Massachusetts State Tax: Rates and Who Pays in 2023-2024

Massachusetts is one of a handful of states with a flat income tax rate.

For tax year 2023, people who filed a Massachusetts tax return saw the entirety of their taxable income charged at a flat 5% rate. An additional 4% tax on 2023 income over $1 million was also levied, making the highest tax rate in the state 9%.

The 2023 tax filing deadline in Massachusetts was April 17, 2024. If you met certain criteria and paid 80% of your total tax bill before this date, a six-month extension to Oct. 15, 2024, was automatically provided.

Massachusetts state income tax rates and tax brackets

For tax year 2023 (taxes filed in 2024), Massachusetts’ state income tax rate was 5% on annual gross income over $8,000. Gross income in Massachusetts includes both earned income, such as salaries, wages, tips and commissions, and unearned income, such as interest, dividends and capital gains.

The exceptions to Massachusetts’ 5% tax rate are certain types of capital gains. Short-term capital gains are taxed at 8.5%. Long-term gains from sales of collectibles are taxed at 12%^[0]

» MORE: See what federal tax bracket you’re in

Do I have to pay Massachusetts state income tax?

Anyone earning over $8,000 in Massachusetts annual gross income is required to file a state tax return. Those earning less than this amount do not need to file a return, but they can still file a return to claim refundable tax credits. This $8,000 income threshold is on a per-person basis, giving married couples the option to file jointly or separately.

If you were required to file a Massachusetts state tax return and you missed the April 17 deadline, the state's Department of Revenue encourages you to pay online as soon as possible and you owe money,

» Need help? How to find a tax preparer near you

Am I a resident for Massachusetts state income tax purposes?

Resident status rules

There are two ways to be considered a full-time resident of Massachusetts. The first is to live in Massachusetts for the entire tax year, while the second is to maintain a home in Massachusetts and spend more than 183 days of the tax year in the state.

Part-year resident status rules

Part-year residents refer to individuals who either moved to the state and became residents or moved out of the state and ended their residencies within the tax year.

Nonresident status rules

If neither of the above applies, then an individual is considered a nonresident of Massachusetts. A state tax return is still required if your Massachusetts annual gross income exceeds $8,000 or the prorated personal exemption, whichever is less^[0]

What is Massachusetts' standard deduction?

Unlike other states, Massachusetts does not have a state standard deduction. Instead, state taxpayers can determine if they qualify for certain tax exemptions to reduce the amount of tax owed.

Anyone who files a Massachusetts state tax return is given a personal exemption amount based on their tax filing status. Taxpayers may also be eligible for additional exemptions, such as those for having qualifying dependents or for having paid certain types of medical or dental costs throughout the tax year. Mass.gov has the full details.

» MORE: What is the standard deduction, and when to take it

What’s the deadline for filing Massachusetts state income taxes?

The filing deadline for 2023 Massachusetts state income tax returns was April 17, 2024. To have qualified for a six-month extension, you must have paid at least 80% of the total amount of tax owed by that deadline. If you didn't owe any taxes and didn't file by the deadline, an extension to October is automatically granted.

The state extension deadline follows the federal extension deadline set by the IRS, which for the 2023 tax year is Oct. 15, 2024. Keep in mind that being granted a federal tax extension does not grant you a state tax extension in Massachusetts.

Those who have been affected by a federally declared disaster automatically receive an extension for filing tax returns, paying their tax bill and filing a Massachusetts tax extension^[0]

What if I missed the Massachusetts state tax deadline?

If you missed the deadline to file and didn't apply for an extension, your return is considered late. The state levies both late-filing penalties and late payment penalties. Late returns are charged a fee of 1% per month of the tax due, up to a maximum of 25%, plus interest^[0]

4 things to know about Massachusetts state tax

1. Free tax filing is available to eligible Massachusetts residents through MassTaxConnect.

2. The Massachusetts Department of Revenue encourages taxpayers to file and pay their tax returns online. Filing can be done through a tax vendor or MassTaxConnect. Paper filing options are also available.

3. Massachusetts offers payment plans for people who can't afford their tax bills. If you owe $5,000 or less, you can sign up for a plan online. People with higher tax bills should reach out to the Revenue Department’s collections office for more information.  

4. Check the status of your Massachusetts state tax return online or by phone at 617-887-6367.

» MORE: How to track the status of your federal and state refunds