How does Massachusetts’s tax code compare? Massachusetts has a graduated state individual income tax, with rates ranging from 5.00 percent to 9.00 percent. Massachusetts has an 8 percent corporate income tax rate. Massachusetts also has a 6.25 percent state sales tax rate and does not have local sales taxes. Massachusetts has a 0.97 percent effective property tax rate on owner-occupied housing value.
Massachusetts has an estate tax. Massachusetts has a 27.47 cents per gallon gas tax rate and a $3.51 cigarette excise tax rate (per pack of 20 cigarettes). The State of Massachusetts collects $9,341 in state and local tax collections per capita. Massachusetts has $12,891 in state and local debt per capita and a 77 percent funded ratio of public pension plans. Massachusetts’s tax system ranks 43rd overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Massachusetts is no exception. The first step toward understanding Massachusetts’s tax code is knowing the basics. How does Massachusetts collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2025: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections.
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
122 min read
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