What are the tax rates in Massachusetts?

The tax rates in Massachusetts are based on income and vary depending on your tax bracket. As of 2021, the state has a flat income tax rate of 5.0% on all individuals, regardless of their income level. Additionally, there is a 0.88% tax rate on dividends and interest income. For sales tax, the general rate is 6.25%. However, certain purchases such as groceries, clothing, and prescription drugs are exempt from this sales tax. Massachusetts also imposes a 10.1% tax rate on short-term rentals like Airbnb. Property taxes vary by city or town and are based on the assessed value of properties. It's important to consult the Massachusetts Department of Revenue or a tax professional to get the most accurate and up-to-date information on tax rates and regulations.