This is the last day people had to file their returns in a timely manner and pay any taxes due. Learn how to file your income tax return, make a payment, check the status of your refund, and more. The state of Massachusetts has a flat corporate income tax rate of 8.00% on all income on C Corporations. For other businesses that flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., they are taxed at the individual income tax rate which is 5.00% of your AGI. The vendor must ensure that these forms are complete and keep them to prove the sale was exempt. Gift card sales, third-party sales, and other such sales should be Catch Up Bookkeeping included in the cash sales line when used to pay for a meal regardless of how they were originally paid for.

State Individual Income Tax Rates and Brackets, 2025

The Household Employment Tax Guide provides household/domestic employers with the information they need to fully understand their obligations when hiring household help. We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Massachusetts does not allow local jurisdictions like cities or counties to collect a local sales tax. You can view the sales tax rates for various cities in Massachusetts here.

What Is the 4% Surtax?

This tool is freely available and is designed to help you accurately estimate your 2025 tax return. Massachusetts is one of a few states with a flat individual income tax. Please note that businesses facilitating the sale of meals on behalf of restaurants are not subject to the marketplace facilitator rules. Such businesses are not required to collect and remit tax on the sales of meals, as long as the restaurants themselves are registered to collect and remit tax. DOR may issue further guidance relating to the responsibilities of businesses facilitating the sales of meals.

Capital Gains Tax Calculator

You must complete and send the appropriate sales tax return(s) to DOR, with payment in full, on or before the 30th day following the month represented by the return. The new MFB account type allows taxpayers to file a single return for multiple locations. You will be able to use an MFB Excel Template to report the required information for all locations on one return and make a single payment. Beginning with the July 2024 period, the Meals, Food & Beverage (MFB) account type will replace the Meals Tax (MLS) account type for reporting and remitting sales tax on meals. If you’re a non-Massachusetts employer who conducts business or maintains an office in Massachusetts, you must withhold the amount determined massachusetts tax rate for Massachusetts income tax purposes, minus any amount deducted and withheld for your own state.

Estate taxes in Massachusetts

• If the employee doesn’t have to substantiate expenses or return excess payments, the payments must be included in the employee’s wages and are subject to withholding.
• Anyone who sells meals that are subject to sales tax in Massachusetts is a meals tax vendor.
• These methods, which are explained in Income Tax Withholding Tables (Circular M), may be applied on a daily, weekly, biweekly, semi-monthly or monthly basis.
• These pre-tax contributions lower your taxable income, potentially saving on taxes and bolstering your financial future.
• Other exempt items include periodicals, admissions tickets (i.e. to movies or sporting events), professional or personal services and most health care products.
• Some taxpayers are required to file amended returns and applications for abatement electronically.

Employees who receive other income that is not withheld from can ask their principal employer to withhold extra taxes to cover the additional tax that will be due on that income. Tips are considered part of an employee’s pay and must be taken into account when determining withholding. Employees must report tips from any one job totaling $20 or more in any given month to their employers by the 10th day of the following month. You should use this reported amount to calculate withholding by adding the reported tips to the employee’s pay. If you are a Massachusetts business owner, you can learn more about how to collect and file your Massachusetts sales tax return at the 2025 Massachusetts Sales Tax Handbook . Clothing has a higher tax rate when you spend over $175and a special local sales tax of 0.75% may apply to meals purchased in some localities.

There are no additional local taxes collected, so 6.25% is the rate you will pay regardless of where you are in the state. The tax is on the purchase or use of “tangible personal property.” This includes nearly any purchasable good, with some exceptions. As mentioned above, incomes that exceed this threshold are subject to a 4% surtax that was first instituted in 2023. State residents who would like to contribute more to the state’s coffers also have the option to pay a higher income tax rate. Massachusetts has a flat income tax rate of 5%, but charges a 4% surtax on income over $1 million.

If the estate has a gross value (before any deductions) over that level, a Massachusetts estate tax return must be filed. Effective for returns for tax periods beginning on or after January 1, 2022, and any late-filed returns for earlier periods, you must file sales tax on meals returns and make payments electronically. You can (but aren’t required to) show the amounts of state and local taxes on meals as separate line items. All dining room meals checks must be securely tied and preserved in dated, daily bundles.

Credits

Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. The Personal Exemption, which is supported by the Massachusetts income tax, is an additional deduction you can take if you (and not someone else) are primarily responsible for your own living expenses. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. Technically, you don’t have just one “tax CARES Act bracket” – you pay all of the Massachusetts marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar. For comparison purposes, however, your Massachusetts tax bracket is the tax bracket in which your last earned dollar in any given tax period falls.