Calculate your federal and Massachusetts capital gains tax liability
Calculate Your
Massachusetts Capital Gains Tax
Massachusetts taxes long-term gains at 5% and short-term gains at 12%. An additional 4% surtax applies to all income over $1 million.
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Massachusetts Capital Gains Tax Highlights
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Calculate your capital gains tax for Massachusetts
📊 Enter your annual taxable income before including this capital gain. This determines your capital gains tax bracket.
📊 Choose your investment holding period
Calculator optimized for Massachusetts tax rates
Tax Calculation Results
How Massachusetts Taxes Capital Gains
Massachusetts taxes long-term gains at 5% and short-term gains at 12%. An additional 4% surtax applies to all income over $1 million.
2025 Tax Brackets
Massachusetts Tax Details
Tax Rate Structure
Massachusetts provides preferential treatment for certain types of capital gains.
Key Requirements
Massachusetts Tax Strategies
- • Consider timing of asset sales for tax efficiency
- • Coordinate with federal capital gains strategies
- • Review loss harvesting opportunities
• Consult with Massachusetts tax professional for complex situations
Related Tax Services
Real Estate in Massachusetts
Real estate capital gains in Massachusetts are subject to both federal and state tax considerations:
Massachusetts Real Estate Tax Rate
Real estate capital gains in Massachusetts are taxed with preferential treatment up to 16.0%.
Primary Residence
Federal Rules
Massachusetts State Rules
State tax applies to gain above federal exclusion
Must file state return if gain exceeds exclusion
Additional Requirements:
- • Follows federal IRC Section 121.
Investment Property
Tax Deferral Strategies
1031 Like-Kind Exchanges
Defer federal taxes on investment property exchanges
Transfer Costs
Transfer Tax
Local Variations:
- • Barnstable County has an optional additional transfer tax.
Available Exemptions:
- • Certain family transfers
- • Transfers to secure a debt.
Recording Fees
Additional Fees:
- • A Registered Land fee of $25 may apply.
Special Deductions & Notes:
- • Depreciation must be recalculated based on state rules.
Investment & Tax Services
Property Tax Exemptions
Homestead
$500K
Maximum exemption
Senior (65+)
$1K
Additional exemption
Massachusetts Real Estate Specifics
Fair Share Amendment Surtax: 4% on annual income over $1 million (over $1000K)
• The 4% surtax on income over $1 million can significantly impact large capital gains from real estate sales.
• Massachusetts does not allow federal bonus depreciation.
• The state's "Deeds Excise Tax" is paid by the seller upon transfer of property.
Real Estate & Investment Services
Massachusetts Filing Requirements
Due Dates
Required Forms
- • Form 1
- • Capital gains schedule
- • Federal Form 8949 & Schedule D
Payment Options
- • Online payment portal
- • Electronic funds transfer
- • Check or money order
Tax Professional Services
Compare Massachusetts to Other States
Tax Calculation Results
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