Massachusetts is considered one of a handful of states with a flat earnings tax charge. For tax yr 2022, people who find themselves required to file a Massachusetts tax return will see the whole thing of their taxable earnings charged at a flat 5% charge. Sure sorts of earnings within the Bay State, nonetheless, are topic to a unique tax charge.
The 2022 tax-filing deadline in Massachusetts was April 18, 2023. In case you met sure standards and paid 80% of your complete tax invoice earlier than this date, a six-month extension to Oct. 16, 2023, was mechanically supplied.
Beginning with earnings earned in 2023, a further 4% tax on earnings over $1 million shall be levied, making the very best tax charge within the state 9%.
Massachusetts state earnings tax charges and tax brackets
For tax yr 2022, Massachusetts’s state earnings tax charge is 5% on annual gross earnings over $8,000.
Gross earnings in Massachusetts contains each earned earnings, reminiscent of salaries, wages, ideas and commissions, and unearned earnings, reminiscent of curiosity, dividends and capital good points. The exceptions to Massachusetts’ 5% tax charge are sure sorts of capital good points, reminiscent of short-term capital good points and good points on collectibles, that are taxed at 12%.
Do I’ve to pay Massachusetts state earnings tax?
Anybody incomes over $8,000 in Massachusetts annual gross earnings is required to file a state tax return.
These incomes lower than this quantity don’t must file a return, however they will nonetheless file a return to say refundable tax credit.
This $8,000 earnings threshold is on a per-person foundation, giving married {couples} the choice to file collectively or individually.
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Am I a resident for Massachusetts state earnings tax functions?
Resident standing guidelines
There are two methods to be thought of a full-time resident of Massachusetts. The primary is to stay in Massachusetts for all the tax yr, whereas the second is to keep up a house in Massachusetts and spend at the very least 184 days of the tax yr within the state.
Half-year resident standing guidelines
Half-year residents seek advice from people who both moved to the state and have become residents or moved out of the state and ended their residencies inside the tax yr.
Nonresident standing guidelines
If neither of the above applies, then a person is taken into account a nonresident of Massachusetts. A state tax return continues to be required in case your Massachusetts annual gross earnings exceeds $8,000 or the prorated private exemption, whichever is much less.
What’s Massachusetts’ customary deduction?
In contrast to different states, Massachusetts doesn’t have a state customary deduction. As a substitute, state taxpayers can decide in the event that they qualify for sure tax exemptions to cut back the quantity of tax owed.
Anybody who information a Massachusetts state tax return is given a private exemption quantity based mostly on their tax-filing standing. Taxpayers might also be eligible for added exemptions, reminiscent of these for having qualifying dependents or for having paid sure sorts of medical or dental prices all through the tax yr. Mass.gov has the complete particulars.
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Married submitting individually. |
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What’s the submitting deadline for my Massachusetts state earnings tax invoice?
The submitting deadline for 2022 Massachusetts state earnings tax returns was April 18, 2023.
To have certified for a six-month extension, you have to have paid at the very least 80% of the whole quantity of tax owed by that mid-April deadline. In case you didn’t owe any taxes and didn’t file by the deadline, an extension to October was mechanically granted.
The state extension deadline follows the federal extension deadline set by the IRS, which for the 2022 tax yr is October 16, 2023.
Those that have been affected by a federally declared catastrophe mechanically obtain an extension for submitting tax returns, paying their tax invoice and submitting a Massachusetts tax extension.
4 issues to learn about Massachusetts state tax
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Free tax-filing is obtainable to eligible Massachusetts full-time and part-time residents by means of MassTaxConnect.
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The Massachusetts Division of Income encourages taxpayers to file and pay their tax returns on-line. Submitting might be performed by means of a tax vendor or MassTaxConnect. Paper submitting choices are additionally accessible.
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Massachusetts gives cost plans for individuals who cannot afford their tax payments. In case you owe $5,000 or much less, you possibly can join a plan on-line. Folks with larger tax payments ought to attain out to DOR collections for extra data Â
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Test the standing of your Massachusetts state tax return online or by cellphone at 617-887-6367 Monday by means of Friday, 9 a.m. to 4 p.m. Jap time.