Massachusetts State Income Tax
The Massachusetts State Income Tax system utilizes a flat tax rate of 5.3%. There are income tax exemptions for those whose yearly income is below a certain amount, but this amount changes from year to year.
Massachusetts has the 23rd highest tax rate in the United States, making it fairly average as far as taxes go.
The sales tax rate for the State of Massachusetts is 6.25%, and it applies to the sale of tangible personal property, excluding groceries, clothing (up to $175.00), and periodicals. In 2010, Massachusetts taxpayers chose to repeal the state tax on liquor. The meal tax in Massachusetts is the same as the Sales Tax, but some counties have chosen to add a 0.75% local tax, bringing it up to 7%.
Unless specifically exempted by statute, all real and tangible personal property in the state of Massachusetts is taxable. The property tax rates in Massachusetts rank 8th highest in the nation.
The Massachusetts State Tax law doesn’t have an inheritance tax, interestingly. There is a Massachusetts Estate Tax, but it’s limited, and related to federal state tax collection.
Earned Income Credit
If you qualify for the federal Earned Income Tax Credit, then you qualify for the Massachusetts State EIC. Even if you haven’t had any income tax withheld from your pay, or if you don’t owe any income tax, you can still qualify for the EIC.
One thing you should consider for filing your Massachusetts State Income Tax Return is which way you want to file it. Filing your return on paper by yourself can be difficult and confusing, and hiring a tax consultant can get pretty expensive. One of the cheapest and easiest ways to send in your tax return is to file online. You’ll get your refund much faster, and there are many cheap programs that can fill out your forms for you.