three million Massachusetts taxpayers will be getting some money back from the state starting in November, Governor Charlie Baker announced Friday. View how much tax you may pay in other states based on the filing status and state entered above. Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail. 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.

Compare Your After-Tax Income To Other States

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. Massachusetts does not have a standard deduction, but it allows many of the same itemized deductions as the federal government, as well as some additional ones. That rate applies equally to all taxable income up to $1 million. As mentioned above, incomes that exceed this threshold are subject to a 4% surtax that was first instituted in 2023.

This extension covers filing tax returns, paying tax (including estimated tax), and filing tax extension forms with us. Massachusetts General Laws (MGL) ch 62C, §§ 11 and 12 require C corporations to file their tax returns on or before the 15th day of the fourth month following the close of each taxable year. The filing due date for S corporation tax returns is the 15th day of the third month following the close of each taxable year. For more information, see Technical Information Release (TIR) 17-5.

Benefits of e-Filing your Massachusetts tax return include instant submission, error checking, and faster refund response times. 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. If you’re a nonresident with an annual gross income of more than either $8,000 or the prorated personal exemption (whichever is less), you’re required to file taxes in Massachusetts.

Your filing status on your Massachusetts personal income tax can affect your exemptions you’re and how much you’re taxed. The 2023 tax rates and thresholds for both the Massachusetts State Tax Tables and Federal Tax Tables are comprehensively integrated into the Massachusetts Tax Calculator for 2023. This tool is freely available and is designed to help you accurately estimate your 2024 tax return. The 2024 tax rates and thresholds for both the Massachusetts State Tax Tables and Federal Tax Tables are comprehensively integrated into the Massachusetts Tax Calculator for 2024.