Taxes played a central role in last night’s presidential debate, as Hillary Clinton and Donald Trump presented contrasting visions for U.S. economic policy. The candidates mentioned taxes over 40 times throughout the...
The facts on Massachusetts’ Tax Climate
5.1%Individual Income TaxFlat rate
8%Corporate Income TaxFlat rate
6.25%Sales and Excise Taxes
Massachusetts's Individual Income Tax System
Massachusetts's individual income tax system consists of a flat rate of 5.1%. That rate ranks 28th highest among states levying an individual income tax. Massachusetts's state and local tax collections per person were $1,919 in 2013, which ranked 4th highest nationally.
50-State Table of Individual Income Tax Rates
Massachusetts's Corporate Income Tax System
Massachusetts's corporate income tax system consists of a flat rate of 8%. That rate ranks 13th highest among states levying a corporate income tax. Massachusetts's state and local corporate income tax collections per person were $281 in 2013 which ranked 7th highest nationally.
50-State Table of Corporate Income Tax Rates
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 does not levy additional local sales taxes. Massachusetts's state and local governments collect $773 per person in general sales taxes and $388 per person in excise taxes, for a combined figure of $1,161, which ranks 42nd highest nationally. Massachusetts's gasoline tax stands at 26.54 cents per gallon, 29th highest nationally, while its cigarette tax stands at $3.51, 4th highest nationally.
50-State Table of State and Local Sales Tax Rates
Massachusetts Property Tax Collections Relatively High
Massachusetts's state and local governments collected approximately $2,069 per person in property taxes in 2013, which ranks 8th nationally.
Tax Freedom Day Arrives on May 5th in Massachusetts
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Massachusetts taxpayers have to work until May 5th (47th earliest nationally) to pay their total tax bill.
Massachusetts's State and Local Tax Burden Ranks 12th
Massachusetts's 2012 tax burden of 10.3% ranks 12th highest in the nation, and is above the national average of 9.9%. Massachusetts's taxpayers pay $5872 per capita in state and local taxes.
Massachusetts's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Massachusetts's 2016 Business Tax Climate Index Ranks 25th
Massachusetts ranks 25th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (39th), individual income taxes (13th), sales taxes (18th), unemployment insurance taxes (47th), and taxes on property (46th), including residential and commercial property.
State Business Tax Climate Index (full study)
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