Personal Income Tax and Corporate Taxpayers in Presidentially Declared Disaster AreasIf you are in a Presidentially declared disaster area, no action is needed now on your Personal Income or Corporate Excise Tax obligations. We will issue relief for taxpayers following the Internal Revenue Service’s announced extensions for these payments and tax filings see TIR 08-19. Should you receive a future bill for any penalties or interest related to these filings, please file a dispute through your MassTaxConnect account or submit Form ABT .
The Massachusetts personal income tax rate is 5.1% – on both earned income (salaries, wages, tips, commissions) and unearned (interest, dividends and capital gains.). Certain capital gains are taxed at 12%.
An individual first calculates gross income which is income from whatever source derived including (but not limited to) the compensation for services, wages, pensions, business income, rents, royalties, dividends, interest, capital gains, alimony, annuities, etc.
Certain business and personal deductions as well as exemptions may reduce gross income to arrive at that income subject to tax.