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Massachusetts Income Tax
Massachusetts has two flat income tax rates. The first is a 5.3% flat tax placed on income sourced from interest, dividends, long-term capital gains, and wages. The second is a 12% flat tax placed on income from short-term capital gains, long-term and short-term capital gains on collectibles and installment sales before 1996, that we at that time classified as capital gain income. Any resident who has income that exceeds $8,000 must file a tax return. Income taxes are due by April 15th. Massachusetts offers a Limited Income Credit to taxpayers who make less than the filing threshold for their status. This credit is not applicable for those who are married and elect to file separately.
Massachusetts Tax Filing Guide
Here are detailed instructions for filing taxes in the state of Massachusetts.
Consider using TurboTax to E-File your Massachusetts taxes.
Massachusetts Residents
If you lived in Massachusetts for more than 183 days, or if your domicile (legally permanent) residence is in Massachusetts, you are a full year resident of Massachusetts. Massachusetts residents who made more than $8,000 in gross income must file a resident income tax return. If you are entitled to a refund of withholdings or estimates you may want to file a return, because you are required to file to receive a refund. To file taxes with Massachusetts as a resident use Form 1. See the attached instructions and tables for more information.
Related Tax Forms
- Form 1 - Massachusetts Individual Resident Income Tax Return
Part-Year Massachusetts Residents
If you either became or ended your residency with Massachusetts during the tax year, you are a part-year resident of Massachusetts. If you earned more than $8,000 during the period of time that you were a Massachusetts resident you must file a tax return with Massachusetts. Part-year residents will need to file their returns using Form 1 NR/PY (see attached). See the attached instructions for additional assistance in filing your Massachusetts return.
Related Tax Forms
- Form 1-NR/PY - Massachusetts Individual Part-year and Non-resident Income Tax Return
Massachusetts Residents who work in another state
A credit for taxes paid to another jurisdiction, which were reported and taxed on a Massachusetts return, is allowed for Massachusetts’s residents and part-year residents. Jurisdictions that the credit applies to include all U.S. states and territories of Canada. The federal Foreign Tax Credit on U.S. Form 1116 must be used to reduce taxes paid to Canada. The credit is only for taxes paid to one of the places listed above not for taxes paid to any city or local tax, the U.S. government, or to a foreign country other than Canada. Interest and penalties paid to another jurisdiction also do not qualify for the credit.
If you are a Massachusetts resident you need to use the Schedule Z, Line 9 Worksheet - Income Tax Paid to Another Jurisdiction (see attached) to file for the taxes paid to another jurisdiction credit. If you are a part-year resident you will need to use Schedule F, Credit for Income Taxes Paid to Other Jurisdictions (see attached) to receive the credit. Nonresidents do not need the credit and thus are not eligible for it. The credit should be calculated using the tax due, not tax withheld which may be an entirely different number. The computation is found by comparing the Massachusetts income tax on income reported to the other jurisdiction, to the actual tax paid to the other jurisdiction. The credit will be limited to the smaller of these two numbers. In calculating the allowable credit, a separate calculation should be prepared for each item of income taxed at a different rate.
Related Tax Forms
- Schedule Z - Massachusetts Individual Income Tax Credits Schedule
- Schedule F-2 - Massachusetts Income Apportionment Schedule
Non-Residents who work in Massachusetts
Nonresidents of Massachusetts whose income from Massachusetts’s sources exceeds either $8,000 or their prorated personal exemption, must file a Massachusetts nonresident income tax return. To file a nonresident return with Massachusetts use Form 1 NR/PY- Nonresident/Part-Year Resident Individual Income Tax Return.
The prorated personal exemption can be found using this equation:
Personal exemption per filing status x ((Massachusetts sourced income)/(gross income))
Related Tax Forms
- Form 1-NR/PY - Massachusetts Individual Part-year and Non-resident Income Tax Return
Non-Residents who sold property in Massachusetts
Nonresidents of Massachusetts whose income from Massachusetts’s sources exceeds either $8,000 or their prorated personal exemption, must file a Massachusetts nonresident income tax return. To file a nonresident return with Massachusetts use Form 1 NR/PY- Nonresident/Part-Year Resident Individual Income Tax Return.
The prorated personal exemption can be found using this equation:
Personal exemption per filing status x ((Massachusetts sourced income)/(gross income))
Related Tax Forms
- Form 1-NR/PY - Massachusetts Individual Part-year and Non-resident Income Tax Return
Massachusetts State Tax Forms
- Schedule F-2 - Massachusetts Income Apportionment Schedule
- Schedule Z - Massachusetts Individual Income Tax Credits Schedule
- Form 1 - Massachusetts Individual Resident Income Tax Return
- Schedule HC - Massachusetts Health Care Information Supplemental Schedule
- Form 1-NR/PY - Massachusetts Individual Part-year and Non-resident Income Tax Return
Relevant Links
- State of Massachusetts Tax Website - Official Site
- State of Massachusetts E-File Service - Offered by Massachusetts's Official Website
- Additional Tax Forms - A Comprehensive Collection of Massachusetts Tax Forms
Massachusetts Mailing Address
Wondering where to mail your Massachusetts taxes? Here's the address:Refunds:
Massachusetts DOR
PO Box 7000, Boston, MA 02204
Dues:
Mass. DOR
PO Box 7003
Boston, MA 02204
Massachusetts Sales Tax
Massachusetts has a 6.25% sales tax on all tangible property sold in retail sales within Massachusetts.
