The most significant taxes in Massachusetts are the sales and income taxes, both of which consist of a flat rate paid by residents statewide. While the state sales tax of 6.25% is among the nation’s highest, there are no local sales taxes levied in Massachusetts. For tax years beginning on or after January 1, 2024, married couples must file a joint personal income tax return for any year in which they file a joint federal income tax return, unless an exception applies. See TIR 24-4 and 830 CMR62.5A(11), Non-Resident Income Tax for additional information.
Prior Year Income & All DOR Forms
Online Taxes at OLT.com would like to offer free federal and free state online tax preparation and e-filing if your Federal Adjusted Gross Income is $48,000 or less, regardless of age. You can use MassTaxConnect for free if accounting you need to file a return to qualify for a MA credit. Delivering tax services, insights and guidance on US tax policy, tax reform, legislation, registration and tax law. Willful failure to collect and pay over taxes is also a felony and is punishable by a fine of up to $10,000 and/or imprisonment of up to 5 years. Willful tax evasion is a felony punishable by a fine of up to $100,000 for individuals or $500,000 for corporations and/or imprisonment of up to 5 years.
- Instead, state taxpayers can determine if they qualify for certain tax exemptions to reduce the amount of tax owed.
- Massachusetts currently has no reciprocal agreements with any other states.
- An exception is allowed where the spouses have different tax years or residencies, and their joint Massachusetts income is equal to or below the surtax threshold ($1,053,750 for tax year 2024).
- It’s about understanding the tax implications of your financial decisions, so you can minimize your taxes and, ultimately, keep more of your hard-earned money.
- Across all individual tax filers throughout the US, the average tax cut per taxpayer will be over $3,700 in 2026.
Massachusetts Minimum Wage Rates
The total penalty depends on income and only apply to individuals with incomes more than 150% of the federal poverty level. Fiscal year filers must determine due dates based upon tax period end date. Extension and estimated payment due date information is included below.
Massachusetts Payroll Tax Facts
Where both spouses are (1) nonresident for the full tax year or (2) part-year residents with the same residency period, they must file a Form 1-NR/PY and select Married Filing Jointly. Since both spouses have the same residency status/periods they can file the return as is. 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. If you filed on QuickBooks ProAdvisor paper last year, now is a good time to make the change to e-file. Tax burdens rose across the country as pandemic-era economic changes caused taxable income, activities, and property values to rise faster than net national product.
Form 63-20P: Due on or before October 15, 2025
She is a licensed insurance producer, and previously was an insurance writer for Bankrate specializing in home, auto and life insurance. She earned her Bachelor of Arts in creative writing at the University of California, Riverside. You don’t necessarily have to live in Massachusetts to pay Massachusetts state income tax. A standard payment voucher should not be used as a substitute for an estimated payment voucher. Spouses with different residency or periods of ma income tax rate residency should file as set out below if they have combined income subject to tax in excess of the surtax threshold amount. These documents should be submitted using the “Submit Surtax Return for Married Filing Joint” link on the home page on MassTaxConnect.
- See Employees of Interstate Motor and Rail Carriers for more information.
- Since both spouses have the same residency status/periods they can file the return as is.
- Understanding the 2025 tax brackets in Massachusetts is essential for effective financial planning.
- You should use this reported amount to calculate withholding by adding the reported tips to the employee’s pay.
- Unlike estimated payment vouchers, which have specific quarterly due dates, standard payment vouchers should only be used to submit a payment due with a tax return or amended tax return.