How Do You Read the Massachusetts Tax Chart?


Quick Answer

The Massachusetts Personal Income Tax tables published on the state's Department of Revenue website instruct filers to find their adjusted gross income on the chart to determine their tax liability. The Department of Revenue's Frequently Asked Questions page states the income tax rate for 2014 wage income at 5.2 percent.

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Full Answer

The Massachusetts Department of Revenue supplies tables that tell filers their tax liability based on taxable income up to $24,000. For income over $24,000, the tables instruct filers to multiply their taxable income by 5.2 percent, as of July 2015. Some income is exempt from taxation, and the Massachusetts Resident Income Tax Return for 2014 exempts between $4,400 and $8,800 of income, depending on filing status. Pensions from Massachusetts or the federal government are not taxable in Massachusetts, according to the Department of Revenue. Social Security benefits, Veterans' Administration payments, workers compensation and public assistance are also not subject to Massachusetts taxes.

On Jan. 1, 1996, Massachusetts delineated three types of income for tax purposes, reports the state's Department of Revenue. Part A income consists of interest, dividends and short-term capital gains. Long-term capital gains are classified as Part C. All other income is Part B income. The rate structure has been adjusted so that most income is taxed at the Part B rate. Short-term capital gains and long-term capital gains on collectibles are the exception to the standard and are taxed at 12 percent, as of 2015.

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