State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. Go to the Kiplinger Tax Map Massachusetts Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Not Tax-Friendly The Bay State gets dubbed "Taxachusetts" sometimes, but that's not entirely fair, especially when you stack it up against its New England neighbors (except New Hampshire). Taxes in Massachusetts are decidedly average, with a flat 5% income tax and a flat 6.25% sales tax (municipalities can't add to it). Property taxes lean high. The state is one of the few to still have an estate tax, and the exemption threshold ($1 million) is low. Income Tax Range Massachusetts has a flat rate of 5% of federal adjusted gross income. (Note: On November 8, 2022, Massachusetts voters will decide whether to add an additional 4% tax on taxable income over $1 million starting in 2023.) Sales Tax 6.25% state levy. No local taxes.Groceries: ExemptClothing: Exempt if under $175Motor Vehicles: TaxablePrescription Drugs: Exempt Real Property Taxes In Massachusetts, the median property tax rate is $1,170 per $100,000 of assessed home value. Motor Fuel Taxes Gasoline: 26.54¢ per gallon. Diesel: 26.54¢ per gallon. Sin Taxes Cigarettes and little cigars: $3.51 per packSnuff: 210% of the wholesale priceChewing tobacco: 210% of the wholesale priceOther tobacco products: 40% of the wholesale priceVapor products: 75% of the wholesale priceBeer: $0.11 per gallonWine: $0.55 per gallonLiquor: $4.05 per gallonAlcohol sales are exempt from sales tax.Marijuana: 10.75% excise tax; up to 3% local option taxes may also be due Annual Car Taxes and Fees An annual vehicle excise tax based on the car's sticker price (MSRP) and age is imposed. Estate and Inheritance Taxes Estates valued at more than $1 million may be subject to a Massachusetts estate tax. Tax rates range from 0.8% to 16%. There is an unlimited marital deduction for property left to a surviving spouse and an unlimited charitable deduction for property left to a qualified charity.