Massachusetts

 
 

The facts on Massachusetts’ Tax Climate

Massachusetts's Individual Income Tax System
Massachusetts's personal income tax system consists of a flat rate of 5.25%. That rate ranks 22nd lowest among states levying an individual income tax. Massachusetts's income tax collections per person were $1549 in 2010 which ranked 5th 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 15th highest among states levying an corporate income tax. Massachusetts's corporate tax collections per person were $281 in 2010 which ranked 4th 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 6%. Massachusetts's state and local governments collect $708 per person in general sales taxes and $364 per person in excise taxes, for a combined figure of $1072, which ranks 9th lowest nationally. Massachusetts's gasoline tax stands at 23.5¢ (22nd lowest nationally), while its cigarette tax stands at $2.51 (9th 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 $1986 per person in property taxes, which ranks 8th highest nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on April 25th 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 2013, Massachusetts taxpayers worked until April 25th (4th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Rhode Island, April 19th (ranked 12th latest nationally); Connecticut, May 13th (ranked latest nationally); New York, May 6th (ranked 2nd latest nationally); New Hampshire, April 15th (ranked 20th latest nationally); and Vermont, April 14th (ranked 25th latest nationally).

Full study of Tax Freedom Day, nationwide and in each state

Massachusetts's State and Local Tax Burden Above National Average

Massachusetts's 2010 tax burden of 10.43% ranks 8th highest out of 50 states, and is above the national average of 9.9%. Massachusetts's taxpayers pay $5422 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 2013 Business Tax Climate Index Ranks 22

Massachusetts ranks 22nd 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, 40th, New York, 50th, New Hampshire, 7th, and Vermont, 47th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)

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