FY2025 Tax Levies, Assessed Values and Tax Rates

Benefits of e-Filing your Massachusetts tax return include instant submission, error checking, and faster refund response times. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below. You may also qualify for certain personal income tax credits, which can reduce the amount of tax you owe. Personal income tax exemptions directly reduce how much tax you owe. income statement Exemptions are generally related to your filing status and number of dependents you report on your tax return, but not always.

Massachusetts Standard and Itemized Deductions

The deduction previously allowed for a deduction of up to $100 ($200 for joint filers) of interest from Massachusetts banks is repealed for tax years beginning on or after January 1, 2024. This credit isn’t refundable, but if the credit exceeds the tax you owe, you can carry the excess forward for up to seven years. The credit is worth the cost of the removal or fix, up to $3,000. Meanwhile, if you were only able to bring your residence into interim control, defined by the state as temporarily addressing lead hazards, you’re entitled to a credit worth a maximum of $1,000. Condo owners are also entitled to a credit for repairs done to common areas in addition to the work done in their individual units. This may influence which products we review and write about (and where those products appear on the Accounting For Architects site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.

Calculate your income tax in these states

The filing extension is automatic, with no need to file forms, if at least 80 percent of the tax due is paid by the April 15 deadline. Learn more about filing an extension, as well as penalties and interest.Michelle Cerulli McAdams is a freelance writer based in Massachusetts. She has written for the AARP Bulletin for 10 years, covering health, medicine, politics and policy.

Rate

Thus, the individual would pay a total of $17,280 in Massachusetts state income taxes for 2025. Property taxes in Massachusetts are one of the most significant sources of revenue for local governments. In some counties, median property taxes paid exceed $6,000 per year. The median property tax bill in the state is $5,584 – one of the highest in the country. Residents of Massachusetts are also subject to a penalty if they do not have health insurance massachusetts tax brackets coverage, which is paid through their tax return. There is a three-month grace period for health coverage lapses, after which the penalty accumulates on a monthly basis, up to about $175 per month.

• There are some important updates to Massachusetts tax laws this year to keep in mind as your prepare to put your taxes together.
• Personal income tax deductions decrease your taxable income, which means you owe less taxes.
• The property tax levy is the annual amount of taxes assessed upon real and personal property in the community.
• The dual system of excise and sales taxes ensures revenue capture at both wholesale and retail levels.
• Wholesalers and distributors file monthly excise tax returns using Form AB-10, detailing alcohol volume and corresponding taxes.
• Businesses involved in alcohol sales and distribution must register with the DOR and obtain necessary licenses and permits.

Personal income tax deductions decrease your taxable income, which means you owe less taxes. Deductions are generally related to your expenses, but not always. The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Massachusetts’ and may have different rules.

• The amount of the credit is subject to limitations based on the taxpayer’s total income and the assessed value of the real estate.
• If you earn income in Massachusetts, you know you’ll lose something to taxes.
• The highest FY2025 commercial tax rate is Holyoke ($38.55) and the lowest is Edgartown ($2.65).
• Veterans Administration disability compensation is also not taxed in the state.Spouses of military personnel may be eligible for exemptions.
• Values rose by 87%, or $842.9 billion, from $968.5 billion to $1.811 trillion.