Taxes in Massachusetts
Beginning in 1998, a number of significant changes were made to the Massachusetts tax codeincluding a series of phased cuts to the state personal income tax. These cuts have reduced our capacity to fund essential services.
Massachusetts Ranks near Middle for Taxes in FY 2014January 16, 2017
This fact sheets examines where Massachusetts ranks compared to other states in terms of the level of state and local taxation.
Where Does the Taxachusetts Label Come From?January 16, 2017
Massachusetts' taxes rank in the middle of the pack, compared to other states. Where then does the label "Taxachusetts" come from? The answer has much more to do with history than reality.
How Do Business Taxes Here Compare to Other States?November 17, 2015
This factsheet examines findings from the Council on State Taxation's (COST) annual report examining the taxation of businesses in each state. The report accounts for all state and local taxes and finds that Massachusetts is a relatively low tax state for business.
The Income Tax in MassachusettsApril 3, 2013
To pay for investments in our people, our communities, and our economic future, Massachusetts relies primarily on tax revenue. And the single largest source of tax revenue in our state is the income tax.
Examining Tax FairnessMarch 12, 2013
Overall, the Massachusetts tax system is regressive, collecting a larger share of household income from lower-income households than it does from upper-income households.
How Does the MA Sales Tax Compare?September 9, 2010 (updated August 6, 2013)
Featured Tax Reports
Effective economic policies can create a more highly productive state economy and make it possible to improve economic opportunity and security for working families. This paper examines the economic research on the relationship between effective investments in education and transportation and improved economic productivity. The paper also examines the economic effects of tax reforms that can fund those investments.
The Growing Cost of Special Business Tax Break SpendingOctober 6, 2016
The cost to the state from special business tax break spending has nearly tripled, even after adjusting for inflation, from $370 million in 1996 to over $1 billion anticipated in this fiscal year. Despite the findings of a 2012 report from a state special commission that called for limiting these breaks and studying their effectiveness, most state business tax breaks have not faced a thorough examination.
Eleven other states extend taxes on short-term rentals such as Airbnb. The factsheet explains the current Massachusetts exemption for short-term residential rentals and how taxing these bookings would work. It explains recent research on how rentals such as Airbnb can compete with traditional accommodations, and how these operations sometimes resemble a full-time business. It examines how much revenue the room occupancy tax currently generates and how much additional revenue would be raised if rentals such as Airbnb were included.
The state's Earned Income Tax Credit (EITC) aims to improve the economic security of lower income working families by increasing their after-tax earnings. A growing body of research has found that raising the incomes of lower-income families provides benefits through the life-cycle: improving the health of children and mothers; boosting school performance; and increasing long-term earnings. MassBudget's updated fact sheet examines a proposal from the Senate Ways and Means Committee to reform and increase the state EITC.
Income Tax Cuts and the Budget Deficit in MassachusettsJanuary 21, 2015
Beginning in 1998, a number of significant changes were made to the Massachusetts tax code—including a series of phased cuts to the state personal income tax. These cuts have reduced our capacity to fund essential services.
All Reports on Taxes
July 6, 2010 | PDF | Factsheet
December 2, 2009 | PDF | Budget Brief
September 30, 2009 | PDF | Factsheet
July 1, 2008 | PDF | Budget Brief
June 5, 2008 | PDF | Budget Brief
May 21, 2008 | PDF | Factsheet
May 20, 2008 | PDF | Budget Brief
May 14, 2008 | PDF | Budget Brief
April 24, 2008 | PDF | Budget Brief
April 9, 2008 | PDF | Budget Brief
July 12, 2007 | PDF
June 8, 2007 | PDF
May 14, 2007 | PDF | Factsheet
February 22, 2007 | PDF | Factsheet
January 10, 2007 | PDF
April 12, 2006 | PDF | Factsheet
March 30, 2006 | PDF | Factsheet
January 1, 2006 | Factsheet
October 5, 2005 | PDF | Factsheet
July 25, 2005 | PDF | Factsheet
April 28, 2005 | PDF | Factsheet
July 20, 2004 | PDF
May 27, 2004 | PDF | Factsheet
May 27, 2004
February 10, 2004 | PDF
January 28, 2004 | PDF
October 29, 2003 | PDF
September 25, 2003 | PDF
February 5, 2003 | PDF
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