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?
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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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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.
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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?
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
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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.
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A recent JAMA Internal Medicine study on the impact of the Massachusetts flavored tobacco ban indicates that it has been a success. Unfortunately, it left out a very important piece of information: cross-border trade.
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States are unprepared for the ongoing shift to remote and flexible work arrangements, or for the industries and activities of today, to say nothing of tomorrow. In some states, moreover, existing tax provisions exacerbate the impact of high inflation and contribute to the supply chain crisis.
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The pandemic has accelerated changes in the way we live and work, making it far easier for people to move—and they have. As states work to maintain their competitive advantage, they should pay attention to where people are moving, and try to understand why.
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While there are many ways to show how much is collected in taxes by state governments, our State Business Tax Climate Index is designed to show how well states structure their tax systems and provides a road map for improvement.
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