Massachusetts Tax Calculator 2022-2023: Estimate Your Taxes

massachusetts tax rates

“Governor Healey is a strong supporter of paying workers a fair wage and will review any legislation that reaches her desk,” said Karissa Hand, a Healey spokesperson. Healey has said the wage floor should be adjusted “over time” to keep up with the cost of living, but she did not advocate for raising it before the legislative session ends in July. But legislative leaders have not signaled they have an appetite to pursue it. In a statement, a spokesperson for Senate President Karen Spilka noted she would review any proposals to increase the wage floor “should they move forward in the legislative process.” Aides to House Speaker Ronald Mariano did not respond to a request for comment. “We have an affordability crisis in Massachusetts, and it’s hitting low-wage workers the hardest,” said Chrissy Lynch, president of the Massachusetts AFL-CIO. Those changes, however, took their final steps in January 2023.

massachusetts tax rates

The DCTC is refundable but is not transferable, and is payable without interest. A taxpayer who is a non-resident throughout the entire taxable year cannot claim the credit. A taxpayer claiming the DCTC may not also claim the Household Dependent Tax Credit. Boston Harbor may be the site of the most 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.

Estimated Tax Payments

Meanwhile, of the 25 lowest-ranking states on the Index, 16 and D.C. If you’re a Massachusetts resident, you earn a wage in Massachusetts, and your gross income exceeds $8,000, you must generally file a Massachusetts personal income tax return by April 15th following the end of every tax year. A low-income housing credit is available to eligible corporations that invest in affordable rental housing (“Qualified Massachusetts Projects”) to the extent authorized by the Department of Housing and Community Development (“DHCD”). DHCD allocates the amount of credits a taxpayer can claim based on an annual aggregate statewide limit. Effective for tax years beginning on or after January 1, 2021 and ending on or before December 31, 2025.

This report shows the current and historical average single family tax bill for all cities and towns, including where the average falls (ranked highest to lowest) in the Commonwealth. Another story from the industry data that is less apparent in Census population massachusetts income tax rate data is regional competition, even among comparatively high-tax states. Vermont is first in the United Van Lines data but middle-of-the-pack for overall population change because the state benefited from outmigration from densely populated Northeastern cities.

Local receipts and revenue sources impacting taxation

Effective for tax years beginning on or after January 1, 2023, the statutory base amount has been doubled, resulting in an increase of the maximum credit to $2,590. The circuit breaker tax credit is claimed on Schedule CB. Massachusetts General Laws (“MGL”) ch 62C § 6 requires individuals to file their tax return (Form 1) on or before fifteenth day of the fourth month following the close of each taxable year.

Even the highest top marginal rate in that cohort—Maine’s 7.15 percent—is still lower than the average top rate in the bottom third of states, and lower than many of its Northeastern U.S. peers. These financial institutions and business corporations will apportion their income to Massachusetts using Schedule F. Effective for tax years beginning on or after January 1, 2023, the maximum amount of the lead paint tax credit has been doubled to $3,000 for each residential unit in which lead paint was deleaded. In addition, the maximum amount of the credit for residential units in which lead paint was partially covered or removed has been doubled to $1,000. But some parts of the law technically didn’t take effect until Monday, meaning residents can’t realize their full benefits until they file their 2024 taxes, likely in spring 2025.

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