S-Corporations and other flow-through entities aren’t subject to the double taxation of revenue imposed on a C-Corp, because they aren’t required to pay corporate taxes on their revenue. However, the owners or members of the corporation must report their share of the corporation’s income on their personal tax returns and pay Massachusetts and federal income tax. The Income tax rates and personal allowances in Massachusetts are updated annually with new tax tables published for Resident and Non-resident taxpayers.

Have Questions About Your Taxes?

Using deductions is an excellent way to reduce your Massachusetts income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and Massachusetts tax returns. For details on specific deductions available in Massachusetts, see the list of Massachusetts income tax deductions. The standard income tax rate is 5%, with an additional 4% surtax on income over $1 million. Property taxes in Massachusetts are one of the most significant sources of revenue for local governments.

Top 10 municipalities with the highest and lowest average single-family tax bills in 2025

While an extension to file does not automatically extend the time to pay, a separate extension for payment can be requested for “undue hardship” for up to three years from the original due date. Failure to meet these deadlines can result in penalties and interest charges. This tax can affect estates of residents and non-residents who own property within the Commonwealth.

• Exemptions for property tax exist for eligible senior citizens and veterans, religous and philanthropic institutions, and blind individuals.
• Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978.
• The Massachusetts wine tax is already added to the purchase price of all wine bought in Massachusetts.
• To get a copy of the Middlesex County Homestead Exemption Application, call the Middlesex County Assessor’s Office and ask for details on the homestead exemption program.
• The Middlesex County Tax Assessor is responsible for assessing the fair market value of properties within Middlesex County and determining the property tax rate that will apply.

Are there any tax breaks for older Massachusetts residents?

The relationship of the heir to the deceased Suspense Account does not influence the tax rate or amount owed in Massachusetts. Pre-tax deductions, such as contributions to retirement plans and Health Savings Accounts (HSAs), reduce your taxable income. Besides income tax, you are also required to pay FICA taxes (Social Security and Medicare). By funding essential social programs, these deductions benefit both current and future generations.

Property Tax Data and Statistics

An irrevocable trust can remove assets from the estate, lowering its taxable value. A Qualified Personal Residence Trust (QPRT) allows homeowners to transfer their residence into a trust while retaining the right to live there for a set term. After this period, the home passes to beneficiaries, removing its value from the estate. Trusts must be carefully structured to comply with Massachusetts law and achieve desired objectives.

Mar 15 What Is the Tax Filing Threshold for 2025?

You can usually deduct 100% of your Middlesex County property taxes from your taxable income on your Federal Income Tax Return as an itemized deduction. Massachusetts may also let you deduct some or all of your Middlesex County property taxes on your Massachusetts income tax return. To compare Middlesex County with property tax rates in other states, see our map of property taxes by state. Unlike the Massachusetts Sales Tax, excise taxes are not generally deductible on Massachusetts income tax returns or on your federal tax return. However, the IRS occasionally allows certain excise taxes to be deducted for certain tax years.

• Tax information is based on publicly available data and may not reflect the most current tax laws or rates.
• If you would like to get a more accurate property tax estimation, choose the county your property is located in from the list on the left.
• This tool is freely available and is designed to help you accurately estimate your 2021 tax return.
• Other items including gasoline, alcohol, and cigarettes are subject to various Massachusetts excise taxes in addition to the sales tax.
• These property tax records are excellent sources of information when buying a new property or appealing a recent appraisal.
• Keep in mind that being granted a federal tax extension does not grant you a state tax extension in Massachusetts.

• This tax applies to all income exceeding $1 million, regardless of filing status, effectively increasing the overall tax rate for high-income individuals.
• For estates exceeding the $2 million exemption, the Massachusetts estate tax is calculated using a progressive rate structure.
• Find information on Massachusetts income brackets and rates, standard deductions, and tax forms by tax year.
• The Massachusetts excise tax on Wine is $0.55 per gallon, lower then 64% of the other 50 states.
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An inheritance tax is typically paid by the individual receiving assets, with rates often depending on their relationship to the deceased. Massachusetts collects special excise taxes on the sale of all types of alcohol, subdivided into specific taxes on wine, beer, and liquor (hard alcohol other then wine and ma income tax rate beer). Alcohol taxes are sometimes collectively referred to as «sin taxes», which also include excise taxes on cigarettes, gambling, drugs, and certain other items. Massachusetts collects general excise taxes on the sale of motor fuel (gasoline and diesel), cigarettes (per pack), and cell phone service plans.

Map of 2024 Massachusetts Residential Property Tax Rates

• There are no additional local taxes collected, so 6.25% is the rate you will pay regardless of where you are in the state.
• As a property owner, you have the right to appeal the property tax amount you are charged and request a reassessment if you believe that the value determined by the Middlesex County Tax Assessor’s office is incorrect.
• Individuals who are deemed able to afford health insurance but fail to obtain it are generally subject to penalties in Massachusetts for each month of noncompliance in the tax year.
• Incentives may exist allowing certain state of federal excise taxes to be refunded on goods bought for specific uses, but such incentives change frequently.
• Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products.

If you’re wondering what is the mill rate or what is the property tax rate in any town in Massachusetts, you’ve come net sales to the right page. Life insurance can be a powerful tool for managing estate tax liabilities. In Massachusetts, life insurance proceeds are included in the decedent’s gross estate if they held any incidents of ownership at death.