On October 31 the U.S. Census Bureau released its annual update of State and Local Government Finances, providing national data for Fiscal Year 2009. The amount of state and local taxes paid in Massachusetts as a share of total personal income was 9.8 percent in FY 2009. By this measure, Massachusetts had lower taxes than 32 other states. Measuring taxes as a share of total personal income allows for a meaningful comparison among states.

This primer provides an overview of the Commonwealth’s tax system as well as clear information and analysis of how Massachusetts compares to other states and how our state’s tax system has changed over time. Also please see individual fact sheets on the income tax, the sales tax, tax fairness, and on the “Taxachusetts” label.