Massachusetts

Tax Rate Range: Flat rate of 5.3% of federal adjusted gross income
Personal Exemptions: Single - $3,575; Married - $7,150;
Dependents - $1,000
Standard Deduction: None
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security, civil service, state/local government pensions are exempt. Pension income from other state or local governments that do not tax pension income from Massachusetts public employees is exempt from Massachusetts taxable income.
Retired Military Pay: Not taxed.

State Tax Software

Military Disability Retired Pay:
Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Sales Taxes

State Sales Tax: 5% (food; prescription drugs; fuel costs; gas, oil, electricity; clothing costing up to $175, are exempt). For a complete list, click here.
Gasoline Tax: 23.5 cents/gallon
Diesel Fuel Tax: 23.5 cents/gallon
Cigarette Tax: $1.51/pack of 20

Property Taxes

Massachusetts does not provide for a general homestead exemption but does have a Homestead Act. The Homestead Act permits a homeowner who occupies a house as his/her principal residence to shield up to $5000,000 in equity in that house from creditors. By simply filing a Declaration of Homestead with the appropriate Registry of Deeds, a homeowner may be able to protect his/her residence from the claim of a future creditor. The Homestead Act permits only one spouse to file for the equity protection if each has an ownership interest in the home. The protection offered to the disabled and the elderly is even more comprehensive because it allows a husband and wife who own their own home to each file for the $500,000 equity protection. Click for details.
Massachusetts also has a circuit breaker program that offers a real estate tax credit for persons age 65 and older. Certain taxpayers may be eligible to claim a refundable credit on their state income taxes for the real estate taxes paid during the tax year on the residential property they own or rent in Massachusetts that is used as their principal residence. If the credit due the taxpayer exceeds the amount of the total income tax payable for the year by the taxpayer, the excess amount of the credit will be refunded to the taxpayer without interest. For tax year 2006, the maximum credit allowed for both renters and homeowners is $870. To be eligible for the credit for the 2006 tax year; the taxpayer or spouse, if married filing jointly, must be 65 years of age or older at the close of the 2006 tax year; the taxpayer must own or rent residential property in Massachusetts and occupy the property as his or her principal residence; the taxpayer's "total income" cannot exceed $46,000 for a single filer who is not the head of a household, $58,000 for a head of house hold, or $70,000 for taxpayers filing jointly; and for homeowners, the assessed valuation as of January 1, 2006, before residential exemptions but after abatements, of the homeowner's personal residence cannot exceed $684,000. Click for details.

Estate Taxes

Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax on estates valued at $1,000,000 or more.
For further information, visit the Massachusetts Department of Revenue site.