Complete and e-File your Massachusetts Income Tax Return on eFile.com along your Federal Tax Return. Find information on Massachusetts income brackets and rates, standard deductions, and tax forms by tax year. When you pay more taxes (i.e., withholding taxes or estimated taxes) than the amount of taxes determined to be due an overpayment may be generated on your account.
State income tax brackets
Capital gains in those categories are included as taxable income on the Massachusetts income tax return. Short-term capital gains, which are realized in less than a year, are taxed at a rate of 8.5%, as are long-term gains on the sales of collectibles. The federal income tax is a tax that the United States government levies on the annual earnings of individuals, corporations, trusts, and other legal entities. This tax is progressive, which means the tax rate you pay — the percentage of each additional dollar that goes to the government — increases as your income increases.
for Filing Status
There is a state payroll tax for the Paid Family and Medical Leave (PFML) program. 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 need information about the most common differences between the federal and Massachusetts state tax treatment of personal income, please visit our overview page. Before filing, you can learn more about the advantages of filing online. If you file online, you can expect to receive your refund within 2 weeks.
Massachusetts Gov. Healey’s plan to close Canton children’s rehab hospital rattles community: ‘Almost criminal’
When you prepare your return on eFile.com this is all calculated for you based on your income. An overpayment claimed on a return may be applied as a credit for your next year’s estimated tax or you may request that it be refunded to you. An overpayment may also be offset or intercepted by the Department of Revenue and applied to another liability. However, often an overpayment is refunded directly to you. Enter your filing status on either Form 1 or 1-NR/PY, Line 1, and fill in the appropriate oval. Enter your spouse’s Social Security number in the appropriate space at the top of the return under taxpayer’s Social Security number.
- This applies on all items except where the publications are produced in accessible format for individuals who cannot read print due to a disability.
- If you qualify for an extension, your return is due on or before October 15, 2025.
- But dollars below that amount will be taxed at the rate corresponding to the brackets they fall into.
- Exemptions are generally related to your filing status and number of dependents you report on your tax return, but not always.
- Remember that Massachusetts may have very different deduction laws from the Federal Income Tax, so you may have to write a whole new list of deductions for your Massachusetts income tax return.
- An overpayment may also be offset or intercepted by the Department of Revenue and applied to another liability.
Recent changes impact the eligibility requirements for qualified conservation contributions made bypass-through entities. Unless certain requirements are met, these contributions will not be treated as Qualified Conservation Contributions made bypass-through entities after December 29, 2022. Massachusetts does not have standard and itemized deductions.
The median property tax bill in the state is $5,584 – one of the highest in the country. Property taxes in the Bay State are relatively high, and the Commonwealth also has an estate tax. The federal aid bill deployed billions in American Rescue Plan Act dollars and surplus state tax revenue from fiscal year 2021. The legislation largely focused on initiatives in health care, education, workforce, infrastructure, housing, and education.
DOR Contact
The due date and payment date for returns and payments is extended for a specified period of time announced by the IRS unless we publicly announce otherwise. This extension covers filing tax returns, paying tax (including estimated tax), and filing tax extension forms with us. But you may pay federal taxes on a portion of your Social Security benefits, depending on your income. 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.
- Income taxes are taxes imposed on individuals or entities that earn income.
- 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.
- If the estate has a gross value (before any deductions) over that level, a Massachusetts estate tax return must be filed.
- If at least one spouse’s Massachusetts gross income did not exceed $8,000, a joint return does not have to be filed.
- Massachusetts also has a flat statewide sales tax rate of 6.25%.
- If you’re a full-year resident with an annual Massachusetts gross income of more than $8,000, you must file a Massachusetts tax return.
Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. Qualifying deductions might include an itemized deduction, the Massachusetts standard deduction, exemptions for dependants, business expenses, etc. Keep in mind that this estimator assumes all income is from wages, assumes the standard deduction, and does not account for tax credits. The Federal Income Tax, by contrast, has different tax brackets for Single, Married Filing Jointly, and Head of Household taxpayers.
How to calculate income tax in Massachusetts?
If you’re married filing joint, both spouses must sign the return. In the Bay State, estates are taxed at rates ranging from 0.8 percent to 16 percent, depending on the value of the estate. Estates valued under $2 million are not subject to the estate tax. Property taxes in Massachusetts are one of the most significant sources of revenue for local governments. In some counties, median property taxes paid exceed $6,000 per year.
Massachusetts requires its own form for extensions, which can be completed electronically or by What is partnership accounting mail. The filing extension is automatic, with no need to file forms, if at least 80 percent of the tax due is paid by the April 15 deadline. Learn more about filing an extension, as well as penalties and interest.Michelle Cerulli McAdams is a freelance writer based in Massachusetts.