Massachusetts state taxes at a glance
| Individual income tax | Flat-rate income tax |
|---|---|
| Rate structure | A 5% rate on most income, plus a 4% surtax on income above a threshold of about $1.1 million (Mass.gov lists $1,107,750 for 2026). Short-term capital gains are taxed at 8.5%. Verify current-year figures. |
| Tax agency | Massachusetts Department of Revenue (DOR) |
| Main individual return | Form 1 (residents); Form 1-NR/PY (nonresidents and part-year residents) |
| Local income taxes | No local income taxes. Cities and towns levy property taxes, and may add local options on meals and rooms. |
| Sales tax | A 6.25% state rate with no local sales taxes on most goods. Cities and towns may add a local tax on restaurant meals. |
| Property tax | Billed by cities and towns. Proposition 2½ limits how much a community can raise its property tax levy each year; a Circuit Breaker income tax credit helps eligible older residents with high property tax or rent. |
| Retirement & Social Security | Massachusetts does not tax Social Security benefits. Other retirement income is generally taxable, and some public pensions have special rules; check DOR guidance. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the Massachusetts Department of Revenue (DOR) website.
How Massachusetts income tax works
Massachusetts taxes most income, including wages, interest, dividends and long-term capital gains, at 5%. The 2022 “Fair Share” constitutional amendment added a 4% surtax on taxable income above an indexed threshold, which Mass.gov lists as $1,107,750 for tax year 2026 (it was $1,083,150 for 2025 and $1,053,750 for 2024). Tax Foundation’s early-2026 table showed the 2025 threshold; the Department’s own rate page is the better source for the year you are filing. Taxpayers subject to the surtax must file and pay electronically, according to DOR guidance.
Massachusetts treats different kinds of income differently. Mass.gov’s rate table lists short-term capital gains from the sale of capital assets at 8.5% and gains on collectibles at 12% (subject to a 50% deduction), while long-term gains are taxed at the standard rate. This differs sharply from the federal system explained in our capital gains tax rates guide. The personal exemption survives in Massachusetts (Tax Foundation lists $4,400 for a single filer and $1,000 per dependent), and there is no standard deduction; instead, Massachusetts allows specific deductions (for example, for certain rent and medical expenses) listed in the Form 1 instructions.
Massachusetts also has a paid family and medical leave payroll contribution (Tax Foundation lists employee withholding of 0.46% of eligible wages), which is separate from income tax. The state estate tax applies to estates valued over $2 million, per Mass.gov. On the property side, Proposition 2½ limits how much a community can increase its property tax levy each year, though overrides can pass by local vote.
Filing your Massachusetts return and free options
The Department’s MassTaxConnect system lets you file a Massachusetts-only return for free if you qualify: you were a full-year resident, have filed a Massachusetts return before, and your needed schedules are supported; part-year and nonresidents may qualify if they filed a prior-year Massachusetts return for 2023 or later. The free service also applies when you need to file only to claim a Massachusetts credit. You must be registered on MassTaxConnect first. If you do not qualify, DOR lists approved e-file vendors, some with free tiers (but not part of the Free File Alliance).
The regular deadline matches the federal deadline (April 15 in most years), with a six-month extension to file available. See our extension guide for what an extension does and does not cover. For federal free options, see the free filing hub and state refund status.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things Massachusetts residents often ask about
- 4% surtax: applies to taxable income above an indexed threshold (about $1.1 million for 2026); e-filing and e-payment are required if it applies.
- Short-term gains at 8.5%: a higher rate than the 5% for long-term gains.
- Circuit Breaker credit: helps eligible older residents with high property tax or rent.
- MassTaxConnect registration: required before you can use the free state-only filing.
- Meals tax: restaurant meals are taxed at 6.25%, and local governments may add their own option.
Official Massachusetts links
- Massachusetts Department of Revenue
- Mass.gov: e-file and pay personal income taxes
- Mass.gov: tax rates
- Mass.gov: 4% surtax on taxable income
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
What is the Massachusetts income tax rate?
5% on most income, with an 8.5% rate on short-term capital gains and a 4% surtax on taxable income above about $1.1 million (Mass.gov lists $1,107,750 for 2026).
Can I file Massachusetts taxes for free?
MassTaxConnect offers free state-only e-filing for eligible residents, including full-year residents who previously filed in Massachusetts. You must be registered on MassTaxConnect.
Does Massachusetts tax Social Security?
No. Massachusetts does not tax Social Security benefits.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.