Massachusetts imposes a primary state income tax rate of 5% on most earned and unearned income.
An additional 4% surtax applies to annual taxable income above $1,083,150, resulting in a total top marginal rate of 9% for high earners.
Massachusetts Income Tax Rates
| Income Type | Tax Rate | Surtax (on income over $1,083,150) | Total Top Rate |
|---|---|---|---|
| Most Income (wages, salaries, interest, dividends, most long-term capital gains) | 5.0% | + 4.0% | 9.0% |
| Short-term Capital Gains (assets held 1 year or less) | 8.5% | + 4.0% | 12.5% |
| Long-term Gains from Collectibles | 12.0% | + 4.0% | 16.0% |
Other Notable Massachusetts Tax Rates
Sales and Use Tax: A flat statewide rate of 6.25% on the sale or rental of most tangible personal property and certain telecommunication services.
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Property Tax: Rates are local, but the statewide effective property tax rate is around 0.97%.
Estate Tax: Applies to estates valued at more than $2 million, with rates ranging from 0.8% to 16%.
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