Massachusetts Income Tax Calculator 2026

One rate for wages, different rates for some gains

Massachusetts taxes wages, salaries, interest, dividends and long-term capital gains at 5%. Short-term capital gains are taxed at 8.5% and long-term gains on collectibles at 12%. On top of that, the 4% surtax applies to total taxable income above $1,107,750 in 2026, the same threshold for every filing status.

There is no standard deduction. Instead you subtract personal exemptions and a set of Massachusetts-specific deductions from income.

Exemptions and deductions that matter most

Massachusetts deductions are fixed dollar amounts, so they are worth the same 5% to everyone below the surtax.

• Personal exemption: $4,400 single, $6,800 head of household, $8,800 married filing jointly, plus $1,000 per dependent.
• Rental deduction: half of the rent you paid on your Massachusetts principal residence, up to $4,000 per return ($2,000 for each spouse filing separately unless they agree a different split). Security deposits, last month’s rent paid in advance and condo fees do not count.
• Social Security, Medicare and retirement contributions deduction: up to $2,000 of FICA, Medicare and U.S. or Massachusetts public retirement contributions; on a joint return each spouse can deduct up to $2,000 of their own contributions.
• Age 65 or over: an extra $700 exemption for each spouse who is 65 by December 31, and $2,200 for legal blindness.
• Social Security benefits are not included in Massachusetts income at all, because Massachusetts has not adopted the federal rule that taxes part of them.

Worked example: a renter earning $70,000

A single renter with $70,000 of wages who pays $2,000 a month in rent subtracts the $4,400 exemption, the $2,000 maximum deduction for FICA and retirement contributions, and a $4,000 rental deduction (half of $24,000 rent is $12,000, capped at $4,000). Taxable income is $59,600, and tax at 5% is $2,980.

Without the rental deduction the same person would pay $3,180, so the deduction is worth $200 a year to most renters who hit the cap.

The Child and Family Tax Credit

Massachusetts gives a $440 credit for each eligible person you care for, from tax year 2024 on, with no limit on the number of individuals. It covers dependent children under 13, a dependent or spouse with a disability, and dependents age 65 or older. The credit is refundable, so a family with two children under 13 receives $880 even if they owe little or no Massachusetts tax.

Single filers, heads of household and married couples filing jointly can claim it; married couples filing separately cannot, and full-year nonresidents cannot. Part-year residents claim a prorated amount on Form 1-NR/PY.

Homeowners and renters age 65 or older may also qualify for the refundable Senior Circuit Breaker credit, based on real estate taxes paid on a Massachusetts principal residence; the maximum for tax year 2025 was $2,820.

Filing Form 1 or Form 1-NR/PY

Residents file Form 1 and nonresidents and part-year residents file Form 1-NR/PY. You must file if your Massachusetts gross income is more than $8,000. The 2026 return is due April 15, 2027, or the next business day if that falls on a weekend or holiday. You get an automatic six-month extension to file if you have paid at least 80% of the tax due by the due date.

You are a full-year resident not only if your home is in Massachusetts all year, but also if you maintain a home in Massachusetts and spend more than 183 days of the year in the state. Part-year residents are those who move into or out of Massachusetts during the year.

Short-term gains and surtax income are easy to miss in estimates. If you sell investments held less than a year or expect income near the surtax threshold, consider estimated payments, because withholding on wages alone may not cover the higher rates.