State Tax Guide

Massachusetts State Taxes: A Simple Guide

Massachusetts has a state income tax, state and local sales taxes, and local property taxes. This guide walks through the basics for individuals in straightforward language.

ℹī¸Important: This is a general overview. Massachusetts tax rules, rates, and programs change over time. Always rely on official state guidance or a tax professional for current details.

💰Massachusetts state income tax

Massachusetts taxes personal income under its own rules and rates, separate from federal law. In general:

📋Residents above certain income thresholds must file a Massachusetts state income tax return
📍Nonresidents may need to file if they have Massachusetts-source income
📝The state uses its own definitions of income, deductions, and credits, which may differ from the federal system

📄 Typical filing: Most residents will file a federal Form 1040 and a separate Massachusetts return for the same tax year if they meet filing requirements.

🛒Sales and use tax

Massachusetts has a state sales and use tax that applies to many retail sales of goods and some services.

→Some items, such as certain groceries or clothing, may be exempt or taxed differently under Massachusetts law
→
If you purchase taxable items from out of state or online without being charged sales tax, you may owe use tax to Massachusetts

đŸ’ŧ Business owners: Businesses selling taxable goods or services in the state generally must register, collect, and remit sales and use taxes to Massachusetts.

🏠Property taxes

Property taxes in Massachusetts are imposed mainly by cities and towns and are based on the assessed value of real property like homes and land.

📊Homeowners receive property tax bills from their local city or town
📍Property tax rates and exemptions vary by municipality
đŸĢProperty taxes fund local services like schools, public safety, and infrastructure

📍 Local details: For exact information on property tax rates and relief programs, check with your city or town assessor's office.

🔗Putting Massachusetts taxes together

A typical Massachusetts resident may deal with several kinds of tax:

1ī¸âƒŖFederal income tax (Form 1040)
2ī¸âƒŖMassachusetts state income tax
3ī¸âƒŖState sales and use tax on purchases
4ī¸âƒŖLocal property taxes if they own a home

📚 Build your foundation: Understanding federal basics like taxable income and how to file your taxes makes it easier to layer Massachusetts rules on top and see the full picture.

Related Guides

→ What is Form 1040?→ What is taxable income?→ How to file your taxes (simple)→ What is a tax return?← Back to all state tax guides

Estimate your tax refund

Calculate your federal and Massachusetts state tax liability.

Calculate Your Refund→

This Massachusetts guide is a general summary and does not cover every exception, credit, or local program. Always check current state and local guidance.