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 1.04 percent effective property tax rate on owner-occupied housing value.
Massachusetts has an estate tax. Massachusetts has a 27.37 cents per gallon gas tax rate and a $3.51 cigarette excise tax rate. The State of Massachusetts collects $8,110 in state and local tax collections per capita. Massachusetts has $14,534 in state and local debt per capita and has a 69 percent funded ratio of public pension plans. Massachusetts’s tax system ranks 41st overall on the 2025 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 towards 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 2024: 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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Graduated corporate rates are inequitable—that is, the size of a corporation bears no necessary relation to the income levels of the owners.
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