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What is Massachusetts Form 355s? Business corporations with taxable years ending in the same month as the taxable year for which the combined report is being filed will pay the non-income measure of excise tax as part of the combined report.
The state income tax is charged at a flat rate of 5%, and the sales tax is charged at a rate of 6.25%.
For tax year 2022, Massachusetts has a 5.0% tax on both earned (salaries, wages, tips, commissions) and unearned (interest, dividends, and capital gains) income. Certain capital gains are taxed at 12%.
Massachusetts Form 355 Excise Tax includes a tax of $2.60 per $1,000 on taxable Massachusetts tangible property or taxable net worth, whichever applies, and a tax of 8.0% on income attributable to Massachusetts.
An S corporation is subject to the non-income measure of the corporate excise at a rate of $2.60 per $1,000 of either taxable Massachusetts tangible personal property or taxable net worth.
Sales tax. The Massachusetts sales tax is 6.25% of the sales price or rental charge of tangible personal property (including gas, electricity, and steam) and telecommunications services1 sold or rented in Massachusetts.