Taxes in Needham, Massachusetts
Complete tax guide for Needham, MA. State income tax up to 5%, 1.14% property tax, 6.93% sales tax. Calculate your total tax burden.
State Income Tax
5%
Massachusetts
Property Tax
1.14%
Effective rate
Sales Tax
6.93%
Combined rate
Tax Burden
High
Needham, MA Tax Overview
Population
31,388
Median Income
$74,500
Cost of Living
131.7 (100 = avg)
State Income Tax
5%
Median Home Price
$567,000
Needham Tax Calculator
Pre-filled with Needham median: $74,500
Total Tax Burden in Needham
$17,428
Take-Home: $57,072 · Effective Rate: 23.39%
Federal Tax
$8,004
10.74% eff.
MA State
$3,725
5.00% eff.
FICA
$5,699
7.65% eff.
Take-Home
$57,072
76.61% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $74,500.00 | $6,208.33 |
| Federal Income Tax | -$8,004.00 | -$667.00 |
| Massachusetts State Tax | -$3,725.00 | -$310.42 |
| Social Security (6.2%) | -$4,619.00 | -$384.92 |
| Medicare (1.45%) | -$1,080.25 | -$90.02 |
| Take-Home Pay | $57,071.75 | $4,755.98 |
Property Tax in Needham
Median Home
$567,000
Annual Tax
$6,464
Monthly Tax
$539
Effective Rate
1.14%
Sales Tax in Needham
Combined Rate
6.93%
State Portion
~4.4%
Local Portion
~2.5%
The combined sales tax rate in Needham is 6.93%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.93 in sales tax.
Tax Burden Comparison
| Tax Type | Needham | Massachusetts Avg | National Avg |
|---|---|---|---|
| Income Tax | 5% | 5% | 4.6% |
| Property Tax | 1.14% | ~1.14% | 1.1% |
| Sales Tax | 6.93% | ~6.93% | 7.12% |
| Overall Burden | High | — | Moderate |
Tax Saving Tips for Needham Residents
- Massachusetts's income tax rate of 5% is competitive. You may still benefit from maximizing 401(k) contributions ($23,500 limit) to reduce your taxable income at both state and federal levels.
- Property tax in Needham (1.14%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
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See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Needham, MA?
Needham, Massachusetts has a state income tax rate up to 5%. The property tax rate is 1.14% and the combined sales tax rate is 6.93%.
How much is property tax in Needham?
The effective property tax rate in Needham is 1.14%. On the median home price of $567,000, this equals approximately $6,464 per year or $539 per month. This is above the national average of 1.1%.
What is the sales tax rate in Needham?
The combined sales tax rate in Needham is 6.93%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Needham's tax burden compare to other cities?
Needham has a high overall tax burden. The effective total tax rate for a median-income household is approximately 31%. The combination of 5% state income tax, 1.14% property tax, and 6.93% sales tax determines the total burden. Cost of living index is 131.7 (100 = national average).
Are there any local taxes in Needham?
Needham does not impose a separate local or city income tax. Residents pay the state income tax of 5%, federal income tax, and FICA (Social Security and Medicare).