A 4% income tax on millionaires will make lunch free for Massachusetts K-12 students ( www.npr.org )

Hirom , 10 months ago

an additional 4% income tax on state residents’ incomes above $1 million

The standard state income tax rate in Massachusetts is 5%.

Does that mean the highest earners have a 9% income tax in that area? Either that’s very low, or this article isn’t very clear on actual tax rates.

SomeRandomWords , 10 months ago

MA (and much of the US) has a multi-level tax system where they all stack up.

Let’s tax someone in Boston, MA making $1.5m/yr

Local = 0% State = 9% (previously 5%) Federal = 37%

So on their final dollar of income they’ll be paying 46% income tax now. Note of course because of graduated income tax schemes, that 46% is not applied to the entire $1.5m but instead only to the amount that fits into the highest bracket.

Hirom , 10 months ago

That make sense. Thanks a lot.

So overall income tax in Boston, MA for the highest bracket is 46%. That’s comparable to many european countries. Although brackets are probably very different.