Massachusetts Income Tax Rate 2025
Massachusetts has a flat income tax rate of 5% on all taxable income, plus an additional 4% surtax on annual income exceeding $1 million (the "Millionaire's Tax" approved by voters in 2022).
Tax Type
Flat + Surtax
Base Rate
5%
Rate Over $1M
9% (5% + 4%)
2025 Tax Structure
| Taxable Income | Rate |
|---|---|
| $0 – $1,000,000 | 5% |
| Over $1,000,000 | 9% (5% + 4% surtax) |
The $1 million surtax threshold is adjusted annually for inflation. Massachusetts does not tax Social Security benefits. Short-term capital gains are taxed at 8.5%, while long-term gains are taxed at the standard 5% rate.