-Massachusetts is one of the few states with an estate tax.
-Massachusetts is the 2nd most expensive state to set up an LLC.
The state of Massachusetts has a flat Corporate income tax rate of 8.00% on all income on C Corporations. For other businesses that flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., they are taxed at the individual income tax rate which is 5.00% of your AGI.
In addition to the business income tax, Massachusetts also has an excise tax that applies to Corporations but not LLCs. The minimum tax, regardless of Corporate status, is $456 annually. The Corporate excise tax is 0.26% of the Corporation’s net worth.
However, if your Corporation is an S Corporation, the excise tax also includes a tax on Gross Receipts. Here is the tax range on gross receipts:
Unlike most states, Massachusetts only has a state sales tax rate (i.e. no local sales tax rate). Their state sales tax rate is 6.25%.
The average property tax rate for residential property in the state of Massachusetts is 1.15%. Which puts it slightly above the national average of 1.05%.
The state of Massachusetts does have an estate tax that ranges from 0.8% to 16% depending on the size of the estate. The first $1 Million dollars of the estate is exempt from tax.
Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:
Massachusetts is the 2nd most expensive state in the country to open an LLC. Here are some important facts: