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Residents of Massachusetts are additionally topic to a penalty if they don’t have medical health insurance coverage, which is paid through their tax return. Most lengthy-time period capital positive aspects, as well as curiosity and dividend income, are taxed at the standard income tax price of 5.10%. Capital gains in these categories are included as taxable revenue on the Massachusetts income tax return. The desk below shows the Massachusetts personal exemption for the 2016 tax year. Along with those deductions, taxpayers can claim a private exemption to lower their taxable income. The tax is on the purchase or use of “tangible private property.” This includes practically any purchasable good, with some exceptions. Other taxes collected in Massachusetts embody a gas tax, a capital good points tax, local property taxes and an property tax. The Massachusetts income tax charge of 5.10% is higher than all but one in all the other eight states that levies a flat earnings tax.

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