In November 2022, Massachusetts voters approved the new millionaires tax. Starting in 2023, income over $1 million will be taxed at a rate of 9%. This 4% surtax will affect high income earners as well as taxpayers with one-time gains such as the sale of a home or business.
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Taxpayer’s facing this surtax should consider an installment sale or filing in Massachusetts as married filing separately to mitigate the additional taxes.
Contact us at Steven M. Ellard, CPA if you would like to discuss this further.