Individual Income Tax (Chapter 235)

On net incomes of individual taxpayers. Income tax rate schedules vary from 1.4% to 8.25% based on taxable income and filing status. Long term capital gains are taxed at a maximum of 7.25%.  Itemized deductions generally follow federal law.  Taxpayers with federal adjusted gross income over certain thresholds (single, $100,000; married filing joint, $200,000; head of household, $150,000) are not allowed the deduction for state taxes. 

Standard deduction amounts are: single, $2,200; married filing joint, $4,400; married filing separate, $2,200, head of household, $3,212.

Exemptions are: individuals, $1,144 per person (double for those over 65); blind, deaf, or disabled persons, $7,000; estates, $400; simple trusts, $200; complex trusts, $80; and first $6,943 income from service as a military reservist. Military pay of residents is taxable.

Taxes must be withheld by employers; taxpayers must file estimated income returns and pay estimated taxes quarterly.

Single or Married Filing Separate:

    Taxable income                    Tax
More Than  Not More Than           Liability

$     0     $ 2,400                  1.4%
  2,400       4,800      $   34.00 + 3.2% over $2,400
  4,800       9,600         110.00 + 5.5% over $4,800
  9,600      14,400         374.00 + 6.4% over $9,600
 14,400      19,200         682.00 + 6.8% over $14,400
 19,200      24,000       1,008.00 + 7.2% over $19,200
 24,000      36,000       1,354.00 + 7.6% over $24,000
 36,000      48,000       2,266.00 + 7.9% over $48,000
 48,000     150,000       3,214.00 + 8.25% over $48,000
150,000     175,000      11,629.00 + 9.0% over $150,000
175,000     200,000      13,879.00 +10.0% over $175,000
 Over $200,000           16,379.00 +11.0% over $200,000

Married Filing Joint or Surviving Spouse:

    Taxable income                    Tax
More Than  Not More Than           Liability

$     0     $ 4,800                  1.4%
  4,800       9,600      $   67.00 + 3.2% over $4,800
  9,600      19,200         221.00 + 5.5% over $9,600
 19,200      28,800         749.00 + 6.4% over $19,200
 28,800      38,400       1,363.00 + 6.8% over $28,800
 38,400      48,000       2,016.00 + 7.2% over $38,400
 48,000      72,000       2,707.00 + 7.6% over $48,000
 72,000      96,000       4,531.00 + 7.9% over $72,000
 96,000     300,000       6,427.00 + 8.25% over $96,000
300,000     350,000      23,257.00 + 9.0% over $300,000
350,000     400,000      27,757.00 + 10.0% over $350,000
 Over $400,000           32,757.00 + 11.0% over $400,000

Unmarried Head of Household:

    Taxable income                    Tax
More Than  Not More Than           Liability

$     0     $ 3,600                  1.4%
  3,600       7,200      $   50.00 + 3.2% over $3,600
  7,200      14,400         166.00 + 5.5% over $7,200
 14,400      21,600         562.00 + 6.4% over $14,400
 21,600      28,800       1,022.00 + 6.8% over $21,600
 28,800      36,000       1,512.00 + 7.2% over $28,800
 36,000      54,000       2,030.00 + 7.6% over $36,000
 54,000      72,000       3,398.00 + 7.9% over $54,000
 72,000     225,000       4,820.00 + 8.25% over $72,000
225,000     262,500      17,443.00 + 9.0% over $225,000
262,500     300,000      20,818.00 + 10.0% over $262,500
 Over $300,000           24,568.00 + 11.0% over $300,000

Estate and Trust:

    Taxable income                    Tax
More Than  Not More Than           Liability

$     0     $ 2,000                  1.4%
  2,000       4,000      $   28.00 + 3.2% over $2,000
  4,000       8,000          92.00 + 5.5% over $4,000
  8,000      12,000         312.00 + 6.4% over $8,000
 12,000      16,000         568.00 + 6.8% over $12,000
 16,000      20,000         840.00 + 7.2% over $16,000
 20,000      30,000       1,128.00 + 7.6% over $20,000
 30,000      40,000       1,888.00 + 7.9% over $30,000
 Over $40,000             2,678.00 + 8.25% over $40,000

Distribution: State general fund and funds designated by check-off on return