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Massachusetts · the numbers
Massachusetts figures at a glance, 2026
Every Massachusetts number a household meets on the 2026 return, in one place: the three rates and the surtax line, the exemptions, the deductions with dollar caps, the credits, the low-income cutoffs, the estimated-tax and extension rules, the health-penalty tiers, the estate tax line, and the dates. Each with a one-line note, and a short list of what changed from 2025.
By Charles Trautman, EA, editor
Need to Know Tax · written from Massachusetts Department of Revenue sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by a Massachusetts practitioner
Almost nothing on the Massachusetts return is indexed. The exemptions, the deduction caps, the $440 child credit and the 40% earned income match are fixed in statute and move only when the legislature votes. The two exceptions are the 4% surtax threshold, which rose to $1,107,750 for 2026, and the Senior Circuit Breaker figures, which the Department of Revenue sets each year and has not yet published for 2026. So the 2026 table below is, with those two exceptions, the 2025 table. Where the Department has not confirmed a 2026 figure, the 2025 figure is shown and marked.
Rates
| Income | 2025 | 2026 | Note |
|---|---|---|---|
| Wages, pensions, business, rent, interest, dividends | 5% | 5% | Part A and Part B income; flat, no brackets |
| Long-term capital gains (held over one year) | 5% | 5% | Same rate as wages; Part C |
| Short-term capital gains (one year or less) | 8.5% | 8.5% | Higher than the rate on wages; losses never offset wages |
| Long-term gains on collectibles | 12% | 12% | After a 50% deduction, so 6% effective |
| 4% surtax applies to taxable income over | $1,083,150 | $1,107,750 | Same line for every filing status; indexed yearly; e-file required |
| Wage withholding rate | 5% | 5% | Plus 4% on wages above the surtax line; Form M-4 |
| Local income tax | None | None | No city or town taxes income |
The rates come from the Department’s tax-rates page, updated December 30, 2025, which also set the 2026 surtax line. A dollar of short-term gain costs 8.5 cents; the same dollar held one more day past a year costs 5 cents.
Exemptions
| Exemption | 2025 | 2026 | Note |
|---|---|---|---|
| Single or married filing separately | $4,400 | $4,400 | Form 1 line 2a; not indexed |
| Head of household | $6,800 | $6,800 | Line 2a |
| Married filing jointly | $8,800 | $8,800 | Line 2a |
| Each dependent | $1,000 | $1,000 | Line 2b; no limit on number |
| Age 65 or over by December 31, per person | $700 | $700 (verify) | Line 2c; the draft 2026 form prints $1,700, the Department’s pages say $700 |
| Legal blindness, per person | $2,200 | $2,200 | Line 2d |
| Medical and dental | Schedule A line 4 | Schedule A line 4 | Only for those who itemize federally; expenses over 7.5% of federal AGI |
| Adoption agency fees | Fees paid | Fees paid | Licensed agency, minor child |
Exemptions come off 5% income first; what is left over can offset interest, dividends and capital gains. At 5%, each $1,000 of exemption is worth $50.
| Household | Exemptions | Tax saved |
|---|---|---|
| Single, under 65 | $4,400 | $220 |
| Single, 65 or older | $5,100 (verify) | $255 |
| Married, both under 65 | $8,800 | $440 |
| Married, both 65 or older | $10,200 (verify) | $510 |
| Married, two dependent children | $10,800 | $540 |
| Head of household, one child | $7,800 | $390 |
Low-income cutoffs
| Filing status | No tax at or below | Credit phases out up to |
|---|---|---|
| Single | $8,000 | $14,000 |
| Head of household | $14,400 + $1,000 per dependent | $25,200 + $1,750 per dependent |
| Married filing jointly | $16,400 + $1,000 per dependent | $28,700 + $1,750 per dependent |
2025 Form 1 instruction figures; they are fixed in statute and the 2026 instructions are expected to repeat them. The $8,000 line is also the filing threshold: a resident with more than $8,000 of Massachusetts gross income must file.
Deductions with a dollar figure
| Deduction | Figure | Note |
|---|---|---|
| Social Security, Medicare and public retirement contributions withheld | Up to $2,000 per person | Form 1 lines 11a and 11b; each spouse separately |
| Rent paid on a Massachusetts principal residence | 50% of rent, up to $4,000 | Line 14; $2,000 married filing separately; any age, any income |
| Commuter costs (MBTA, regional transit, E-ZPass MA tolls, bicycles) | Amount over $150, up to $750 per person | Schedule Y line 15 |
| Employer-provided parking and transit, pre-tax exclusion | $335 a month each | Up from $325 for 2025; the federal figure is $340 |
| MEFA U.Fund 529 or U.Plan contributions | $1,000 single / $2,000 joint | Schedule Y line 18a |
| Undergraduate student loan interest | No cap, no income limit | Schedule Y line 12; or the federal $2,500 on line 10, not both |
| College tuition | Tuition net of aid above 25% of Massachusetts AGI | Schedule Y line 11; undergraduate, residents only |
| Charitable contributions | Amount given | Schedule Y line 9c, since 2023; no need to itemize federally |
| Traditional IRA contributions | $0 | Never deductible in Massachusetts; the basis comes back at withdrawal |
| Federal tips, overtime, senior and car-loan deductions | $0 | Not allowed (TIR 26-4) |
Worked example: a single renter at $60,000
A single tenant earning $60,000 in wages, paying $2,000 a month in rent, under 65, with $4,590 of Social Security and Medicare tax withheld.
