As a rule, an individual’s income can be taxed both by the state in which the taxpayer resides and by the state in which the taxpayer’s income is earned. The federal standard deduction for a Head of Household Filer in 2025 is $ 22,500.00. The federal standard deduction for a Head of Household Filer in 2024 is $ 21,900.00. Most refunds are claimed on an original return and will be issued automatically by the Department. For e-filed returns the turnaround time is about 6 weeks; but for paper returns it could take up to 10 weeks.
How do Massachusetts tax brackets work?
- Lawmakers should keep that reality in mind as they make changes to tax and economic policies.
- If an extension payment is required to reach the 80% threshold, you can pay electronically.
- The federal standard deduction for a Head of Household Filer in 2024 is $ 21,900.00.
- That simplicity makes filing your Massachusetts state income tax return easier than in states with tiered tax brackets, where different income levels are taxed at varying rates.
- Check the Massachusetts Form 1-NR/PY to learn more.AARP’s Retirement Calculator can help you determine if you are saving enough to retire when — and how — you want.
- Next, check what income you included in your Massachusetts gross income that you’re supposed to deduct on the appropriate Schedule, and then deduct the income.
For example, Virginia’s taxpayers reach the state’s fourth and highest bracket at $17,000 in taxable income. In other states, the top rate kicks in at a much higher level of marginal income. For example, the top rate kicks in at or above $1 million in California (when the “millionaire’s tax” surcharge is included), Massachusetts, New Jersey, New York, and the District of Columbia. Forty-four states levy a corporate income tax, with top rates ranging from a 2.25 percent flat rate in North Carolina to a 11.5 percent top marginal rate in New Jersey. 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.
State Individual Income Tax Rates and Brackets, 2022
Enter your spouse’s Social Security number in the appropriate space at the top of the return under taxpayer’s Social Security number. If you’re married filing joint, both balance sheet spouses must sign the return. The return for tax year 2023 allows you to include the 4% surtax in the calculation of total tax. Other important Massachusetts state tax return information and other related features (e.g. tax extension, amendment, etc.) are listed here as well.
Massachusetts Tax Rates and Brackets
The EITC can have a significant impact on a family’s annual budget, offering relief and financial stability to millions of Americans each year including those in Massachusetts. The 2024 tax rates and thresholds for both the Massachusetts State Tax Tables and Federal Tax Tables are comprehensively integrated into the Massachusetts Tax Calculator for 2024. This tool is freely available and is designed to help you accurately estimate your 2025 tax return.
State Tax Changes Taking Effect January 1, 2025
Thirty-nine states will begin 2025 with notable tax changes, including nine states cutting individual income taxes. Recent years have seen a wave of significant tax reforms, and the changes scheduled for 2025 show that these efforts have not let up. Massachusetts has its own estate tax, which applies to any estate above the Accounting for Churches exclusion amount of $2 million.
