Massachusetts State Taxes: What Youll Pay in 2025

A short-term capital gain is a profit from the sale of an asset you’ve owned for one year or less. Most refunds are claimed on an original return and will be issued automatically by the Department. For e-filed returns the turnaround time is about 6 weeks; but for paper returns it could take up to 10 weeks. You must claim your refund or credit within a certain time period, as further detailed below. Also, the Department of Revenue must issue refunds within a certain time period or pay interest on the amount of the refund. This page contains important information on the time limitations for claiming a refund and on the calculation of interest.

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So that means if you bought an item of clothing costing $250, you’d have to pay a sales tax of 6.25% on the $75 over the threshold. Taxpayers are also entitled to deductions, such as childcare expenses, college tuition, and rental payments. Taxpayers can also get a personal exemption to reduce their overall tax bill. Forty-four states levy a corporate income tax, with top rates ranging from a 2.25 percent flat rate in North Carolina to a 11.5 percent top marginal rate in New Jersey. An overpayment claimed on a return may be applied as a credit for your next year’s estimated tax or Grocery Store Accounting you may request that it be refunded to you.

February 2025 Mid-Month Revenue Report

The law also got rid of the two-dependent cap on the credit when it was first signed. So this spring, for example, a family with four dependent children could claim $1,760, up from $360 before the law was passed. All in all, an estimated 565,000 families are expected to benefit. The federal standard deduction for a Head of Household Filer in 2025 is $ 22,500.00. The following tax tables are supported by iCalculator™ US as part of the suite of free tax tools available in the US Tax HUB we provide for Massachusetts.

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The massachusetts income tax median property tax bill in the state is $5,584 – one of the highest in the country. If you are sending a paper tax return and a paper check together, no payment voucher is required. Newspapers, admission to cultural and sporting events, and most healthcare products are also exempt.

Massachusetts State Income Tax Tables in 2025

• If you’re a full-year resident with an annual Massachusetts gross income of more than $8,000, you must file a Massachusetts tax return.
• Personal property such as cars and boats are typically taxed locally through excise taxes.
• As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers.
• If a vendor is not listed, go to their website to confirm if they offer the tax services you need.
• The law also got rid of the two-dependent cap on the credit when it was first signed.
• Property taxes vary across different municipalities in Massachusetts.

The EITC rates and thresholds are adjusted annually to reflect changes in the economy and cost of living. For the tax year 2025, these adjustments ensure that the credit remains aligned with income statement the current economic conditions, providing targeted support to eligible taxpayers. Understanding the latest EITC rates and thresholds is crucial for taxpayers who wish to maximize their potential credit and accurately plan their finances. The EITC can have a significant impact on a family’s annual budget, offering relief and financial stability to millions of Americans each year including those in Massachusetts. The Income tax rates and personal allowances in Massachusetts are updated annually with new tax tables published for Resident and Non-resident taxpayers.

State Corporate Income Tax Rates and Brackets, 2024

Recent years have seen a wave of significant tax reforms, and the changes scheduled for 2025 show that these efforts have not let up. Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections. Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections). You may also qualify for certain personal income tax credits, which can reduce the amount of tax you owe.

Taxes

Enter your filing status on either Form 1 or 1-NR/PY, Line 1, and fill in the appropriate oval. Enter your spouse’s Social Security number in the appropriate space at the top of the return under taxpayer’s Social Security number. If you’re married filing joint, both spouses must sign the return. If an extension payment is required to reach the 80% threshold, you can pay electronically. If you need to pay $5,000 or more to qualify for an extension, you are required pay electronically. If you are required to file Form M-4768 electronically, register on MassTaxConnect to file your extension.

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If you can’t make your personal income tax payment in full, pay as much as you can with your tax return. Eligible candidates can get a refund on property taxes up to $1,200. Property taxes vary across different municipalities in Massachusetts.