| Amount | |
|---|---|
| Wages (Form 1 line 3) | $60,000 |
| FICA and Medicare deduction, capped (line 11a) | −$2,000 |
| Rent deduction: 50% of $24,000 is $12,000, capped (line 14) | −$4,000 |
| Personal exemption, single (line 2a) | −$4,400 |
| Taxable 5% income | $49,600 |
| Massachusetts tax at 5% | $2,480 |
Without the two Massachusetts deductions the tax would be $2,780. The rent deduction alone is worth $200 a year to this tenant and is the deduction most often left off by people who prepare their own return.
Credits
| Credit | Figure | Refundable? | Note |
|---|---|---|---|
| Earned Income Credit | 40% of the federal EITC | Yes | Form 1 line 43; federal eligibility rules; 2025 investment-income cap $11,950 |
| Child and Family Tax Credit | $440 per dependent under 13, 65 or over, or disabled | Yes | Line 46; no cap on dependents, no income limit; not married filing separately |
| Senior Circuit Breaker Credit, 65+ | Maximum $2,820 for 2025; 2026 to come | Yes | Schedule CB; 2025 income limits $75,000 / $94,000 / $112,000; home assessed at $1,298,000 or less |
| Limited Income Credit | Phases tax in above the No Tax Status line | No | Figured on the Form 1 worksheet |
| Credit for tax paid to another state | Lesser of the other state’s tax or Massachusetts tax on the same income | No | Schedule OJC; states, territories and Canadian provinces, not cities |
| Lead paint removal | Up to $3,000 per unit | No | Schedule LP |
| Solar, wind and energy, principal residence | 15% of cost, up to $1,000 | No | Schedule EC |
| Septic system repair (Title 5) | A share of the repair cost, taken over several years; the 2023 law raised the limits, and the amounts are on Schedule SC (amounts to confirm) | No | Schedule SC |
| Child and dependent care credit | None | Folded into the Child and Family Tax Credit in 2023 |
The EITC is the one credit that rises every year without a vote, because it is 40% of a federal figure that is indexed. A family with three children and the maximum federal credit gets roughly $3,300 from Massachusetts. See Credits and breaks for Massachusetts families.
Paying in, filing and penalties
| Item | Figure |
|---|---|
| Return due | April 15, 2027, Form 1 or Form 1-NR/PY |
| Extended due date | October 15, 2027; automatic with no form if 80% of the tax is paid by April 15, otherwise Form M-4868 with payment |
| Extension payment that must be electronic | $5,000 or more |
| Estimated payments required when tax after withholding exceeds | $400 |
| Estimated-tax safe harbor | 80% of this year’s tax or 100% of last year’s, paid in four equal, timely installments (Form M-2210) |
| 2027 estimated due dates | April 15, June 15, September 15, 2027; January 18, 2028 |
| Who must e-file and e-pay | Everyone subject to the 4% surtax |
| Health-coverage penalty, 2026 (Schedule HC) | $0 up to 150% of poverty; $26, $51, $76, $117 or $211 a month by income tier; $2,532 maximum for a year |
| Refund timing | About 4–6 weeks e-filed, 8–10 weeks on paper; add a week for a paper check |
Beyond the income tax
| Item | 2026 |
|---|---|
| Estate tax | No tax on estates of $2,000,000 or less; rates 0.8% to 16% on the excess, effectively; not indexed; no inheritance tax, no gift tax |
| Sales and use tax | 6.25% statewide, no local add-on |
| Property tax | Set and billed by each city and town; the statewide relief for seniors is the Circuit Breaker Credit on the income tax return |
| Reciprocal wage agreements with other states | None |
| Statutory residency | A permanent place of abode in Massachusetts plus more than 183 days in the state |
What changed from 2025
Surtax threshold, $1,107,750. Up $24,600 from $1,083,150. For someone with $1.2 million of taxable income, the indexing is worth $984.
Commuter exclusion, $335 a month. Up from $325 for parking and for transit, still below the federal figure.
Health penalty tiers reset. TIR 26-1 set the 2026 monthly penalties at $26 to $211, using the 2025 federal poverty standards.
