Understanding Personal Income Tax in Massachusetts
Massachusetts personal income tax is discussed.
If you are a resident or non-resident of Massachusetts and receive taxable income individually from property owned or business transacted in Massachusetts, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation, partnership, limited liability company, or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you.
Wages, salaries, business income, qualified interest and dividends are taxed at a 5.25% tax rate (5.3% before 2012). Short-term capital gains are taxed at 12 percent, while long-term capital gains are taxed at the 5.25% tax rate (5.3% before 2012).