Massachusetts has a flat 5% income tax with an additional 4% surtax on income over $1,107,750 (2026 threshold) — resulting in a 9% top marginal rate for high earners.
Massachusetts Tax Rates 2026
| Income Level | Tax Rate |
|---|---|
| Up to $1,107,750 | 5% |
| Over $1,107,750 | 9% (5% + 4% surtax) |
The 4% surtax (known as the “Millionaire’s Tax” or Fair Share Amendment) was approved by voters in 2022 and applies to taxable income exceeding an annually inflation-indexed threshold. The threshold started at $1,000,000 in 2023 and has risen each year since: $1,053,750 (2024), $1,083,150 (2025), and $1,107,750 (2026).
How Much Will I Pay in Massachusetts Tax?
| Taxable Income | Massachusetts Tax | Effective Rate |
|---|---|---|
| $50,000 | $2,500 | 5.0% |
| $75,000 | $3,750 | 5.0% |
| $100,000 | $5,000 | 5.0% |
| $150,000 | $7,500 | 5.0% |
| $250,000 | $12,500 | 5.0% |
| $500,000 | $25,000 | 5.0% |
| $1,000,000 | $50,000 | 5.0% |
| $1,500,000 | ~$90,690 | ~6.05% |
| $2,000,000 | ~$135,690 | ~6.78% |
At $1,500,000: 5% on the first $1,107,750 ($55,388) + 9% on the remaining $392,250 ($35,303) = ~$90,690 total. At $2,000,000: 5% on $1,107,750 ($55,388) + 9% on $892,250 ($80,303) = ~$135,690 total.
Massachusetts Deductions
Massachusetts doesn’t use the federal standard deduction. Instead, it offers:
Personal Exemptions
Confirm current-year personal exemption amounts with the Massachusetts Department of Revenue, as these figures are periodically adjusted and were not independently re-verified this session.
Itemized Deductions Allowed
- Mortgage interest (subject to limits)
- Charitable contributions
- Child care expenses
- Medical/dental expenses (above a percentage-of-AGI threshold)
- Student loan interest (up to a federal-conforming cap)
Deductions NOT Allowed
- State and local taxes (SALT) on the Massachusetts return
- Investment interest
- Miscellaneous itemized deductions
Massachusetts Capital Gains
Massachusetts taxes capital gains differently based on holding period:
| Holding Period | Tax Rate |
|---|---|
| Short-term (under 1 year) | 8.5% |
| Long-term (1+ years) | 5% |
| Collectibles | 5% |
Short-term gains face a higher 8.5% rate, incentivizing longer holding periods. The 4% surtax applies on top of these rates for total taxable income above the current-year surtax threshold.
Massachusetts vs. Other States
| State | Top Rate | Type |
|---|---|---|
| Massachusetts | 9%* | Flat + surtax |
| New York | 10.9% | Progressive |
| Connecticut | 6.99% | Progressive |
| Rhode Island | Confirm current top rate | Progressive |
| New Hampshire | 0% | No income tax of any kind (former interest/dividends tax fully repealed effective January 1, 2025) |
| California | 13.3% | Progressive |
*9% applies to income over the current-year surtax threshold ($1,107,750 for 2026)
Massachusetts Retirement Income
| Income Type | Tax Treatment |
|---|---|
| Social Security | Fully exempt |
| 401(k), IRA distributions | Taxed at 5% |
| Massachusetts state pension | Fully exempt |
| Federal government pension | Taxed at 5% |
| Private pension | Taxed at 5% |
Social Security exemption is helpful, but private retirement income faces the full 5% rate (plus the surtax if combined income exceeds the current-year threshold).
Massachusetts Tax Credits
Confirm current amounts for Massachusetts’s tax credits with the Department of Revenue, as several of these are periodically adjusted:
| Credit | Maximum (confirm current figure) |
|---|---|
| Earned Income Tax Credit | A percentage of the federal EITC |
| Child and Family Tax Credit | Per-child/dependent amount, confirm current figure |
| Senior Circuit Breaker | Confirm current maximum |
| Dependent Care Credit | Confirm current maximum |
| Commuter Deduction | Confirm current maximum |
Who Must File a Massachusetts Tax Return?
You must file if:
- Gross income exceeds a set threshold (confirm current amount, or lower thresholds for dependents)
- You’re required to file a federal return
- You want to claim a refund
Massachusetts Sales Tax
| Tax Type | Rate |
|---|---|
| State sales tax | 6.25% |
| Local sales tax | None |
| Meals tax | Confirm current rate |
Massachusetts has no local sales tax, so 6.25% applies statewide.
Massachusetts Property Tax
Confirm the current average effective property tax rate, median home value, and median property tax with the Tax Foundation or Massachusetts Department of Revenue, as these were not independently re-verified this session. Massachusetts property taxes have historically been above the national average, especially in wealthy Boston-area suburbs.
How to File Massachusetts Taxes
| Method | Cost | Best For |
|---|---|---|
| Mass.gov Free File | $0 | Confirm current income eligibility limit |
| MassTaxConnect | $0 | All taxpayers |
| Commercial software | $0-$60 | Complex returns |
| Tax professional | $150-$500 | Business owners |
Filing deadline: April 15 (Massachusetts gives automatic extension if federal extension is filed)
Massachusetts Tax Strategies
1. Time Income Around the Surtax Threshold
If you’re near the current-year surtax threshold ($1,107,750 for 2026), consider deferring income or accelerating deductions to avoid the 4% surtax on the marginal amount.
2. Maximize Retirement Contributions
Pre-tax 401(k) and IRA contributions reduce your Massachusetts taxable income at the 5% rate.
3. Claim the EITC
Massachusetts’s EITC match is relatively generous — don’t leave money on the table.
4. Senior Circuit Breaker Credit
Seniors 65+ with property taxes exceeding a set percentage of income may qualify — confirm current thresholds and maximum credit.
5. Hold Investments Long-Term
Short-term gains face 8.5% vs. 5% for long-term — a significant difference.
Massachusetts Part-Year and Nonresident Rules
| Status | What’s Taxed |
|---|---|
| Full-year resident | All income |
| Part-year resident | All income during residency + MA-source income |
| Nonresident | Only MA-source income |
Key Takeaways
- Massachusetts has a flat 5% rate with a 4% surtax on income over the inflation-indexed threshold ($1,107,750 for 2026 — not a flat $1 million)
- Social Security is exempt from state tax
- State pension income is also fully exempt
- Short-term capital gains face a higher 8.5% rate
- State EITC match adds meaningfully to the federal credit for eligible filers
- No local income taxes — the state rate applies everywhere
- Property taxes are high in many areas, especially metro Boston
For a side-by-side comparison of every state’s income tax rates, see state income tax rates by state 2026 and best and worst states for taxes 2026. Federal income tax applies on top of state taxes — see 2026 federal income tax brackets to calculate your combined liability.
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