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Massachusetts full-year and part-year residents who have a principal residence within the state may qualify for the Solar, Wind and Energy Tax Credit. You can claim the smaller of 15% of the net expenditure for the renewable energy source property or up to $1,000. If you split the rent with someone else, each taxpayer is entitled to the deduction for the portion of the rent that they pay. Likewise, if your rent is paid by a third party, such as a parent, you aren’t eligible for this deduction. If your principal residence is in Massachusetts and you paid rent to a landlord in the past year, you can deduct 50% of the rent paid, up to $3,000 (up to $1,500 for married filing separate filers).
- Food or beverages prepared for human consumption and provided by a restaurant or restaurant part of a store are taxable as “meals”, including those sold on a “take out” or “to go” basis.
- Qualified accessories include Apple Pencil, speakers, displays, keyboards, mice, routers, and cables.
- Unlike for the sales tax, the buyer generally pays the use tax directly to Massachusetts.
- This offer is not available if you or your Family have previously accepted an Apple TV+ one year free offer.
- The term “exemption” can be a bit misleading because it suggests that only the value of the estate in excess of $1 million is taxed.
The dealer collects the sales tax on boats and recreational vehicles at the time of sale. For casual sales, the sales/use tax is due before registering or massachusetts income tax by the twentieth day of the following month, whichever occurs earlier. For motor vehicle and trailer sales, the buyer directly pays the Commonwealth.
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Boston Harbor may be the site of the most famous tax protest in history, but today Bay Staters pay taxes on a lot more than tea. The most significant taxes in Massachusetts are the sales and income taxes, both of which consist of a flat rate paid by residents statewide. The statewide sales tax rate of 6.25% is among the 20 lowest in the country (when including the local taxes collected in many other states). The Massachusetts sales tax is 6.25% of the sales price or rental charge of tangible personal property (including gas, electricity, and steam) and telecommunications services1 sold or rented in Massachusetts. The buyer pays the sales tax, as an addition to the purchase price, to the vendor at the time of purchase.
You are a Nonresident if you were not a resident of Massachusetts but earned Massachusetts income (e.g., from a job in Massachusetts). You must report such income by filing a Massachusetts Nonresident/Part-Year Resident Income Tax Return, Form 1-NR/PY. Our team of 100+ researchers keeps our database up to date with the latest in rates and taxability rules for each jurisdiction.
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The term “exemption” can be a bit misleading because it suggests that only the value of the estate in excess of $1 million is taxed. If the taxable estate exceeds $1 million (even if only by a small amount) then the value of the entire net estate is subject to an estate tax calculation on the graduated scale. In its simplest terms – if the gross estate plus all lifetime gifts does not exceed $1 million, then the estate is not taxable. If the gross estate (with or without lifetime gifts) exceeds $1 million, then the net estate is fully taxable. The Massachusetts Department of Revenue taxes residents on income from all sources, and non-residents only on income derived from Massachusetts. If you are a resident of Massachusetts, whether single or married, you will have to file a Massachusetts return if your gross income from all sources exceeds $8,000.
If you own a residential property in Massachusetts and paid to remove or fix a lead paint issue, you may be eligible for a tax credit, provided you complied with state laws. Although sales to exempt organizations are exempt from tax, retail sales made by exempt organizations are subject to sales tax, unless an exemption applies. For example, a separately stated shipping charge by a common carrier is exempt if the shipping occurs after the property is sold. To be exempt, the shipping changes have to be reasonable and reflect the actual shipping and handling costs incurred in transporting the property.
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There will also still be taxes in place for alcohol and marijuana sales. Easy step by step instructions to manually calculate your paycheck’s federal income tax, Social Security tax, and Medicare tax. Although this statement is technically true, it would be more accurate to say that an estate of $1,000,001 causes the necessity of an estate tax calculation, whereas an estate of $1,000,000 does not. And, although the estate tax calculation is measured from the first dollar, the actual tax is less dramatic as compared to the entire value of the estate.
To qualify for the tax exemption, the purchase must be made during the sales tax holiday period by an individual for personal use with a total price of $1500 or less. Computers (including iPad) and computer accessories qualify for this tax exemption. The sales tax holiday applies only to eligible retail items bought for personal use by residents. Purchases by corporations or other businesses and purchases by people for business remain taxable. Clothing purchases, including shoes, jackets and even costumes, are exempt up to $175. A product that costs more than $175 is taxable above that amount, so a $200 pair of shoes would be taxed at 6.25% on the $25 above the exemption limit.
The price of each individual item must be $2500 or less; however, purchases can be made on multiple items, tax-free, even if all the items added together cost more than $2500. To qualify for the sales tax holiday exemption, the purchase must be made during the sales tax holiday period. The total sales price of all exempt items cannot exceed $750, and local tax may apply.
Once the value of the vehicle is determined, an excise at the rate of $25.00 per thousand is assessed. Excises are assessed annually, on a calendar year basis, by the Assessor of the municipality in which the vehicle is primarily garaged. Lawmakers have set August 12 and 13 as the legally required tax-free weekend for 2023.