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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Massachusetts imposes 2 tax rates — 5.2% and 12% — depending upon the type of income reported. More on Massachusetts taxes can be found in the tabbed pages below. Personal income tax
Massachusetts imposes 2 tax rates: A 5.15% rate that applies for the 2015 tax year to wages, interest and dividends, and long-term capital gains. Beginning with the 2016 tax year, the rate drops to 5.1%. A 12% rate applies to short-term capital gains, long- and short-term capital gains on collectibles, and installment sales before 1996 that are classified as capital gains income. A Massachusetts full-year or part-year resident is required to file a state tax return if his Massachusetts gross income is in excess of $8,000. Form 1, Resident Income Tax Return, is due by April 15, or the next business day if that date falls on a weekend or holiday. The state’s limited income credit is available for taxpayers whose incomes fall below the specified filing thresholds for their statuses. This credit is an alternative tax calculation that can result in a tax reduction for a taxpayer whose income is close to the no-tax status threshold. The credit is not available to married taxpayers who file separate returns. See the instructions for details. Sales taxes
Massachusetts imposes a 6.25% sales tax on retail sales of tangible personal property in Massachusetts by any vendor. Personal and real property taxes
All real and tangible personal property located within the commonwealth of Massachusetts is taxable unless specifically exempted by statute. The administration of the assessment and collection of all real and tangible personal property taxes in the commonwealth of Massachusetts is handled by the city and town assessor and collected in the jurisdiction where the property is located. Lower rates among jurisdictions, however, don’t necessarily mean lower tax bills; that is determined by the assessed value of property (based on 100% of the fair market value) within a municipality. Property is taxed according to its class: residential, open space, commercial, industrial and personal property. All real and tangible personal property taxes are due in 2 installments. The first half of the tax is due by Nov. 1 in the year of assessment or within 30 days from the mailing date of the tax bill — whichever is later. The second half of the tax is due by May 1 of the year following the assessment year. There are several available for certain taxpayers and types of property. Inheritance and estate taxes
Massachusetts does not have an inheritance tax, but does collect an . Previously, the state’s estate tax system was tied to federal estate tax collection, but Massachusetts decoupled its estate tax from the current federal levy. Other Massachusetts tax facts
Certain lower-income Massachusetts taxpayers are eligible for the state’s refundable , or EITC. Taxpayers can , including payments of more than $150 for tolls paid through the Massachusetts FastLane account and the cost of weekly or monthly passes for Massachusetts Bay Transit Authority transit, bus, commuter rail or commuter boat. The total deduction amount cannot exceed $750 per individual. More information is available on and the work sheet for Schedule Y. New residents can obtain information on state tax rates from the Massachusetts Department of Revenue’s . To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click for instructions. Related Links: Related Articles: SHARE: Kay Bell Related Articles