Federal conformity settled. TIR 26-4 (June 23, 2026) says Massachusetts does not follow the 2025 federal deductions for tips, overtime, seniors or car-loan interest, or 100% bonus depreciation; the business expensing changes arrive in 2027. See What’s new in Massachusetts for 2026.
Digital assets checkbox. New on the draft 2026 Form 1.
Rate cut off the ballot. The 5%-to-4% initiative was struck by the Supreme Judicial Court on June 18, 2026. The rate is 5%.
Not changed: every exemption, every deduction cap, the $440 credit, the 40% EITC, the $400 estimated-tax trigger, the $2 million estate line.
Behind the scenes: why the numbers stand still
The Massachusetts exemptions are written into chapter 62 as dollar amounts with no inflation clause, so the $4,400 single exemption, the $1,000 dependent exemption and the $700 age exemption stay where the legislature last put them. The legislature’s habit is to leave the exemptions alone and add targeted items instead: the rent deduction, the FICA deduction, the commuter deduction, the charitable deduction that took effect in 2023 and the Child and Family Tax Credit, raised to $440 for 2024 and after. The 4% surtax is the exception because the 2022 constitutional amendment that created it wrote indexing into the text. The Circuit Breaker is the other exception because its statute hands the figures to the Commissioner each year, which is why the Department publishes them late and why the 2026 numbers are not yet out.
What to bring
- Last year’s Form 1, to compare line by line
- Dates of birth for everyone on the return, for the age-65 exemption and the $440 credit
- Rent paid during 2026 and the landlord’s name and address
- W-2s, for Box 4 and Box 6 (the FICA deduction) and Box 16 state wages
- MBTA, commuter rail, E-ZPass MA and bikeshare totals for the year
- MEFA U.Fund or U.Plan contribution statement
- For anyone 65 or older who owns or rents: the 2026 property tax bills and water and sewer bills, or rent paid, for Schedule CB
- Estimated payment confirmations from MassTaxConnect, with dates
Questions people ask
What is the Massachusetts income tax rate for 2026?
5% on wages, interest, dividends, long-term capital gains and most other income; 8.5% on short-term capital gains; 12% on collectibles after a 50% deduction; and a 4% surtax on taxable income over $1,107,750.
What is the Massachusetts personal exemption for 2026?
$4,400 single or married filing separately, $6,800 head of household, $8,800 married filing jointly, plus $1,000 for each dependent, $700 for each person 65 or older and $2,200 for legal blindness. There is no standard deduction.
Is there a Massachusetts standard deduction?
No, and no itemizing either. Massachusetts allows its own deductions instead: up to $2,000 of FICA and Medicare, half of rent up to $4,000, commuter costs, charitable gifts, student loan interest and a few others. Federal Schedule A does not carry over, except that medical expenses over 7.5% of AGI become an exemption for people who itemize federally.
How much is the Massachusetts child credit?
$440 for each dependent under 13, each dependent 65 or older, and each disabled dependent or spouse, with no cap on the number and no income limit. It is refundable. Married filing separately cannot claim it.
What are the 2026 Senior Circuit Breaker figures?
Not yet published. For 2025 the maximum was $2,820, the income limits were $75,000 single, $94,000 head of household and $112,000 joint, and the home could be assessed at no more than $1,298,000. The Department sets the 2026 figures by release, usually late in the year.
When do I have to make Massachusetts estimated payments?
When your tax after withholding and credits will exceed $400. The penalty is avoided if payments equal 80% of this year’s tax or 100% of last year’s, in four equal installments. Both numbers differ from the federal ones.
Three rates, one indexed line, fixed exemptions
Know whether your gains are short- or long-term and whether your taxable income is near $1.1 million; the rest of the Massachusetts numbers are the same as last year.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
- 2025 Form 1 instructions (No Tax Status, Limited Income Credit, deductions)
- Draft 2026 Form 1, Massachusetts Resident Income Tax Return
- 2026 Form 1-ES, estimated tax vouchers and worksheet
- Form M-2210, underpayment of estimated income tax (safe harbor rules)
- Form M-4868, extension payment worksheet and voucher
Sources and where to check
- DOR: Massachusetts tax rates (updated December 30, 2025)
- DOR: Massachusetts personal income tax exemptions (updated October 30, 2026)
- DOR: Child and Family Tax Credit (updated March 11, 2026)
- DOR: Massachusetts Earned Income Tax Credit (updated December 23, 2025)
- DOR: Senior Circuit Breaker Tax Credit (updated March 3, 2026)
- DOR: Commuter deduction, income exclusion and pre-tax savings
- DOR: Education-related tax deductions
- DOR: Who must file a personal income tax return
- DOR: Personal income estimated tax payments (updated June 18, 2026)
- DOR: TIR 16-10, the automatic extension and the 80% rule
- DOR: TIR 26-1, 2026 individual mandate penalties
- DOR: TIR 26-4, conformity to the 2025 federal law
- DOR: Refund timeline (updated January 9, 2026)