Massachusetts has a flat 5.00 percent individual income tax rate, with a 4 percent surtax on income over $1 million (adjusted for inflation), resulting in a top rate of 9.00 percent. Massachusetts has a flat 8.00 percent corporate income tax rate, a 6.25 percent state sales tax rate, and an average combined state and local sales tax rate of 6.25 percent. Massachusetts has a 1.00 percent effective property tax rate on owner-occupied housing value. Massachusetts has an estate tax. Massachusetts’s gas tax is 27.56 cents per gallon, and its cigarette excise tax is $3.51 per pack of 20 cigarettes.
Massachusetts raises tax revenue primarily through individual income taxes (34.3 percent of total state and local tax revenue), property taxes (33.1 percent), and general sales taxes (14.6 percent). Massachusetts collects $9,076 in state and local tax collections per capita, carries $13,400 in state and local debt per capita, and has a 76 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. Use the tabs below to compare Massachusetts taxes with other states and to see how Massachusetts raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
Get facts about taxes in your state and around the US
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
Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
2 min read
Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
9 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
18 min read
Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
5 min read
Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
9 min read
When examining tax burdens on businesses, it is important to consider both federal and state corporate taxes. Corporate taxes are one of the most economically damaging ways to raise revenue and are a promising area of reform for states to increase competitiveness and promote economic growth, benefiting both companies and workers.
3 min read
Some tax ballot initiatives will be straightforward, some will be complex, and—let’s be honest—some will be a drafting nightmare.
5 min read
Property taxes are the primary tool for financing local government and generating state-level revenue in some states as well.
5 min read
Massachusetts’ competitive tax advantage in New England is driven primarily by its competitive individual income tax rate and its sales and use tax structure. If the Commonwealth changes its tax code in ways that narrow the base or increase the rate, it cedes greater tax competitiveness to other states, regionally and nationally.
34 min read
Will states consider student loan forgiveness a taxable event? In some states, the answer could be yes.
5 min read
The mix of tax sources states choose can have important implications for both revenue stability and economic growth, and the many variations across states are indicative of the different ways states weigh competing policy goals.
29 min read
The FDA’s proposal to ban flavored cigars would carry significant revenue implications for many state governments.
7 min read
However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
43 min read
While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts.
12 min read
If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
4 min read
