Existing user? Sign in
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Or refine your search by selecting a city:
Refine your search by selecting a city.
Tax law in Massachusetts covers a wide range of rules and regulations governing the taxation of individuals, businesses, and other entities within the state. Taxes collected at both the state and local level fund public services such as education, transportation, and health care. Massachusetts administers its own income tax system, sales tax, property taxes, estate taxes, and various excise taxes. Residents and businesses are required to comply with both state and federal tax laws, and failure to do so can result in significant penalties, fines, or legal consequences.
Massachusetts tax laws are complex and subject to frequent changes, making it challenging for individuals and businesses to remain compliant. People often seek legal assistance for tax matters in situations such as:
An experienced attorney can help ensure compliance, represent clients in audits or hearings, negotiate with tax authorities, and defend against allegations of tax violations.
Massachusetts operates its own tax code, independent of federal taxes. Here are key aspects relevant to tax law in the state:
Taxpayers must file returns accurately and on time. Failing to do so can result in interest charges, penalties, and enforcement actions by the Massachusetts Department of Revenue.
As of 2024, Massachusetts has a flat personal income tax rate of 5 percent on most income, with some exceptions for short-term capital gains which are taxed at 12 percent.
Nonresidents who earn income from Massachusetts sources must file a state tax return and pay taxes on Massachusetts-sourced income.
Social Security benefits are not subject to Massachusetts state income tax.
Most groceries, certain clothing items under a set price, and prescription medications are exempt from the Massachusetts sales tax.
Property tax rates are set by local governments based on assessed property values. Assessors determine the value of your property, and your tax bill is calculated by applying the local tax rate.
If you are audited, respond promptly to all requests for documentation, consider consulting a tax attorney, and cooperate fully to resolve any discrepancies.
Estates exceeding the threshold amount set by state law (currently 1 million dollars) must file a Massachusetts estate tax return and may owe estate taxes.
You have the right to appeal by requesting an abatement or contesting the notice through the Massachusetts Department of Revenue's formal dispute resolution processes.
You may face penalties, interest, tax liens, or wage garnishments for failing to file or pay state taxes on time.
You should consult a lawyer if you are facing an audit, have unfiled returns, receive a notice from tax authorities, owe significant back taxes, or have complex business or estate tax questions.
If you need further assistance or information, consider the following resources related to tax matters in Massachusetts:
If you need legal assistance with a tax issue in Massachusetts, start by gathering all relevant documents, such as tax returns, notices from tax authorities, and financial records. Identify your specific issue and consider reaching out for a consultation with a qualified tax attorney or CPA who is familiar with Massachusetts tax law. Addressing tax matters early and with professional help can prevent costly mistakes, protect your rights, and improve the likelihood of a favorable outcome. Take note of any deadlines mentioned in correspondence from tax authorities and respond promptly. If cost is a concern, explore free or reduced-cost services mentioned in the resources above. Do not hesitate to seek help early if you feel overwhelmed or uncertain about your tax situation.
