Taxes in Salem, Massachusetts
Complete tax guide for Salem, MA. State income tax up to 5%, 1.16% property tax, 6.6% sales tax. Calculate your total tax burden.
State Income Tax
5%
Massachusetts
Property Tax
1.16%
Effective rate
Sales Tax
6.6%
Combined rate
Tax Burden
High
Salem, MA Tax Overview
Population
44,480
Median Income
$75,200
Cost of Living
128.9 (100 = avg)
State Income Tax
5%
Median Home Price
$563,000
Salem Tax Calculator
Pre-filled with Salem median: $75,200
Total Tax Burden in Salem
$17,671
Take-Home: $57,529 · Effective Rate: 23.50%
Federal Tax
$8,158
10.85% eff.
MA State
$3,760
5.00% eff.
FICA
$5,753
7.65% eff.
Take-Home
$57,529
76.50% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $75,200.00 | $6,266.67 |
| Federal Income Tax | -$8,158.00 | -$679.83 |
| Massachusetts State Tax | -$3,760.00 | -$313.33 |
| Social Security (6.2%) | -$4,662.40 | -$388.53 |
| Medicare (1.45%) | -$1,090.40 | -$90.87 |
| Take-Home Pay | $57,529.20 | $4,794.10 |
Property Tax in Salem
Median Home
$563,000
Annual Tax
$6,531
Monthly Tax
$544
Effective Rate
1.16%
Sales Tax in Salem
Combined Rate
6.6%
State Portion
~4.1%
Local Portion
~2.5%
The combined sales tax rate in Salem is 6.6%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.60 in sales tax.
Tax Burden Comparison
| Tax Type | Salem | Massachusetts Avg | National Avg |
|---|---|---|---|
| Income Tax | 5% | 5% | 4.6% |
| Property Tax | 1.16% | ~1.16% | 1.1% |
| Sales Tax | 6.6% | ~6.6% | 7.12% |
| Overall Burden | High | — | Moderate |
Tax Saving Tips for Salem 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 Salem (1.16%) 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.
Other Cities in Massachusetts
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ModerateCambridge
Very HighLowell
HighBrockton
HighNew Bedford
HighCalculate Your Full Massachusetts Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Salem, MA?
Salem, Massachusetts has a state income tax rate up to 5%. The property tax rate is 1.16% and the combined sales tax rate is 6.6%.
How much is property tax in Salem?
The effective property tax rate in Salem is 1.16%. On the median home price of $563,000, this equals approximately $6,531 per year or $544 per month. This is above the national average of 1.1%.
What is the sales tax rate in Salem?
The combined sales tax rate in Salem is 6.6%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Salem's tax burden compare to other cities?
Salem has a high overall tax burden. The effective total tax rate for a median-income household is approximately 30.9%. The combination of 5% state income tax, 1.16% property tax, and 6.6% sales tax determines the total burden. Cost of living index is 128.9 (100 = national average).
Are there any local taxes in Salem?
Salem 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).