Personal Income Tax for Residents

ma state tax percentage

Clothing purchases, including shoes, jackets and even costumes, are exempt up to $175. A product that costs more than $175 is taxable above that amount, so a $200 pair of shoes would be taxed at 6.25% on the $25 above the exemption limit. Other exempt items include newspapers, admissions tickets (i.e. to movies or sporting events), professional or personal services and most health care products. There are no additional local taxes collected, so 6.25% is the rate you will pay regardless of where you are in the state. The tax is on the purchase or use of “tangible personal property.” This includes nearly any purchasable good, with some exceptions. Unlike other states, Massachusetts does not have a state standard deduction.

ma state tax percentage

As an employer, you must withhold Massachusetts personal income taxes from all Massachusetts residents’ wages for services performed either in or outside Massachusetts and from nonresidents’ wages for services performed in Massachusetts. 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 ma state income tax of states with a flat income tax rate. For tax year 2023, people who are required to file a Massachusetts tax return will see the entirety of their taxable income charged at a flat 5% rate. Certain types of income in the Bay State, however, are subject to a different tax rate. Maine collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets.

Massachusetts Tax Tables 2022 – Tax Rates and Thresholds in Massachusetts

Residents of Virginia, for example, generally get until May 1 to file their state returns. Check with your state’s tax and revenue authority for further information. Because the state only has one flat tax amount, there are no Massachusetts tax brackets. For example, if someone has $15,000 in taxable income in 2022, they would be taxed at the same rate as someone with $150,000 in taxable income within the year. The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Massachusetts’ and may have different rules.

  • You may also qualify for certain personal income tax credits, which can reduce the amount of tax you owe.
  • Anyone who files a Massachusetts state tax return is given a personal exemption amount based on their tax-filing status.
  • Every employer who has to deduct and withhold taxes on wages must also submit quarterly wage reports.
  • To qualify for a six-month extension, you must pay at least 80% of the total amount of tax owed by that mid-April deadline.
  • Likewise, if your rent is paid by a third party, such as a parent, you aren’t eligible for this deduction.
  • As mentioned above, incomes that exceed this threshold are subject to a 4% surtax that was first instituted in 2023.

Residents who turned 65 before Jan. 1, 2023, can receive a $700 exemption on top of the state’s personal exemptions. This is per person (not household), so if your  spouse turned 65 by Jan. 1, they can also claim the exemption. If you are 65 or older before Jan. 1, 2023, you may be eligible for the Senior Circuit Breaker tax credit, depending on the taxes or rent you paid on your principal residence. Contact your city or town to see if they participate.View tax tips for seniors and retirees in Massachusetts. Household/domestic employers have the option to withhold federal and state income taxes from wages, which can relieve employees of the responsibility to pay estimated taxes.

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If the taxpayer is filing as head of household and/or either the taxpayer or their spouse is blind, reduce the withholding amount according to the ‘Additional withholding reductions’ table below. Employees must report the above-listed information on a Form M-4 – Employee’s Withholding Exemption Certificate and claim the proper number of exemptions. Employees can change the number of their exemptions on Form M-4 by filing a new certificate at any time if the number of exemptions increases.

ma state tax percentage

Effective for tax years beginning on or after January 1, 2023, the maximum amount of the Lead Paint Tax Credit has been increased from $1,500 for each residential unit in which lead paint was deleaded to $3,000. In addition, the maximum amount of the credit for residential units in which lead paint was partially covered or removed has been increased from $500 to $1,000. The federal standard deduction for a Head of Household Filer in 2022 is $ 19,400.00.

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