Massachusetts

===Taxation===

Depending on how it is calculated, state and local tax burden in Massachusetts has been estimated among U.S. states and Washington D.C. as 21st-highest (11.44% or $6,163 per year for a household with nationwide median income)<ref>{{cite web|url=https://wallethub.com/edu/best-worst-states-to-be-a-taxpayer/2416/#complete-rankings.|title=2016's States with the Highest & Lowest Tax Rates|access-date=June 18, 2016}}</ref> or 25th-highest overall with below-average corporate taxes (39th-highest), above-average personal income taxes, (13th-highest), above-average sales tax (18th-highest), and below-average property taxes (46th-highest).<ref>{{cite web|url=http://taxfoundation.org/article/2016-state-business-tax-climate-index|title=2016 State Business Tax Climate Index|access-date=June 18, 2016|archive-date=June 21, 2016|archive-url=https://web.archive.org/web/20160621014424/http://taxfoundation.org/article/2016-state-business-tax-climate-index|url-status=dead}}</ref> In the 1970s, the Commonwealth ranked as a relatively high-tax state, gaining the pejorative nickname "Taxachusetts". This was followed by a round of tax limitations during the 1980s—a conservative period in American politics—including [[Proposition 2½]].<ref>{{cite web|url=https://www.bostonglobe.com/opinion/2014/03/28/taxachussetts-misnomer-least-for-now/JwFnatLJTZ2eoGxDYzT82J/story.html|title='Taxachusetts' is a misnomer, at least for now|website=Boston Globe|first=Tom|last=Keane|date=March 28, 2014}}</ref>

As of January 1, 2020, Massachusetts has a flat-rate personal income tax of 5.00%,<ref>{{cite web |title=Taxes & Rates Income |publisher=Massachusetts Department of Revenue |access-date=October 16, 2021 |url=https://www.mass.gov/guides/personal-income-tax-for-residents}}</ref> after a 2002 voter referendum to eventually lower the rate to 5.0%<ref>{{cite web |title=Massachusetts Implements Reduction in Personal Income Tax Rates |publisher=[[The Tax Foundation]] |access-date=May 10, 2012 |url=http://taxfoundation.org/blog/show/27852.html |archive-date=January 20, 2012 |archive-url=https://web.archive.org/web/20120120200319/http://www.taxfoundation.org/blog/show/27852.html }}</ref> as amended by the legislature.<ref>{{Cite web|url=https://www.bostonglobe.com/metro/2014/12/31/income-tax-rate-fall-jan/0z4PxvHvtSxWOFja3EDZfO/story.html|title=Mass. tax rate takes slight dip|website=The Boston Globe}}</ref> There is a [[tax exemption]] for income below a threshold that varies from year to year. The corporate income tax rate is 8.8%,<ref name=MassTaxes1>{{cite web |title=Massachusetts |publisher=[[The Tax Foundation]] |access-date=April 27, 2015 |url=http://taxfoundation.org/state-tax-climate/massachusetts |archive-date=May 5, 2015 |archive-url=https://web.archive.org/web/20150505003342/http://taxfoundation.org/state-tax-climate/massachusetts |url-status=dead }}</ref> and the short-term [[capital gains tax]] rate is 12%.<ref name=MassTax2>{{cite web |title=Tax Rates |publisher=Massachusetts Department of Revenue |access-date=April 27, 2015 |url=http://www.mass.gov/dor/individuals/filing-and-payment-information/guide-to-personal-income-tax/tax-rates.html |archive-date=April 22, 2015 |archive-url=https://web.archive.org/web/20150422150419/http://www.mass.gov/dor/individuals/filing-and-payment-information/guide-to-personal-income-tax/tax-rates.html |url-status=dead }}</ref> An unusual provision allows filers to voluntarily pay at the pre-referendum 5.85% income tax rate, which is done by between one and two thousand taxpayers per year.<ref>{{cite web|url=http://cltg.org/cltg/clt2005/05-04-15.htm#Globe1|title=CLT Update: Apr 15, 2005, "We didn't need or want a tax cut—but it's ours now!"|website=cltg.org}}</ref>

The state imposes a 6.25% [[sales tax]]<ref name=MassTaxes1/> on retail sales of tangible personal property—except for groceries, clothing (up to $175.00), and periodicals.<ref name=SalesTax1>{{cite web |title=Sales and Use Tax |location=MA, US |publisher=Massachusetts Department of Revenue |access-date=|date = January 14, 2022 |url=http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/salesuse-tax-guide.html}}</ref> The sales tax is charged on clothing that costs more than $175.00, for the amount exceeding $175.00.<ref name=SalesTax1/> Massachusetts also charges a [[use tax]] when goods are bought from other states and the vendor does not remit Massachusetts sales tax; taxpayers report and pay this on their income tax forms or dedicated forms, though there are "safe harbor" amounts that can be paid without tallying up actual purchases (except for purchases over $1,000).<ref name=SalesTax1 /> There is no [[inheritance tax]] and limited Massachusetts [[estate tax]] related to federal estate tax collection.<ref name=MassTax2/>