mass state income tax

We do not include the universe of companies or financial offers that may be available to you. As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist. View how much tax you may pay in other states based on the filing status and state entered above.

What’s the deadline for filing Massachusetts state income taxes?

If you got slammed with a big tax bill last year, you have a couple of options to prevent it happening again. You can file a new W-4 or M-4 and request a specific dollar amount of additional withholding from each paycheck. Both forms have a line where you can write in an additional dollar amount to withhold from each paycheck. If you aren’t sure how much to withhold, use our paycheck calculator to find your tax liability.

  • In recent years, the IRS has adjusted the guidelines surrounding the Form W-4.
  • That marked a stark reversal from earlier in the fiscal year, when collections lagged expectations for months, prompting state officials to slash spending, downgrade their revenue forecast, and, last month, freeze some state hiring.
  • Extensions provide additional time to file (until Oct. 15, 2024) — not additional time to pay taxes owed.
  • Cash App Taxes doesn’t support the e-filing of state-only returns, however, paper filing of state-only returns is supported.
  • This credit is an alternative tax calculation that can result in a tax reduction for a taxpayer whose income is close to the no-tax status threshold.
  • The federal standard deduction for a Head of Household Filer in 2023 is $ 20,800.00.
  • Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.

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Taxing millionaires is a contentious issue—but Massachusetts is declaring early victory, with an announcement this week that the state’s tax on its highest earners has yielded $1.8 billion in additional income. With three more months left in the state’s fiscal year, the take is already $800 million more than what officials, including Gov. Maura Healey, planned to spend in additional revenue from the tax, according to the State House News Service. However, a closer look at the data shows Massachusetts’ retention of millionaires is doing just fine. According to the IRS, Massachusetts tax filers with an adjusted gross income of at least $1,000,000 grew by nearly 10,000 in 2021, the year before the new tax was approved. A study by the Pioneer Institute published in 2023 showed that Massachusetts saw a net loss of 25,200 tax filers in 2021. Those who left the state had an adjusted gross income of $4.3 billion greater than those who moved in.

  • Up to 50 percent of your benefits will be taxed if you file an individual tax return and make $25,000 to $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income.
  • If you’re already living well within your budget, consider increasing your contributions to tax-advantaged accounts like a 401(k), HSA or FSA.
  • Check with your state’s tax and revenue authority for further information.
  • Effective January 1, Iowa’s nine individual income tax rates were consolidated into four, and the top rate was decreased from 8.53 to 6 percent.
  • In 2021 — before the “millionaires tax” took effect — Massachusetts said goodbye to taxpayers with a collective $4.3 billion in adjusted gross income, an increase of 40 percent from the prior year, according to an analysis by the Pioneer Institute.
  • For example, taxpayers can make deductions for child care expenses, college tuition (if it exceeds 25% of Massachusetts adjusted gross income), certain commuter costs, rental payments (50% of rent up to $4,000) and student loan interest payments.

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  • And because the price of many tax software packages includes preparation and filing for only one state, filing multiple state income tax returns often means paying extra.
  • Massachusetts has collected about $1.8 billion from a voter-approved surtax on the state’s highest earners through the first nine months of the fiscal year, the Department of Revenue said Monday in a quarterly report.
  • Anyone who files a Massachusetts state tax return is given a personal exemption amount based on their tax filing status.
  • It was nearly doubled for all classes of filers by the 2017 Tax Cuts and Jobs Act (TCJA) as an incentive for taxpayers not to itemize deductions when filing their federal income taxes.
  • If you’re a nonresident with an annual gross income that exceeds either $8,000 or the prorated personal exemption (whichever is less), you’re required to file taxes in Massachusetts.

If the estate has a gross value (before any deductions) over that level, a Massachusetts estate tax return must be filed. Massachusetts does not have a standard deduction, but it allows many of the same itemized deductions as the federal government, as well as some additional ones. For example, taxpayers can make deductions for child care expenses, college tuition (if it exceeds 25% of Massachusetts adjusted gross income), certain commuter costs, rental payments (50% of rent up to $4,000) and student loan interest payments. Massachusetts has a flat income tax rate of 5%, but charges a 4% surtax on income over $1 million. The state’s income tax rate is only one of a handful of states that levy a flat rate.

  • These state income tax rates apply to income earned in 2023, for tax returns filed in 2024.
  • State Senator Michael Rodrigues, the state’s budget chief, said on the Senate floor Monday that excess revenue from the tax could ultimately come close to $1 billion for this fiscal year.
  • New Hampshire began phasing out its income tax on interest and dividend income in 2023, bringing the rate down from 5 to 4 percent.
  • Exemptions and filing thresholds have their place, but policymakers should also explore lowering the overall rate or even seeking to phase the tax out altogether.
  • “With this money from the ultra-rich, we can do even more to improve our public schools and colleges, invest in roads, bridges, and public transit, and start building an economy that works for everyone,” Farnitano said.
  • The additional income for the state is already $800 million more than what lawmakers had budgeted to spend from the new tax.

Earned Income Tax Credit (EITC)

If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Massachusetts allows for other miscellaneous deductions, such as jury duty pay surrendered to your employer, some attorney fees and court costs for unlawful discrimination and other expenses. 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 the Massachusetts public transit system. If you, your spouse or your dependent attend a qualifying two- or four-year college to earn 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.

This is why you need to fill out a W-4 whenever you start a new job. You should also fill one out anytime your filing status changes or you experience a big life change, like having a child. Boston Harbor may be the site of the most mass state income tax famous tax protest in history, but today Bay Staters pay taxes on a lot more than tea. The most significant taxes in Massachusetts are the sales and income taxes, both of which consist of a flat rate paid by residents statewide.

mass state income tax

If you qualify for an extension, your return is due on or before October 15, 2024. With NerdWallet Taxes powered by Column Tax, registered NerdWallet members pay one fee, regardless of your tax situation.

mass state income tax

mass state income tax