Massachusetts Capital Gains Tax Calculator
Massachusetts taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Massachusetts income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Massachusetts state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Massachusetts Department of Revenue brackets for tax year 2025, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Massachusetts state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Massachusetts Department of Revenue so you can confirm any special rule that applies to you.
Massachusetts taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $1,000.00 in Massachusetts state tax, an effective rate on the gain of 5.00%.
How Massachusetts taxes capital gains
Massachusetts taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Massachusetts bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Massachusetts capital gains tax: frequently asked questions
How are capital gains taxed in Massachusetts?
Massachusetts taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Massachusetts income tax brackets published by the Massachusetts Department of Revenue. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Massachusetts Department of Revenue.
How much state tax will I pay on a $20,000.00 capital gain in Massachusetts?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $1,000.00 of Massachusetts state income tax for a single filer, an effective rate on the gain of 5.00%. Your figure depends on your total income and filing status; enter them above.
Does Massachusetts have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Massachusetts Department of Revenue; this calculator uses the ordinary income method and links the source.
What is Massachusetts' state income tax rate for 2025?
Massachusetts imposes a flat 5.0% income tax on most taxable income under MGL c. 62 §4. An additional 4% surtax applies to annual taxable income above $1,000,000 (indexed for inflation), making the effective rate on income above that threshold 9.0%. The surtax was established by the Fair Share Amendment to the Massachusetts Constitution, effective January 1, 2023.
What personal exemptions does Massachusetts allow?
Massachusetts does not use a standard deduction. Instead, it provides personal exemptions under MGL c. 62 §3B: $4,400 for single filers, $8,800 for married filing jointly and head of household filers, and $4,400 for married filing separately. An additional $1,000 exemption is allowed for each qualifying dependent.
Who pays the Massachusetts Millionaires' Surtax?
The 4% surtax applies to Massachusetts residents and non-residents with Massachusetts taxable income exceeding approximately $1,000,000 in a tax year. The threshold is indexed annually for inflation. Income up to the threshold is taxed at the standard 5.0% flat rate; income above the threshold is taxed at 9.0% total (5% plus the 4% surtax). The surtax was approved by voters in November 2022 and took effect January 1, 2023 under Article XLIV of the Massachusetts Constitution.
Does Massachusetts have a capital gains tax?
Yes. Massachusetts taxes short-term capital gains (assets held 12 months or less) at 8.5%, which is higher than the standard 5.0% rate. Long-term capital gains on most assets are taxed at the standard 5.0% rate. The Millionaires' Surtax applies to all income types, so capital gains that push total income above $1,000,000 are subject to the additional 4% surtax.
Official sources
- Massachusetts income tax rates applied to capital gains (tax year 2025): Massachusetts Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Massachusetts Department of Revenue.