Massachusetts Sales Tax: What Applies and What Doesnt

For e-filed returns the turnaround time is about 6 weeks; but for paper returns it could take up to 10 weeks. You must claim your refund or credit within a certain time period, as further detailed below. Also, the Department of Revenue must issue refunds within a certain time period or pay interest on the amount of the refund. This page contains important information on the time limitations for claiming a refund and on the calculation of interest. Enter your filing status on either Form 1 or 1-NR/PY, Line 1, and fill in the appropriate oval.

• This surtax, also known as the “Fair Share Amendment,” was approved by voters in 2022 and took effect in 2023.
• The state follows a flat tax system, meaning most residents pay the same percentage of their taxable income in state taxes.
• Many community organizations also help immigrants and new residents with tax questions.
• Anyone who earned $8,000 or more in gross income in Massachusetts during the tax year is required to file a state tax return.
• The method set out on page 13  seeks to ensure that 9% withholding is applied to supplemental wage payments that will be subject to the surtax.
• Massachusetts currently has no reciprocal agreements with any other states.

How do Massachusetts tax brackets work?

• Meanwhile, you may owe a Medicare surcharge if your income is high enough.
• Returns are due annually, and payments follow the same schedule as wage withholding.
• Our calculator uses up-to-date tax rates and formulas specific to Massachusetts to provide accurate estimates.
• Even if you are not required to file a federal return, you still need to file a state tax return if you earn more than the threshold.
• However, high earners should be aware of an additional surtax on income exceeding $1 million.
• Compliance with these regulations is overseen by the Massachusetts Department of Revenue, providing resources and guidance to assist businesses in traversing the sales tax landscape effectively.

Property taxes, for example, are assessed and collected by individual cities and towns, not the Commonwealth. These taxes are governed by M.G.L. Chapter 59, and their rates vary significantly depending on the municipality where the property is located. QuickBooks Accountant Starting with tax year 2024, all married couples that file jointly for federal purposes are required to file jointly in Massachusetts, unless an exception applies. There is no exception for married couples that are subject to the 4% surtax, even if they have different a residency status or residency period in Massachusetts.

• As of January 1, 2020, IRS Form W-4 has been revised to reflect changes resulting from the TCJA where the withholding calculation is no longer tied to the number of personal exemptions claimed.
• If you’re a nonresident with an annual Massachusetts gross income of more than either $8,000 or the prorated personal exemption, whichever is less, you must file a Massachusetts tax return.
• The Personal Exemption, which is supported by the Massachusetts income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses.
• If the taxpayer is filing as head of household and/or either the taxpayer or their spouse is blind, reduce the withholding amount according to the ‘Additional withholding reductions’ table below.
• So that means if you bought an item of clothing costing $250, you’d have to pay a sales tax of 6.25% on the $75 over the threshold.
• If you aren’t sure how much to withhold, use our paycheck calculator to find your tax liability.
• A long-term capital gain is a profit from selling an asset you’ve owned for more than one year.

The One Big Beautiful Bill Cuts Taxes Across the US, New Analysis Finds

Massachusetts is characterized by a flat personal income tax rate of 5% of federal adjusted gross income. Property taxes in Massachusetts are relatively high, and the state also imposes an income summary estate tax. Massachusetts imposes an income tax on its residents and non-residents earning income within the state.

Credits

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. The federal standard deduction for a Head of Household Filer in 2024 is $ 21,900.00. The state extension deadline follows the federal extension deadline set by the IRS, which is Oct. 15, 2025. Keep in mind that ma income tax rate being granted a federal tax extension does not grant you a state tax extension in Massachusetts. 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.

The tax is on the purchase or use of “tangible personal property.” This includes nearly any purchasable good, with some exceptions. If your employer doesn’t withhold for Massachusetts taxes, you will have to pay those taxes in a lump sum at tax time or make estimated tax payments to the state (using form Form 1-ES). Use our enhanced Massachusetts lottery tax calculator with Simple/Advanced modes to estimate your after-tax winnings. Our calculator distinguishes between immediate withholding (24% federal for winnings over $5,000) and your actual tax liability when filing returns. Additionally, we calculate Massachusetts state taxes with local jurisdictions where applicable. Get precise estimates of your total after-tax winnings including both withholding and additional tax liabilities.