Massachusetts · Property Tax Deduction
Property Tax Deduction in Massachusetts (2026)
Deduct state and local real property taxes as part of the combined SALT limit. Massachusetts has a progressive income tax with a top rate of 9%, so a Massachusetts filer's combined marginal rate on the next dollar at $96,505 of income is about 27% (22% federal + 5% MA).
2026 savings example for Massachusetts
Planning estimate for a single filer earning $96,505 (Massachusetts median household income in LevyIO's state dataset) who removes $5,000 from taxable income. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; MA tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$1,350
Federal savings
$1,100
$12,401 → $11,301 · 22% bracket
MA state savings
$250
$4,825 → $4,575 · 5% marginal
Combined marginal rate
27%
≈ $270 saved per $1,000 deducted
Statutory maximum for this item in LevyIO's dataset: $40,400.
Federal × Massachusetts marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The MA column is the state marginal rate at the midpoint of each range. The last column is the tax saved per $1,000 deducted at that combined rate.
| Federal bracket | Gross income (single) | MA marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 5% | 15% | $150 |
| 12% | $28,500 - $66,500 | 5% | 17% | $170 |
| 22% | $66,500 - $121,800 | 5% | 27% | $270 |
| 24% | $121,800 - $217,875 | 5% | 29% | $290 |
| 32% | $217,875 - $272,325 | 5% | 37% | $370 |
| 35% | $272,325 - $656,700 | 5% | 40% | $400 |
| 37% | Over $656,700 | 5% | 42% | $420 |
Eligibility & forms
Property owners who pay state/local property taxes
- Must itemize deductions
- Subject to the combined $40,400 SALT cap ($20,200 MFS)
- Not deductible for local benefits, transfer taxes, or service fees
Federal forms: Schedule A
Massachusetts filing notes
Apply the Massachusetts personal exemption before the 5% ordinary-rate estimate, and plan for the 4% surtax if taxable income approaches $1,107,750 in 2026. Do not assume all income is taxed at 9%; only the amount above the surtax threshold gets the extra 4%. The low $2M estate tax exemption affects more families.
Common mistakes: Exceeding SALT cap; Including special assessments.
Frequently asked questions
How much can the Property Tax Deduction save a Massachusetts taxpayer in 2026?
In LevyIO's example, a single filer with $96,505 of income (the Massachusetts median household income in our state dataset) who removes $5,000 from taxable income saves about $1,100 in 2026 federal tax (22% marginal bracket) plus about $250 in Massachusetts tax (5% state marginal rate), roughly $1,350 combined. It is a planning estimate computed from the 2026 IRS brackets and LevyIO's MA bracket data, not a survey figure.
What is the Massachusetts income tax rate for 2026?
Massachusetts has a progressive income tax with a top rate of 9%. The MA standard deduction in LevyIO's dataset is $0 single / $0 married. Flat 5% ordinary rate after personal exemptions, plus 4% surtax above $1,107,750 in 2026. 8.5% on short-term gains. Estate tax ($2M exemption).
Who qualifies for the Property Tax Deduction in Massachusetts?
Property owners who pay state/local property taxes. The federal rules are the same in every state; the requirements are: Must itemize deductions; Subject to the combined $40,400 SALT cap ($20,200 MFS); Not deductible for local benefits, transfer taxes, or service fees. Massachusetts filers should confirm on the MA return whether the state follows the federal treatment.
Which forms do I file to claim the Property Tax Deduction?
Federal: Schedule A. Massachusetts: check the Massachusetts Department of Revenue instructions for the matching state schedule. Common mistakes: Exceeding SALT cap; Including special assessments.
Property Tax Deduction in other states
More Massachusetts deductions and credits
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.