You can also use our New York property tax calculator to find out what you would pay in property taxes in New York. “Over the past week, my office has received a number of alarming and disheartening calls from residents in fear of their rising property taxes,” Pepén said. “This hopelessness has come after months of continual denial of the city’s collaborative proposals from a few lawmakers. In 2025, it applied to any income beyond $626,350 for single taxpayers.

Tax Year 2024 Personal Income (Chapter Changes

In New York City, there is an additional $1.50 excise tax per pack of cigarettes. For example, food sold in Purchases Journal grocery stores (except prepared and/or heated food) is generally exempt, and in New York City, clothing and footwear purchases up to $110 are also sales-tax free. Note that all five New York City counties (New York, Kings, Queens, Bronx and Richmond) are subject to the full city tax rate of 8.875%, the highest total rate in the state. That rate includes a 0.375% charge for the Metropolitan Commuter Transportation District, which supports the region’s transportation infrastructure. In any state, homeowners should review assessment notices carefully and apply for any available exemptions or property tax appeals where eligible.

State’s Tax Growth Forecast Barely Exceeds Inflation …

Decoupling can also affect budgets, planning, and the broader state economy. When Congress changes federal tax law, states must decide whether to adopt those changes for state tax purposes — a process known as conformity. By incorporating your specific location into the calculation, it ensures that every estimate reflects the taxes you might owe right down to your city block.

Massachusetts Gross Income

The Massachusetts personal income tax previously conformed to the IRC as amended on January 1, 2022. Money withdrawn from most private pensions and retirement accounts, including 401(k)s and traditional IRAs, is considered taxable income. Check the Massachusetts Form 1-NR/PY to learn more.AARP’s Retirement Calculator can help you determine if you are saving enough to retire when — and how — you want. 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. There are no additional local taxes collected, so 6.25% is the rate you will pay regardless of where you are in the state. The tax is on the purchase or use of “tangible personal property.” This includes nearly any purchasable good, with some exceptions.

Credits

States are refining sales tax rules to reduce the burden on massachusetts income tax rate necessities while capturing revenue from growing sectors, like digital commerce. This proposed law would reform the stipend system on Beacon Hill, in which lawmakers who take on leadership positions earn extra pay. The number of lawmakers receiving these stipends has sharply increased over the past decade, and critics say that many of those receiving extra pay are not actually doing the extra work for which they are being paid. The proposed law seeks to tie compensation to performance, meaning leaders would have to hit a series of timeliness and transparency benchmarks to earn their stipends.

But a federal court has blocked the portion applicable to cruise ships in an ongoing legal battle. By putting more money in their residents’ pockets, states hope to spur economic growth and attract more workers, businesses and investments, experts said. This proposed law would repeal adult-use recreational marijuana in Massachusetts. Supporters argue that shuttering recreational marijuana stores would improve safety for all residents, especially young people.

• Most long-term capital gains, as well as interest and dividend income, are taxed at the standard income tax rate of 5%.
• The bonus pay is on a separate payroll from the employee’s wages, so you must use the supplemental tax rate.
• Massachusetts imposes a state income tax on residents, which consists of a flat rate on most types of income.
• The exact impact depends on a retiree’s age and birth year, but for many, the changes mean more money in their pockets.
• Massachusetts requires most adults 18 and over with access to affordable health insurance to ob­tain it.

The Massachusetts Department of Revenue (DOR) encourages electronic filing, which can streamline the process and reduce the chances of errors. Moreover, awareness of tax brackets can influence decisions related to employment and salary negotiations. For example, individuals might seek online bookkeeping to negotiate salaries that maximize their disposable income after tax obligations are considered. By knowing the percentage of income that will be taxed, individuals can make informed decisions regarding investments, expenditures, and savings. This awareness can lead to optimized financial strategies that enhance wealth accumulation. Massachusetts conforms to the federal income exclusion for employer-provided parking, transit pass, and commuter highway vehicle transportation benefits.

• This proposed law would allow single-family homes to be built on any residentially-zoned area that has at least 5,000 square feet, at least 50 feet of land bordering the street, and access to public sewer and water services.
• Starting in 2023, Massachusetts implemented an additional 4% surtax on income over $1 million—known as the “Millionaires Tax.” That remains in effect in 2025.
• To maximize a tax refund, residents of Massachusetts should familiarize themselves with the various deductions and credits available.
• Most food sold in grocery stores is exempt from sales tax entirely.

Those backing the proposal argue that rent control is necessary to counteract corporate real estate investors and to keep residents from fleeing to more affordable states. Opponents, which include many in the real estate industry, say that rent control is a failed experiment that slows housing production and actually increases housing prices. Boston Mayor Michelle Wu would like to see individual communities have the option of implementing rent control but has shown skepticism about the idea of a blanket statewide policy. Common deductions include those for student loan interest, contributions to retirement accounts, and medical expenses exceeding a certain threshold. State-specific credits, such as the Earned Income Tax Credit (EITC) and the Senior Circuit Breaker Credit, can also significantly reduce tax liability.

Massachusetts Tax Brackets

• The property tax levy is the annual amount of taxes assessed upon real and personal property in the community.
• Some states may use a progressive method where the tax increases as wages increase.
• One effective strategy is to contribute to tax-advantaged accounts, such as a 401(k) or IRA, which can lower taxable income while also encouraging savings for retirement.
• Whether buying or selling a home, it’s important to understand the specifics of a home inspection.

Massachusetts’s flat tax rate should make filing your state income tax return easy, but residency rules, deductions, and credits can sometimes complicate the process. TurboTax simplifies the process, whether you want to do your taxes yourself or get expert help. For taxpayers in the state of New York, there’s New York City, and then there’s everywhere else. The state’s tax system combines a relatively low sales tax rate with an income tax system that leans heavily on high earners.