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 CARES Act examples listed below. Eligible candidates can get a refund on property taxes up to $1,200. Property taxes vary across different municipalities in Massachusetts. The market value of a property also determines property tax, so it can differ greatly across different neighborhoods and properties. Most food sold in grocery stores is exempt from sales tax entirely. Clothing purchases, including shoes, jackets and even costumes, are exempt up to $175.

Using our Massachusetts Salary Tax Calculator

Homeowners have seen their property taxes go up an average of 9 percent annually over the past five years. With Wu’s proposal in effect, the year over year increase in 2025 would be closer to 5 percent. Taxpayers are Bookstime also entitled to deductions, such as childcare expenses, college tuition, and rental payments. Taxpayers can also get a personal exemption to reduce their overall tax bill. In Massachusetts, average property taxes are paid about 1.14% of assessed home value, according to the Tax Foundation.

3 – Massachusetts Dependent Deduction

• SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you.
• Both Brownsberger and Collins on Monday pushed for the Boston City Council to return to Beacon Hill with a new home rule-petition to provide direct tax assistance for vulnerable homeowners instead.
• Profit and prosper with the best of Kiplinger’s advice on investing, taxes, retirement, personal finance and much more.
• If you want to check the status of your Massachusetts tax refund, you can visit the Massachusetts Income Tax Refund page.
• Perhaps office supplies, repairs on your office computers, building repairs, or even purchasing your workers’ suitable clothing for their job (e.g. a plumber should be wearing a boiler suit).

“For the past couple of decades, robust downtown growth has allowed Boston to increase spending without heavily burdening residential taxpayers. Both Brownsberger and Collins on Monday pushed for the Boston City Council to return to Beacon Hill with a new home rule-petition to provide direct tax assistance for vulnerable homeowners instead. “I personally do consider this bill dead,” Brownsberger told reporters shortly after state Senator Nick Collins of Boston used a procedural move to delay action on the bill for the third time in roughly a week. On Beacon Hill, Democratic leaders often are loath to publicly declare a proposal finished. The city is holding a special mayoral election today after Mayor Neil Perry died from health issues in September.

• The Personal Exemption, which is supported by the Massachusetts income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses.
• Personal income tax exemptions directly reduce how much tax you owe.
• Meals, motor vehicles, or alcohol will not qualify for sales tax holiday exemption.
• An overpayment claimed on a return may be applied as a credit for your next year’s estimated tax or you may request that it be refunded to you.
• Learn about new tax relief, the short-term capital gains tax rate change, the 4% surtax, and more.

2 – Massachusetts Personal Exemptions

The due date and payment date for returns and payments is extended for a specified period of time announced by the IRS unless we publicly announce otherwise. This extension covers filing tax returns, paying tax (including estimated tax), and filing tax extension forms with us. More than 70 percent of Boston’s $4.6 billion budget is funded by property taxes, about two-thirds of which comes from commercial real estate. However, commercial property values, particularly for downtown office buildings, have dropped with the rise of post-pandemic remote work policies. Social Security retirement benefits are fully exempt, but any other retirement income, for example, payments from a retirement savings plan, is taxed at the state income tax rate of five%.

• Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide.
• If your principal residence is in Massachusetts and you paid rent to a landlord in the past year, you can deduct 50% of the rent paid, up to $4,000 (up to $2,000 for married people filing separately).
• If you didn’t owe any taxes and didn’t file by the deadline, an extension to October is automatically granted.
• The new information also led the business groups who had worked on the legislation with Wu to pull their support.

The state of Massachusetts has a personal income flat tax rate of 5% for everyone who made over $8,000 in 2023, regardless of their filing or residency status. When you massachusetts tax brackets pay more taxes (i.e., withholding taxes or estimated taxes) than the amount of taxes determined to be due an overpayment may be generated on your account. An overpayment may also be generated if you are entitled to a refundable credit that exceeds the amount of tax due. Additionally, when you file an amended return or an abatement application to reduce the amount of tax due, and you previously paid more than what is now shown as due, an overpayment may be generated. You may also qualify for certain personal income tax credits, which can reduce the amount of tax you owe.