State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

Massachusetts State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

Massachusetts

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The Bottom Line
Flag of Massachusetts

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 5.05% 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 5.05% of federal adjusted gross income.

Sales Tax

6.25% state levy. No local taxes.

Groceries: Exempt
Clothing: Exempt if under $175
Motor Vehicles: Taxable
Prescription 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 pack
Snuff: 210% of the wholesale price
Chewing tobacco: 210% of the wholesale price
Other tobacco products: 40% of the wholesale price
Vapor products: 75% of the wholesale price

Beer: $0.11 per gallon
Wine: $0.55 per gallon
Liquor: $4.05 per gallon
Alcohol 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.


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