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Gasoline Tax: 45.77 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 51.77 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate: 5.0% (9% if income over $1 million)
Standard deduction: None
Personal Exemption Allowance: $4,400. Dependent Exemption: $1,000.
Itemized Deductions Allowed? Yes, subject to limitations
Retirement Income
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
Military Pay
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
SBP/SSBP/RCSBP/RSFPP: Exempt
Income Tax Comments: State allows county- and city-level income tax.
Property Tax
Local municipalities average 1.15% of the property's assessed value.
Calculation of assessed value: 100% of fair market value; reappraised annually
Relief programs for:
65 and Over: Minimum tax credit of $5000 available if meet requirements. Renters' programs available. Additional credits available if over 70.
Circuit Breaker Tax Credit: Available if tax exceeds 10% of income plus water and sewer expenses. Available if income less than $69,000 ($103,000 for married filing jointly) and assessed value is less than $1,025,000. Max credit is $2,950.
Disabled Veterans/Surviving Spouses/Gold Star Parents: Tax credit of up to $2,000 based on service-linked disability percentage. Additional abatement or reduction in taxable value available.
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 $2 million (retroactive to 2023) 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 16%. Estates left to spouses are tax-free, and there is an unlimited charitable deduction. There is no inheritance tax.
Premium and Life members can consult our financial staff for education and consumer advice.
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