Gasoline Tax: 44.94 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 50.94 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate: 5.0%
Standard deduction: None
Personal Exemption Allowance: $4,400. Dependent Exemption: $1,000
Itemized Deductions Allowed? Yes, subject to limitations
Social Security: Exempt
IRAs: Portion on which Massachusetts tax was previously paid not taxable
401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates
Private pensions: Taxable at ordinary income tax rates
Public Pensions: Exempt
Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income
Military Retirement Pay: Exempt
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
Income Tax Comments: State allows county- and city-level income tax. Beginning in 2023, income over $1 million taxed an additional 4%.
Local municipalities average 1.23% of the property's assessed value.
Calculation of assessed value: 100% of fair market value; reappraised annually
Relief programs for:
65 and over: Tax credit of up to $1,200 available if tax exceeds 10% of income plus water and sewer expenses; available if income less than $62,000 ($93,000 for married filing jointly; $64,000/$96,000 as of Jan. 1, 2023) and assessed value is less than $884,000. Renters' programs available.
65 and over and Lower Income: $750 tax relief if meet certain income and property value requirements.
Disabled Veterans/Surviving Spouse/Gold Star Parents: Tax credit of up to $1,500 based on service-linked disability percentage
Work-Off: Volunteers over 60 can work off some of their property tax liability. Not available in all municipalities.
Personal Property Tax: Yes. Rates and exemptions vary.
Deferral programs are also available.
Inheritance & Estate Taxes: Estates over $1 million are taxed using a maximum federal credit for state death taxes plus a percentage of any amount exceeding that credit with a maximum rate of 15%. Estates left to spouses are tax-free, and there is an unlimited charitable deduction. There is no inheritance tax.