What is Massachusetts Income Tax? Rates & Tax Brackets

Updated for tax year 2025.

If you live or work in Massachusetts, you’ll likely need to file a Massachusetts state income tax return along with your federal return. Massachusetts uses a flat income tax rate on most personal income, with additional rates for certain capital gains and a surtax on very high incomes.

This guide explains Massachusetts’s 2025 income tax rates, available deductions and exemptions, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Massachusetts’s tax rules to help you accurately prepare your Massachusetts return alongside your federal return.

What is the Massachusetts state income tax?

Massachusetts state income tax is a tax on income earned by individuals. It is collected by the Massachusetts Department of Revenue and helps fund state services.

For tax year 2025, most Massachusetts personal income is taxed at a flat 5% rate. Massachusetts also applies higher rates to certain capital gains and an additional 4% surtax on taxable income above the annual inflation-adjusted threshold.

Massachusetts income tax rates and tax brackets

To estimate your Massachusetts tax bill or refund, it helps to understand how the state’s income tax rates work. The state of Massachusetts levies a flat 5% tax on personal income under $1,083,150, meaning the tax rate remains the same for all filers regardless of filing status or income level.

However, Massachusetts imposes an 8.5% tax on short-term capital gains, a 12% tax on collectibles, and a 3% tax on capital gains earned on certain investments in startup companies. Additionally, as of 2023, the state imposes another 4% surtax on the portion of a taxpayer’s annual income exceeding $1,083,150.

If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes. See Massachusetts tax rates on the Department of Revenue website for official rate schedules.

Massachusetts standard deduction

Residents of Massachusetts cannot claim a standard deduction on their state income tax return.

Instead, Massachusetts allows specific deductions on Form 1 and Schedule Y, such as amounts paid for Social Security and Medicare (up to $2,000 per person), a rental deduction for qualifying rent paid in Massachusetts (up to $4,000), and certain education-related deductions. See the 2025 Form 1 instructions for details.

Massachusetts exemptions

Taxpayers can also claim deductions for Massachusetts rent payments (not to exceed $4,000) and deductions for college tuition and student loan payments.

Personal exemptions are also available to Massachusetts state residents. The amount available to taxpayers for a personal exemption depends on tax filing status:

Filer type	Exemption
Single	$4,400
Married Filing Separately	$4,400
Married Filing Jointly	$8,800
Head of Household	$6,800

For tax year 2025, Massachusetts also allows a $1,000 exemption for each dependent you claim on your federal return, plus additional exemptions for taxpayers and spouses age 65 or older ($700 each) and for blindness ($2,200 each), when you qualify. Massachusetts offers credits that may reduce what you owe, including the earned income credit and child and family tax credit for eligible filers.

Massachusetts tax changes for 2025

For tax year 2025, Massachusetts’s 5% flat rate on most income remains in place, along with the 8.5% and 12% rates on certain capital gains. The 4% surtax applies to taxable income over $1,083,150 for 2025 (up from $1,053,750 in 2024), as adjusted for inflation.

Massachusetts generally conforms to the Internal Revenue Code as amended and in effect on January 1, 2024. Massachusetts did not adopt all recent federal tax changes, including certain provisions of the One Big Beautiful Bill Act (OBBB). Some federal deductions and credits may not apply on your Massachusetts return. See Massachusetts Department of Revenue guidance and the 2025 Form 1 instructions for details.

FAQs

Does Massachusetts have a state income tax?

Yes, Massachusetts has a state income tax. For tax year 2025, most Massachusetts personal income is taxed at a flat 5% rate, with additional rates for certain capital gains and a 4% surtax on taxable income above the annual threshold.

What is the Massachusetts income tax rate?

Massachusetts’s main 2025 income tax rate is 5% on most personal income. Short-term capital gains are taxed at 8.5%, collectibles at 12%, and taxable income over $1,083,150 is subject to an additional 4% surtax for 2025.

What are the Massachusetts income tax brackets for 2025?

Massachusetts does not use traditional progressive income tax brackets for most income. Instead, most filers pay 5% on earned and unearned income, with higher rates on certain capital gains and a 4% surtax on income over the inflation-adjusted millionaire threshold. See the Massachusetts income tax brackets section above.

How does Massachusetts state income tax work?

Massachusetts state income tax generally starts with your federal adjusted gross income, then applies Massachusetts-specific deductions, exemptions, and credits to arrive at Massachusetts taxable income. Tax is calculated using Massachusetts rates, which include the 5% flat rate and special rates for certain types of income.

Do I have to file a Massachusetts state tax return?

You may need to file a Massachusetts state tax return if you are a Massachusetts resident, part-year resident, or nonresident with Massachusetts-source income and you meet Massachusetts filing requirements. Filing rules depend on your income, residency, and other factors, so check Massachusetts Department of Revenue guidance for your situation.

What is the Massachusetts standard deduction for 2025?

Massachusetts does not have a standard deduction. Instead, Massachusetts allows specific deductions such as Social Security and Medicare payments (up to $2,000 per person), a rental deduction (up to $4,000), and certain education-related deductions on Form 1 and Schedule Y.

How much is Massachusetts state income tax?

There isn’t one Massachusetts state income tax amount that applies to everyone. How much Massachusetts state income tax you owe depends on your Massachusetts taxable income, available deductions and exemptions, credits, and whether any of your income is taxed at special capital gains rates or subject to the 4% surtax.

Why is my Massachusetts tax return different from my federal return?

Massachusetts generally follows federal tax law in many areas, but Massachusetts has its own deductions, exemptions, credits, and IRC conformity rules that can make your Massachusetts taxable income different from your federal return. Massachusetts conforms to the Internal Revenue Code as of January 1, 2024, and did not adopt all recent federal tax changes, including certain OBBB provisions.

The good news is that our tax software automatically applies Massachusetts’s current tax rules when preparing your state return, so you don’t have to calculate these differences yourself.

For more information, visit the Massachusetts Department of Revenue. If you’d like to learn more about recent federal tax law changes, see our OBBB tax changes guide.

The bottom line

Massachusetts taxes most personal income at a flat 5% rate for 2025, with additional rates for certain capital gains and a surtax on high incomes. Knowing Massachusetts’s income tax rates, available deductions and exemptions, and credits can help you estimate what you may owe — and what you may get back.

When you’re ready to file, TaxAct can help you prepare your federal and Massachusetts returns in one place so you can file with confidence.

Already filed your taxes and waiting for your refund? Learn more about where your Massachusetts state tax refund is.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.

Citations

Massachusetts Department of Revenue. “Massachusetts Tax Rates.” Accessed 23 July 2026.
Massachusetts Department of Revenue. “2025 Form 1 Instructions.” Accessed 23 July 2026.
Massachusetts Department of Revenue. “Massachusetts Personal Income Tax Exemptions.” Accessed 23 July 2026.
Massachusetts Department of Revenue. “Personal Income Tax for Residents.” Accessed 23 July 2026.