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The facts on Massachusetts’ Tax Climate
5.2%Individual Income TaxFlat rate
8%Corporate Income TaxFlat rate
6.25%Sales and Excise Taxes
Massachusetts's Individual Income Tax System
Massachusetts's personal income tax system consists of a flat rate of 5.2%. That rate ranks 21st lowest among states levying an individual income tax. Massachusetts's state and local income tax collections per person were $1761 in 2011 which ranked 4th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Massachusetts's Corporate Income Tax System
Massachusetts's corporate income tax system consists of a flat rate of 8%. That rate ranks 16th highest among states levying a corporate income tax. Massachusetts's state and local corporate income tax collections per person were $293 in 2011 which ranked 5th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Massachusetts Sales and Excise Taxes
Massachusetts levies a 6.25% general sales or use tax on consumers, which is above the national median of 5.95%. Massachusetts's state and local governments collect $747 per person in general sales taxes and $368 per person in excise taxes, for a combined figure of $1115, which ranks 18th lowest nationally. Massachusetts's gasoline tax stands at 26.5¢ (25th lowest nationally), while its cigarette tax stands at $3.51 (2nd highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Massachusetts Property Tax Collections Relatively High
Massachusetts's state and local governments collected approximately $2018 per person in property taxes, which ranks 9th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 29th in Massachusetts
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Massachusetts taxpayers worked until April 29th (5th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Rhode Island, April 23rd (ranked 12th latest nationally); Connecticut, May 9th (ranked latest nationally); New York, May 4th (ranked 3rd latest nationally); New Hampshire, April 19th (ranked 17th latest nationally); and Vermont, April 19th (ranked 17th latest nationally).
Massachusetts's State and Local Tax Burden In Line with National Average
Massachusetts's 2011 tax burden of 10.28% ranks 11th highest out of 50 states, and is above the national average of 9.8%. Massachusetts's taxpayers pay $5586 per capita in state and local taxes.
Massachusetts's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Massachusetts's 2014 Business Tax Climate Index Ranks 25
Massachusetts ranks 25th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Rhode Island, 46th, Connecticut, 42nd, New York, 50th, New Hampshire, 8th, and Vermont, 45th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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