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Massachusetts Tax Tables 2024 Tax Rates and Thresholds in Massachusetts

mass tax bracket

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 ma state income tax handful of states that levy a flat rate. But you may pay federal taxes on a portion of your Social Security benefits, depending on your income.

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 https://www.bookstime.com/ 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in these retirement accounts grow tax-deferred, meaning that taxes on investment gains are not paid until the money is withdrawn during retirement, ideally at a lower tax rate.

1 – Massachusetts Standard Deduction

The federal standard deduction for a Head of Household Filer in 2023 is $ 20,800.00. The federal standard deduction for a Head of Household Filer in 2024 is $ 21,900.00. Sale, rental or use of tangible personal property, including cigarettes, telecommunications services and certain fuel. View how much tax you may pay in other states based on the filing status and state entered above. If a portion of your expenses was reimbursed by your employer, the total paid amount that you claim must be reduced by the reimbursement amount. 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.

Unlike other states, Massachusetts does not have a state standard deduction. Instead, state taxpayers can determine if they qualify for certain tax exemptions to reduce the amount of tax owed. Anyone earning over $8,000 in Massachusetts annual gross income is required to file a state tax return.

Massachusetts Median Household Income

Massachusetts has its own estate tax, which applies to any estate above the exclusion amount of $2 million. If the estate has a gross value (before any deductions) over that level, a Massachusetts estate tax return must be filed. The mechanism of FICA taxation involves a dual contribution system where both the employer and the employee contribute a set percentage of the employee’s income towards these programs.

  • Massachusetts has a flat income tax rate of 5%, but charges a 4% surtax on income over $1 million.
  • The credit can also be claimed by foster parents as well as other relatives, such as grandparents or stepparents, as long as the child meets the IRS’ eligibility requirements.
  • This is per person (not household), so if your  spouse turned 65 by Jan. 1, they can also claim the exemption.
  • Understanding the latest EITC rates and thresholds is crucial for taxpayers who wish to maximize their potential credit and accurately plan their finances.
  • This tool is freely available and is designed to help you accurately estimate your 2025 tax return.
  • Veterans Administration disability compensation is also not taxed in the state.Spouses of military personnel may be eligible for exemptions.