If a portion of your expenses was reimbursed by your employer, the total amount paid must be reduced by the reimbursement amount. If you commute to work, you can deduct certain transportation costs such as tolls paid through an E-Z Pass MA account and the costs of weekly or monthly passes to Massachusetts’ public transit system. If you, your spouse, or your dependent attend a qualifying two or four-year college to obtain a degree, diploma, or certificate, you may deduct any tuition costs that exceed 25% of your Massachusetts AGI. However, the amount of any scholarships, grants, or financial aid that the student receives needs to be subtracted from the total tuition. AARP is a nonprofit, nonpartisan organization that empowers people to choose how they live as they age. DonateAs a nonprofit, we depend on the generosity of individuals like you.

We believe everyone should be able to make financial decisions with confidence. If you need assistance, please contact the Massachusetts Department of Revenue.

  1. In New Hampshire, for example, regular income is generally not subject to state tax, but a flat tax rate applies to dividends and interest income.
  2. Condo owners are also entitled to a credit for repairs done to common areas in addition to the work done in their individual units.
  3. Here’s how it works, and a list of state tax rates across the U.S.
  4. MassTaxConnect will allow you to store banking information using Payment Channels.

Your filing status on your Massachusetts personal income tax can affect your exemptions you’re and how much you’re taxed. The 2023 tax rates and thresholds for both the Massachusetts State Tax Tables and Federal Tax Tables are comprehensively integrated into the Massachusetts Tax Calculator mass state taxes for 2023. This tool is freely available and is designed to help you accurately estimate your 2024 tax return. The 2024 tax rates and thresholds for both the Massachusetts State Tax Tables and Federal Tax Tables are comprehensively integrated into the Massachusetts Tax Calculator for 2024.

If you’re making estimated tax payments, be sure to include an estimated tax payment voucher. The correct mailing address will be printed on your payment https://turbo-tax.org/ voucher. As tax rates increase or products are banned from sale, consumers and producers search for ways around these penalties and restrictions.

The Short Form: Do People Really Move Because of Taxes?

This influences which products we write about and where and how the product appears on a page. If a vendor is not listed, go to their website to confirm if they offer the tax services you need. Looking for a do-it-yourself way to e-file your return for free? 5.00% 
For wages exceeding $1,053,750, there is an additional surtax of 4%.

If you have to file or pay on paper, go to the Current Tax Filing Season Overview page. OnLine Taxes at OLT.com would like to offer free federal and free state online tax preparation and e-filing if your Federal Adjusted Gross Income is $45,000 or less, regardless of age. E-filing and paying online is fast, safe, accurate, and provides electronic confirmation. Use tax is a 6.25% tax paid on out-of-state or out-of-country purchases that are used, stored or consumed in Massachusetts and on which no Massachusetts sales tax (or less than 6.25%) was paid. If an extension payment is required to reach the 80% threshold, you can pay electronically. If you need to pay $5,000 or more to qualify for an extension, you are required pay electronically.

Massachusetts: Federal EITC(Earned Income Tax Credits) Rates and Thresholds in 2023

These plans are designed to encourage long-term savings by providing tax advantages. Contributions made to these plans are typically pre-tax, meaning they are deducted from the employee’s gross income before taxes are calculated. This reduces the taxable income for the year, potentially leading to lower tax liabilities. Additionally, the funds in these retirement accounts grow tax-deferred, meaning that taxes on investment gains are not paid until the money is withdrawn during retirement, ideally at a lower tax rate. These state income tax rates apply to income earned in 2023, which is reported on tax returns filed in 2024. Massachusetts is one of a handful of states with a flat income tax rate.

Individuals and businesses are taxed in Massachusetts for various reasons. The most common is state income tax for individuals, estate tax, and various business taxes. State income taxes vary by state and are an amount of money that you pay to the state government based on a percentage of your income.

© 2024 Tax-Rates.org

The federal standard deduction for a Head of Household Filer in 2024 is $ 21,900.00. Assuming the funds are available in your bank account, your bank will electronically transfer the funds to the appropriate DOR bank account. Since DOR is moving toward account IDs, we encourage you to use the account ID number.

Massachusetts Married (separate) Filer Tax Tables

Benefits of e-Filing your Massachusetts tax return include instant submission, error checking, and faster refund response times. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below. If you’re a nonresident with an annual gross income of more than either $8,000 or the prorated personal exemption (whichever is less), you’re required to file taxes in Massachusetts.

No one offers more ways to get tax help than H&R Block.

Likewise, if your rent is paid by a third party, such as a parent, you aren’t eligible for this deduction. With this service, we’ll match you with a tax pro with Massachusetts tax expertise. Then, you will upload your tax documents, and our tax pros will do the rest! We can help with your MA taxes, including federal deductions for paying state taxes. Understanding your tax obligation and potential federal deductions you can take. What’s even more time-intensive is how to deduct state tax from your federal taxes as an itemized deduction.

People who are blind, seniors, surviving spouses and veterans, as well as anyone who claims the Bay State as their primary residence,  may qualify for local property tax exemptions. Personal property such as cars and boats are typically taxed locally through excise taxes. Due to the Tax Cuts and Jobs Act, state and local tax deductions, including state income taxes, are limited to $10,000 per year ($5,000 for married filing separately).

Estates seeking an extension of time to file and pay the estate tax must still request approval from DOR by filing Form M-4768. Once the extension is granted, the 6-month extension starts at the filing due date of the original return. An extension to file a return doesn’t extend the due date for paying any tax due. Tax-Rates.org provides easy access to five of the most commonly used Massachusetts income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Massachusetts tax forms library or the ‘s tax forms page.

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