MASSACHUSETTS CAPITAL GAINS TAX · TAX YEAR 2026
Massachusetts capital gains tax calculator
Massachusetts taxes long-term capital gains at 5% and short-term gains at 8.5%, and gains count toward its surtax on income over $1,107,750, where the long-term rate becomes 9%. On a $50,000 long-term gain with $75,000 of wages, a single filer owes $2,500 of Massachusetts tax and $7,500 of federal income tax, $10,000 in all, and keeps $40,000.
Tax on your gain
- Total tax on the gain
- $10,000.00
- Federal income tax
- $7,500.00
- Net investment income tax
- $0.00
- Massachusetts tax
- $2,500.00
- After-tax gain
- $40,000.00
- Effective rate
- 20.00%
Massachusetts tax by size of gain
What a single filer with $75,000 of wages owes on a long-term gain, and the state tax if the same gain were short-term. Federal tax includes the net investment income tax.
| Gain | Federal tax | State tax | State tax if short-term |
|---|---|---|---|
| $10,000 | $1,500 | $500 | $850 |
| $50,000 | $7,500 | $2,500 | $4,250 |
| $100,000 | $15,000 | $5,000 | $8,500 |
| $250,000 | $42,250 | $12,500 | $21,250 |
| $1,000,000 | $208,920 | $50,000 | $85,000 |
Massachusetts capital gains tax questions
Does Massachusetts tax capital gains?
Yes. Massachusetts taxes long-term capital gains at 5% and short-term gains at 8.5%, and gains count toward its surtax on income over $1,107,750, where the long-term rate becomes 9%.
How much Massachusetts tax is due on a capital gain?
A single filer with $75,000 of wages owes $2,500 of Massachusetts tax on a $50,000 long-term gain, 5% of the gain, and $12,500, 5%, on a $250,000 gain. Federal tax on the same gains is $7,500 and $42,250.
Does Massachusetts tax short-term capital gains differently?
Yes. A $10,000 short-term gain owes $850 of Massachusetts tax, against $500 on a long-term gain. Federal tax on it is $2,200, against $1,500.
Does the Massachusetts millionaires tax apply to capital gains?
Yes. Income over $1,107,750, gains included, pays the surtax, so the long-term rate there is 9%. With $75,000 of wages, a $2,000,000 long-term gain owes $138,434 of Massachusetts tax, against $50,000 on a $1,000,000 gain.
What the calculator leaves out
- Long-term gains on collectibles are taxed at 12%, with a 50% deduction.
Federal tax stacks the gain on wages after the 2026 standard deduction, taxes a long-term gain at the long-term capital gains rates and a short-term gain at the ordinary brackets, and adds the net investment income tax. The gain is the only investment income. Capital losses and carryovers, qualified dividends, the collectibles and section 1250 rates, the alternative minimum tax and credits are left out; enter a home sale's gain after any federal exclusion.