But in Massachusetts, where the state’s largest public transit system estimates a yawning budget gap of $628 million come July, top leaders have failed to advance any long-term solutions. Governor Maura Healey has appointed a task force to look into the problem and report back — by December. Notably, Massachusetts has the highest maximum marginal tax bracket in the United States. You can learn more about ma state income tax how the Massachusetts income tax compares to other states’ income taxes by visiting our map of income taxes by state. Under existing state law, Massachusetts refunds taxpayers if more than a specified amount of tax revenue is collected during a fiscal year. Massachusetts is still required to refund excess tax revenue, but under the new bill, that excess amount will be evenly distributed among taxpayers.

• Healey’s transportation task force has not yet scheduled its first meeting.
• Beginning in 2023, an additional 4% tax is imposed on income over $1 million.
• For the first time in 20 years, the MTA released a balanced operating budget for the next five years.
• Learn more about filing an extension, as well as penalties and interest.This guide was first published on March 16, 2023.
• When calculating your Massachusetts income tax, keep in mind that the Massachusetts state income tax brackets are only applied to your adjusted gross income (AGI) after you have made any qualifying deductions.

Use tax is a 6.25% tax paid on out-of-state or out-of-country purchases that are used, stored or consumed in Massachusetts and on which no Massachusetts sales tax (or less than 6.25%) was paid. View more detailed information on filing status to see what this means for you. If an extension https://www.bookstime.com/ payment is required to reach the 80% threshold, you can pay electronically. If you need to pay $5,000 or more to qualify for an extension, you are required pay electronically. If you are required to file Form M-4768 electronically, register on MassTaxConnect to file your extension.

Adjusted Gross Income (AGI)

The credit amount varies based on the taxpayer’s income, marital status, and number of qualifying children, with the intention of providing greater assistance to families with children. With estimated taxes, you need to pay taxes quarterly based on how much you expect to make over the course of the year. The payment dates for Massachusetts estimated taxes are April 15, June 15, Sep. 15 and Jan. 15. If you work in another state and your employer does business or has offices in Massachusetts, your employer will withhold money from your paycheck to cover the taxes in the state where you work (if that state has income taxes). Your employer will subtract that amount from the amount due in Massachusetts state taxes and withhold the difference to cover your Massachusetts liability, too.

The state of Massachusetts has a flat rate of the personal income tax rate, unlike the federal or many other states of the USA. Massachusetts’s individual income tax rate is fixed at 5.00% for all filing status tax returns. Income tax returns must be filed every spring, but income taxes are also paid all year round. This is done by authorizing employers to withhold money from employees’ paychecks to put toward income taxes.