No city or town in Massachusetts charges a local income tax. The Commonwealth reserves income taxation to itself under Chapter 62 of the General Laws, so wherever you live or work in the state, the only income tax you file is the state return.1General Court of Massachusetts. Massachusetts General Laws Chapter 62 – Taxation of Incomes Boston, Worcester, Springfield, Cambridge, and every smaller municipality all operate under the same rule: no municipal wage tax, no city income tax, no school-district income tax.
Why Cities and Towns Can’t Add One
Chapter 62 lays out the entire framework for taxing personal income in Massachusetts, and the authority sits with the state alone.1General Court of Massachusetts. Massachusetts General Laws Chapter 62 – Taxation of Incomes Nothing in that chapter or the state constitution gives a municipality the power to layer its own income tax on top.
That makes Massachusetts different from states like Ohio, Pennsylvania, and Maryland, where hundreds of municipalities levy their own wage or income taxes and workers can end up filing with a state, a county, a city, and a school district all at once. Roughly 17 states plus the District of Columbia allow some form of local income taxation. Massachusetts isn’t one of them.
The practical result: a resident of Boston and a resident of a small Berkshire County town pay the same income tax on identical earnings. Where you live inside Massachusetts has no effect on your income tax bill.
What You Pay the State Instead
Massachusetts applies a flat 5% tax on most types of income, including wages, salaries, interest, and dividends.2Mass.gov. Massachusetts Tax Rates The rate is the same for every taxpayer on the bulk of their earnings.
One surtax sits on top. Under the Fair Share Amendment that voters approved in 2022 as Article 121 of the Amendments to the Massachusetts Constitution, an additional 4% applies to the portion of annual taxable income that exceeds $1 million. That brings the effective rate on income above the threshold to 9%. The $1 million trigger is adjusted annually for inflation, so the exact cutoff shifts slightly from year to year. Revenue from the surtax is constitutionally earmarked for public education and transportation.
State returns are due April 15.3Massachusetts Department of Revenue. Massachusetts DOR Tax Due Dates and Extensions If you miss the deadline or underpay, the Department of Revenue charges a penalty of 1% per month on the unpaid balance, up to a maximum of 25%, with interest accruing on top.4Massachusetts Department of Revenue. Massachusetts Tax Penalty Rates
Where Local Taxes Actually Show Up
Cities and towns can’t touch your paycheck, but they do raise substantial revenue through several other channels. If you were expecting to see a municipal line item on your tax life in Massachusetts, this is where it appears.
Property Tax
Property tax is the backbone of municipal finance here. Governed by Chapter 59, it funds schools, police and fire, roads, and other core services.5General Court of Massachusetts. Massachusetts General Laws Chapter 59 – Assessment of Local Taxes Local assessors value each parcel, and each municipality sets its own rate. Because rates and valuations vary widely, where you buy a home has a much bigger impact on your local tax burden than where you earn your paycheck. Some municipalities have also adopted the Community Preservation Act, adding a surcharge of up to 3% on property tax bills to fund open space, historic preservation, affordable housing, and recreation.
Motor Vehicle Excise
Every registered vehicle in Massachusetts is subject to an annual excise tax at $25 per $1,000 of assessed value. The assessed value isn’t the sale price; it’s a percentage of the manufacturer’s list price that steps down each year — 90% in the year of manufacture, then 60%, 40%, 25%, and 10% from the fifth year on.6Massachusetts Department of Revenue. Motor Vehicle Excise The bill comes from the municipality where the vehicle is garaged, and the revenue stays local. Ignoring it is costly: unpaid excise can lead to non-renewal of both your driver’s license and your vehicle registration.7General Court of Massachusetts. Massachusetts General Laws Chapter 60A – Excise Tax on Registered Motor Vehicles in Lieu of Local Tax
Local Meals and Room Occupancy Options
Municipalities may adopt a local meals excise of 0.75% on restaurant food, on top of the state’s 6.25% sales tax.8General Court of Massachusetts. Massachusetts General Laws Chapter 64L Section 2 – Local Sales Tax on Restaurant Meals Cities and towns may also impose a local room occupancy excise of up to 6% on short-term lodging, with Boston authorized to charge up to 6.5%.9Massachusetts Department of Revenue. Room Occupancy Excise Tax These are consumption taxes paid at the point of sale, not income taxes.
Massachusetts does not allow municipalities to add local sales taxes on general retail purchases. The 6.25% state sales tax applies uniformly statewide.10Massachusetts Department of Revenue. Sales and Use Tax for Businesses
Commuters and Cross-Border Workers
The no-local-income-tax rule applies to nonresidents too. If you commute into Massachusetts from Connecticut, Rhode Island, or New Hampshire, you owe state income tax on your Massachusetts-source income, but no city or town adds anything on top. Nonresidents must file if their Massachusetts-source income exceeds $8,000 or their personal exemption amount, whichever is lower.11Massachusetts Department of Revenue. 2025 Form 1-NR/PY Instructions Part-year residents file the same form and report income received during their period of residency.
Massachusetts has no income tax reciprocity agreements with any neighboring state, so you can’t skip the Massachusetts filing by paying only your home state. You file here on the income you earned here, then claim a credit on your home state return for what you paid Massachusetts, if your home state offers one.
Working the other direction, a Massachusetts resident earning wages in another state may owe tax there. Chapter 62, Section 6(a) allows a credit for income taxes paid to other states on the same income, limited to the lesser of what you actually paid the other state or what Massachusetts would charge on it.12General Court of Massachusetts. Massachusetts General Laws Chapter 62 Section 6 – Credits Against Tax The credit excludes any penalties or interest you owed elsewhere and must be reduced by any federal credit you claimed for the same taxes.13Massachusetts Department of Revenue. Directive 93-2 – Credit for Taxes Due to Other Jurisdictions One limitation worth knowing: this credit applies only to taxes paid to a state, territory, or Canadian province. It does not cover a local income tax imposed by a city in another state, so if you work in a jurisdiction like New York City or Philadelphia, that municipal piece is not creditable against your Massachusetts bill.