Massachusetts Tax Rates & Rankings Massachusetts Taxes

This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all available deposit, investment, loan or credit products. Meanwhile, the state inheritance tax only applies to the estates of people who died on or before Dec. 31, 1975. The credit is worth the cost of the removal or fix, up to $1,500.

• You can claim the smaller of 15% of the net expenditure for the renewable energy source property or up to $1,000.
• You are an individual nonresident if you are neither a full-year or part-year resident.
• Sale, rental or use of tangible personal property, including cigarettes, telecommunications services and certain fuel.
• Massachusetts has a flat income tax rate of 5.00%, as well as a flat statewide sales tax rate of 6.25%.
• However, the amount of any scholarships, grants, or financial aid that the student receives needs to be subtracted from the total tuition.

However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient. California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (62.2 cpg). Property taxes are the primary tool for financing local governments and generate a significant share of state and local revenues.

Massachusetts Inheritance Tax and Estate Tax

In the case of certain IRC sections, however, Massachusetts specifically adopts the IRC as currently in effect. Most refunds are claimed on an original return and will be issued automatically by the Department. 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.

To have qualified for a six-month extension, you must have paid at least 80% of the total amount of tax owed by that mid-April deadline. If you didn’t owe any taxes and didn’t file by the deadline, an extension to October was automatically granted. Anyone who files a Massachusetts state tax return is given a personal exemption amount based on their tax-filing status. Taxpayers may also be eligible for additional exemptions, such as those for having qualifying dependents or for having paid certain types of medical or dental costs throughout the tax year. There are no additional local taxes collected, so 6.25% is the rate you will pay regardless of where you are in the state.

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If a portion of your expenses was reimbursed by your employer, the total amount paid must be reduced by the reimbursement amount. 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. This $8,000 income threshold is on a per-person basis, giving married couples the option to file jointly or separately. Massachusetts has some of the highest cigarette taxes in the nation.

• California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (62.2 cpg).
• You may also qualify for certain personal income tax credits, which can reduce the amount of tax you owe.
• This compensation may impact how and where products appear on this site (including, for example, the order in which they appear).
• If you earned less than $8,000 during the 2021 tax year, you don’t have to file a Massachusetts tax return.
• A bill introduced in the Massachusetts House, (H. 74) would expand funding for community media programming by imposing a new tax on the gross revenues of digital streaming service providers.

Massachusetts has its own estate tax, which applies to any estate above the exclusion amount of $1 million. If the estate has a gross value (before any deductions) over that level, a Massachusetts massachusetts income tax estate tax return must be filed. However, estate tax is only due if the taxable estate (after deductions) exceeds $1 million. Most food sold in grocery stores is exempt from sales tax entirely.