Massachusetts charges a flat 5% and gives a personal exemption of $4,400 single, $8,800 joint, instead of a standard deduction. It adopted neither federal deduction, so tips and overtime are taxed by Massachusetts as before. Not included here: the extra 4% surtax on income above roughly $1.1 million, which does not affect the incomes this calculator is built for.
What it means on a real paycheck
Take a single filer earning $50,000 a year, $8,000 of it in tips. Against the same person with no tips to declare, the federal deduction is worth $960.
In Massachusetts it is worth nothing extra. The state bill is identical either way, so $960 is the whole of it.
How Massachusetts works out the tax
Massachusetts charges a flat 5%, after a standard deduction of $4,400 single or $8,800 filing jointly. It begins from your federal adjusted gross income and applies its own reliefs from there.