Mass Tax Calculator

Step-by-Step Guide to Using the Massachusetts Tax Calculator

Step 1: Enter Your Annual Gross Income

Begin by entering your Annual Gross Income ($) in the designated field. This is a required entry, and the value must be zero or greater.

Step 2: Select Your Filing Status

Next, select your Filing Status from the dropdown menu. You have three options:

• Single
• Married Filing Jointly
• Head of Household

This selection is mandatory as it affects the federal taxable income calculation.

Step 3: Enter the Number of Dependents

Input the Number of Dependents you claim. This entry is required, should be zero or greater, and must be an integer value.

Step 4: Enter Optional Deductions

Optionally, you can enter your annual pre-tax contributions for:

• 401(k) Contributions ($): Insert the amount you contribute annually to your 401(k). This field is not mandatory but can reduce your taxable income.
• Pre-tax Health Insurance ($): Enter your annual health insurance premiums paid with pre-tax dollars. Like the 401(k) contributions, this field is optional and helps lower your taxable income.

Step 5: Review Your Adjusted Gross Income

The Adjusted Gross Income will be automatically calculated using the formula: grossIncome - retirement401k - healthInsurance. Verify this figure to ensure all deductions have been applied correctly.

Step 6: View your Massachusetts Taxable Income

Your Massachusetts Taxable Income will be displayed, calculated with the formula: max(0, adjustedGrossIncome - (numDependents * 1000)).

Step 7: Check the Massachusetts State Tax

The calculator will then display your Massachusetts State Tax (5%) liability, calculated as 5% of your Massachusetts taxable income.

Step 8: Federal Taxable Income

Observe your Federal Taxable Income, which considers your filing status and dependents. The calculation follows complex rules to apply standard deductions based on filing status and further deductions per dependent.

Step 9: Federal Income Tax

Your Federal Income Tax will be shown, calculated using progressive tax brackets specific to your filing status.

Step 10: Total Tax Liability

The calculator will provide your Total Tax Liability, combining both state and federal taxes.

Step 11: Calculate the Effective Tax Rate

You can see your Effective Tax Rate, representing the percentage of total taxes paid relative to your gross income.

Step 12: Determine Your Net Income

Finally, review your Net Income After Taxes. This is the amount left after all tax liabilities and optional deductions (401(k) and health insurance) have been subtracted from your gross income.