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For tax year 2022, Massachusetts has a 5.0% tax on both earned (salaries, wages, tips, commissions) and unearned (interest, dividends, and capital gains) income. Certain capital gains are taxed at 12%.
Mailing addresses for Massachusetts tax forms DOR, PO Box 7000, Boston, MA 02204. Payment: Mass. DOR, PO Box 7003, Boston, MA 02204.
Massachusetts Form 1 Personal Income Tax Return for Residents. Massachusetts Form 1-NR/PY Personal Income Tax Return for Part-Year and Nonresidents. Massachusetts Form M-4868 Extension of Time to File.
Rates Type of TaxMeasureRateShort term capital gains and long-term gains on collectibles12.00%Tax year 2022 (File in 2023) NonresidentMassachusetts source income5.00%Tax year 2022 WithholdingWages5.00%EstateFederal taxable estate Massachusetts real and tangible property0.8% - 16%68 more rows
How much is the capital gains tax? It depends, but assume 15% federally unless you have either very low or very high income, and just over 5% for Massachusetts, so a total of about 20% in most instances.
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Long-term capital gains come from assets held for over a year. Short-term capital gains come from assets held for under a year. Based on filing status and taxable income, long-term capital gains for tax year 2023 (the same rate as in 2022) will be taxed at 0%, 15% and 20%. Short-term gains are taxed as ordinary income.
If you are single you can claim a standard deduction of $12,400. So, if you pay more than $12,400 in state income taxes and other itemized deductions, then consider itemizing your taxes.

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