What Do Bay Staters Pay Annually in Taxes?

With Tax Day still fresh on everyone’s mind, many Bay Staters are taking stock of what they pay – and questioning whether they’re getting enough in return.

Fortunately, Massachusetts House Speaker Ron Mariano kept his word. The House Ways & Means Fiscal Year (FY) 2026, released this week, has no new taxes or fees. That’s a welcome signal to everyday citizens who feel like they’ve already been over-taxed, under-served, and left to carry the fiscal burden.

So just how much is the average Massachusetts resident paying in taxes annually?

The U.S. Census Bureau tracks tax collections by state and local governments through its Annual Survey of State Government Tax Collections (STC) and Annual Survey of State and Local Government Finances (ALFIN). These federal data sources provide detailed information about the amount and types of taxes collected by state governments and local governments within each state.

Analysis of both state tax collections data from 2024 and the latest-available local tax collections data estimate that Massachusetts residents shouldered a tax burden of roughly $9,000 per capita, or 9.7 percent of total Massachusetts personal income, in 2024.¹

The largest share of Massachusetts taxpayer dollars go toward individual income taxes (roughly $3,101 per capita or 3.3 percent of personal income). Another large share goes to property taxes which are levied by local governments in Massachusetts. Property taxes account for roughly $2,933 per capita, or 3.1 percent of total personal income.²

Sales taxes are also high, accounting for roughly $1,795 per capita or 1.9 percent of personal income. These types of taxes include most purchases, as well as specific levies on gas, alcoholic beverages, public utilities, and insurance premiums.

The license taxes are taxes collected on things like occupational licenses as well as drivers’ licenses.

To put this in perspective, Massachusetts residents are paying these taxes on top of federal income, social security, and FICA taxes. The average U.S. taxpayer pays 19 percent of personal income in federal taxes.³ That means the average Mass. taxpayer could be spending nearly 30 percent of their personal income solely on federal, state, and local taxes – before buying food, paying a rent or mortgage, or spending on other basic necessities.

How do average Massachusetts taxes compare with other states?

For taxes collected by the state government, Massachusetts has one of the highest tax burdens in the nation. On a per capita basis, Massachusetts has the 6th highest state- and locally-collected taxes in the country, placing it among other high-tax markets like New York, California, Hawaii, and Illinois. 

Massachusetts earned a similarly poor ranking in the Tax Foundation’s 2025 State Tax Competitiveness Index released earlier this year. On the contrary, key competitor states New Hampshire and Florida are in the top half of states with the lowest tax burdens – both well below the national average of $6,636 per capita. 

For residents, this ranking is less of a statistic and more of a lived reality. According to Mass Opportunity Alliance polling, 82.3 percent of Massachusetts voters believe their taxes are too high. In another MOA poll, the majority of voters (70.6 percent) cite their income taxes as the most burdensome state tax. Local property taxes, the sales tax, and the gas tax are also major sources of strain.

In September, 65.7 percent of respondents said high taxes are a leading reason people are packing up and leaving the Commonwealth. It’s not just retirees or high earners, either — younger residents cite taxes as a top concern. 

Conclusion

Refraining from charging new taxes is an important step in recognizing the burden they place on Massachusetts taxpayers. Speaker Mariano’s commitment to not raising taxes suggests he’s heard the chorus of concerns coming from taxpayers this Tax Week. As residents pore over their returns and wonder where their money is going, they’re not just demanding relief — they’re calling for accountability, efficiency, and a government that lives within its means.

Data Notes:

¹ Total personal income in Massachusetts is reported at the state level by the U.S. Bureau of Economic Analysis.

² To get a full picture of how state and local taxes contribute to residents’ overall tax bill, we included 2022 (latest-available) estimates of local tax collections from ALFIN to supplement state tax collections in 2024 released by STC. Thus, this figure is meant as an estimate rather than a full figure. In previous years of data, ALFIN and STC state tax collections match as numbers are historically revised.

³ Calculated based on federal tax revenue in 2023, the latest-available figure reported by the U.S. Internal Revenue Service and total personal income for all U.S. states reported by the U.S. Bureau of Economic Analysis.