Massachusetts Taxes

Massachusetts Tax Guide

This is a brief summary of the taxes that are levied on residents of the state of Massachusetts.

Massachusetts Income Tax

  • There are two taxes levied by the state of Massachusetts with regard to personal income tax.
  • The first tax is a 5.3% rate which is applied to wages, long-term capital gains, interest and dividends.
  • The second tax is that which is applied to long-and short-term capital gains that are levied on installment sales and collectibles before 1996 which are considered as “capital gain income”. The rate of this tax is 12%.
  • Individual gross annual personal income which is in excess of $8,000 is liable for a tax return.
  • Income tax returns should be filed using form 1 by 15th of April or on the next working day if the 15th falls on a weekend or public holiday.
  • The state extends “Limited Income Credit” for those taxpayers whose income is less than a particular amount. This is basis of tax reduction for those whose income falls very near to the limits defined under the Limited Income Credit scheme.

Massachusetts Sales Tax

  • The percentage of sales tax on retail sales is 6.25% in the state of Massachusetts.
  • There are other similar taxes levied in relation to sales but these are available with the official website of the Massachusetts Department of Revenue.
  • There is a system of “sales tax holiday” in Massachusetts. Under this scheme, individuals who purchase items under a value of $2,500 are exempt from paying sales tax for a few days each year. This period in the year 2011 was on the 13th and 14th of August.

Massachusetts Property Tax

  • All personal property, real and tangible in Massachusetts is liable for tax except for certain special exemptions.
  • The assessment for property tax is done by the city and town assessor and the tax is collected in the region where the property is located.
  • Different areas have different tax rates but generally speaking, property in a region of low tax rates may not mean that the tax paid is less.
  • Different categories of property are residential, commercial, open space, industrial and personal property.

Massachusetts Estate Tax

  • Massachusetts does not collect an inheritance tax. It does however collect an estate tax.
  • The details of this tax can be obtained for the website of the Department of Revenue of Massachusetts.

Where to mail FEDERAL IRS tax forms within Massachusetts:

IRS Form If You ARE NOT Enclosing a Payment, Use This Address: If you ARE Enclosing Payment, Use This Address:
1040: Department of the Treasury
Internal Revenue Service
Kansas City, MO  64999-0002
Internal Revenue Service
P.O. Box 37008
Hartford, CT 06176-0008
1040A: Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0015
Internal Revenue Service
P.O. Box 37008
Hartford, CT 06176-0008
1040EZ: Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0014
Internal Revenue Service
P.O. Box 37008
Hartford, CT 06176-0008

Massachusetts Tax Help

(617) 887-MDOR
toll-free in Massachusetts:
1-800-392-6089

Hearing Impaired:

TTY (617) 887-6140

Problem Resolution:
(617) 626-3833

Taxpayer Advocate:
(617) 626-2280