FAQ

Massachusetts income tax calculator

How much tax is deducted from a paycheck in MA?

Massachusetts is a flat tax state that charges a tax rate of 5.05%. That goes for both earned income (wages, salary, commissions) and unearned income (interest and dividends). No Massachusetts cities charge their own local income tax. How many allowances should you claim?

How much is tax in MA?

The Massachusetts (MA) state sales tax rate is currently 6.25%.

What capital gains are taxed at 12 in Massachusetts?

In Massachusetts, for short term capital gains (property held for one year or less is) the tax rate is 12% and for long term capital gain (property held more than one year) the tax rate is 5.2%. These rates apply to the current tax year and is subject to future change.

How do I figure out my taxable income?

Simply stated, it’s three steps. You’ll need to know your filing status, add up all of your sources of income and then subtract any deductions to find your taxable income amount.

How much is a bonus taxed in MA?

For 2017, your bonus will be taxed at the Massachusetts bonus tax rate of 5.1 percent. While that doesn’t sound like much, remember it is just the state bonus tax. At the federal level for 2017, you’ll owe 25 percent on your bonus, unless it exceeds one million dollars.

Do I have to pay Massachusetts state income tax?

As a nonresident, you need to file income tax returns with Massachusetts if your Massachusetts gross income (from sources within Massachusetts) is greater than either $8,000 or the prorated personal exemption you’re entitled to, whichever is less.

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What is the Massachusetts income tax rate for 2020?

For tax year 2019, Massachusetts had a 5.05% tax on both earned (salaries, wages, tips, commissions) and unearned (interest, dividends, and capital gains) income. The tax rate was lowered to 5% for tax years beginning January 1, 2020, and after. Certain capital gains are taxed at 12%.

Does Massachusetts have tax on clothing?

Clothing and footwear priced $175 or less per item/pair are generally exempt from Massachusetts sales tax use tax. Sales tax applies to any individual clothing item or pair of shoes priced above $175.

What is not taxed in Massachusetts?

Clothing: Most items that cost less than $175 are exempt from sales tax, including everyday shoes and even shoelaces (items such as athletic cleats and ski boots, however, are taxable). And for items that cost more than $175, only the amount above $175 is taxed. … That’s tax-free — but only if it’s a U.S. flag.

Who qualifies for no tax status in Massachusetts?

(Massachusetts AGI) is $8,000 or less if single, $14,400 or less plus $1,000 per dependent if head of household, or $16,400 or less plus $1,000 per depen- dent if married filing a joint return, you qualify for No Tax Status and are not required to pay any Massachu- setts income taxes.

Can you deduct rent from your taxes in Massachusetts?

Overview. A deduction is allowed for rent paid by the taxpayer during the tax year to a landlord for a principal residence located in Massachusetts. This deduction is limited to 50% of the rent paid and cannot exceed a total deduction of $3,000.

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Is unemployment taxable income in Massachusetts?

State Taxes on Unemployment Benefits: Massachusetts taxes unemployment benefits to the same extent they are taxed on your federal return. State Income Tax Range: Massachusetts has a flat rate of 5.05% for most classes of taxable income (5% starting with the 2020 tax year).

How much does the average US citizen pay in taxes?

Combining direct and indirect taxes, as well as taxes from state and local government, the average American family paid $15,748 in taxes in 2018.

How do I figure out my monthly income?

Multiply your hourly wage by how many hours a week you work, then multiply this number by 52. Divide that number by 12 to get your gross monthly income. For example, if Matt earns an hourly wage of $24 and works 40 hours per week, his gross weekly income is $960.

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