Massachusetts Tax Rates

This page provides a graph of the current tax rates in Massachusetts.

Updated: January 25, 2024

Rates

For due dates, go to DOR Tax Due Dates and Extensions

Type of Tax

Measure

Rate

Personal income and Fiduciary income for MA residents, nonresidents, and part-year residents

 

Long term capital gains from
dividends, interest, wages, and other income

5.00% 

For income exceeding $1,053,750, there is an additional surtax of 4%.

Note: For tax year 2023, for income exceeding $1,000,000, there is an additional surtax of 4%.

  Long-term gains from sale or exchange of collectibles

12.00% (subject to a 50% deduction)

For income exceeding $1,053,750, there is an additional surtax of 4%.

Note: For tax year 2023, for income exceeding $1,000,000, there is an additional surtax of 4%.

  Short-term capital gains from the sale or exchange of capital assets
 

8.5%

For income exceeding $1,053,750, there is an additional surtax of 4%.

Note: For tax year 2023, for income exceeding $1,000,000, there is an additional surtax of 4%.

     
Withholding Wages

5.00% 

For wages exceeding $1,053,750, there is an additional surtax of 4%.

     

Estate
 

Federal taxable estate
Massachusetts real and tangible property

Note:  Estates valued under $2 million are not subject to the estate tax

Marginal Rates

0.8% - 16%

 

     

Alcoholic Beverages

Malt (31-gal. bbl.)

$3.30

Alcoholic Beverages

Cider 3%-6% (wine gal.)

$0.03

Alcoholic Beverages

Still wine, including vermouth (wine gal.)

$0.55

Alcoholic Beverages

Sparkling wine (wine gal.)

$0.70

Alcoholic Beverages

Alcoholic beverages 15% or less (wine gal.)

$1.10

Alcoholic Beverages

Alcoholic beverages more than 15%-50% (wine gal.)

$4.05

Alcoholic Beverages

Alcoholic beverages more than 50% of alcohol (proof gal.)

$4.05

     

Cigarettes

20-count package

$3.51

Smokeless tobacco

Smokeless tobacco (percentage of price paid by licensee)

210%

Cigars & smoking tobacco

Cigars & smoking tobacco (percentage of price paid by licensee)

40%

Electronic Nicotine Delivery Systems      Wholesale Price 75.00%
     

Deeds

Sales price (less mortgage assumed) of real estate

$2.28 per $500

Visit TIR 19-14 for surcharge information.

     

Motor fuels

Gasoline and diesel fuel per gallon
 

$0.24


 

Motor fuels Propane, liquefied gas, etc. (no minimum) 29.2%
Motor fuels Aviation (10¢ minimum) 38.2%
Motor fuels Jet fuel at local option (5¢ minimum) 17.3%
     
Room occupancy State Room Occupancy The state’s room occupancy excise tax rate is 5.7%.  Note that while the statute provides for a 5% rate, an uncodified surtax adds .7% to that rate.
Room occupancy
Local Option
In addition to the state excise, Massachusetts cities and towns are permitted to charge a local room occupancy excise tax up to 6% (6.5% for Boston). 
Room occupancy Convention Center Financing In the cities of Boston, Worcester, Cambridge, Springfield, West Springfield, and Chicopee, an additional 2.75% tax is charged for convention center funding. See TIR 05-01 for more information.
Room occupancy Cape Cod and Islands Water Protection Fund In Barnstable, Nantucket and Dukes Counties an additional 2.75% may be charged for the Cape Cod and Islands Water Protection Fund beginning July 1, 2019.  Currently this applies for all Barnstable County municipalities.
Room occupancy Short-term Rentals Community Impact Fee Beginning July 1, 2019, for short-term rentals only, cities and towns are permitted to charge an additional community impact fee up to 3% if an operator has more than one property in that locality or is renting an owner-occupied 2 or 3 family house on a short-term rental basis. 
     

Club alcoholic beverages

Gross receipts

0.57%

     

Sales and use tax

Sale, rental or use of tangible personal property, including cigarettes, telecommunications services and certain fuel.

6.25%

Sales tax on marijuana

Adult use marijuana is subject to:

  • a state sales tax
  • a state excise tax
  • a local option for cities or towns


6.25% (state sales tax)
10.75% (state excise tax)
up to 3% (local option for cities and towns)

Sales tax on meals, prepared food and all beverages

All "restaurant" food and on-premises consumption of any beverage in any amount.

6.25%
 

A city or town may also charge a local sales tax on the sales of restaurant meals.
Visit TIR 09-13.

Direct broadcast satellite service

Gross revenues

5%

     

General Business and manufacturing corporations

Net income
Tangible property or net worth

Minimum $456

8.0%
$2.60 per $1,000

 

     

S Corporations subject to G.L. c. 63 §§ 32D, 39 that are not Financial Institutions

Total receipts $6 million or more but less than $9 million (net income)

2% 

 

Total receipts $9 million or more (net income)

3% 

  Net income taxable at the federal level including certain built-in gains that are taxable at the federal level under IRC § 1374 and on passive investment income taxable at the federal level under IRC § 1375. 8%

 

Tangible property or net worth

$2.60 per $1,000

 

Minimum

$456

Security corporation

 


Gross income, Non bank holding company

Gross income, Bank holding company

Minimum


1.32%


0.33%


$456

     

Financial institutions

Net income

Minimum

9%

$456

     

S Corporations that are Financial Institutions

Total receipts $6 million or more but less than $9 million (net income)

2.67% 

 

Total receipts $9 million or more (net income)

4% 

  Net income that is taxable at the federal level. 9%

 

Minimum

$456

     

Ship excise tax

Value (equity interest) of the corporation's interest in a ship or vessel engaged in interstate or foreign trade.

0.33333%

     

Insurance company
Domestic life


Premiums


2.0%

Foreign life

Premiums

2.0%

Domestic casualty

Premiums

2.28%

Domestic casualty

Gross investment income

0.0%-1.0%

Foreign casualty

Premiums

2.28%

Ocean marine

Underwriting profit

5.7%

     

Motor vehicles garaged outside Massachusetts

90% to 10% of manufacturer's list price

$25 per $1,000

     

Boston sightseeing tour

Ticket purchase or any water- or land-based sightseeing tourist venue or entertainment cruise or trolley tour originating or located in Massachusetts and conducted partly or entirely in Boston.

5%

Boston vehicular rental transaction surcharge

Each vehicular rental transaction contract executed in Boston.

 

 

$10

In addition to Boston, there is a $10 surcharge in Revere and a statewide $2 surcharge. See TIR 19-4 and TIR 05-14.

     

Parking facilities surcharge in Boston, Springfield and/or Worcester

Parking facilities built in conjunction with or as part of a project authorized by the Convention Center Financing Act in Boston, Springfield or Worcester.

$2 per vehicle per day

 

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