250 years ago we fought the British over a 2% tax – today Massachusetts residents pay a 31% tax

This past weekend marked 250 years since the start of the American Revolution with the battle at Lexington and Concord. Americans fought for independence against the British for a lot of reasons, but one was “high taxes,” or about 2% total. Bostonians threw tea into the ocean, and Americans risked their lives in a revolution over high taxes and freedom.

Today, a typical single Massachusetts resident who earns $50,000 a year, owns a moderate home and car, and doesn’t smoke pays about 31% of their income to the government; over 15% to Massachusetts state and local governments, $7,841 in federal taxes and $7,540 in state/local taxes, or $15,381 in total taxes. For this article, I’ll use conservative numbers and won’t even touch the controversial “fees” in our utility bills.

Let’s break down the numbers.

The average Massachusetts resident, with a $50,000 income, owning a $338,500 home and one $20,000 vehicle, pays approximately $7,540 annually in state and local taxes, including income ($2,390), sales/use ($687.50), meals ($312.50), property ($3,520.40), motor vehicle excise ($500), and other excise taxes ($130).

Breakdown of Massachusetts State Taxes

Income Tax

• Income: $50,000.
• Taxable income after standard deductions/exemptions (~$2,200 personal exemption): $47,800.
• Tax rate: 5%.
• Annual income tax: $47,800 × 0.05 = $2,390.

Sales and Use Tax:

• Taxable spending: $10,000 (e.g., electronics, non-exempt clothing, furniture).
• Sales tax rate: 6.25%.
• Annual sales tax: $10,000 × 0.0625 = $625.

Meals Tax

• Spending on prepared food: $5,000 (e.g., dining out, takeout).
• State meals tax rate: 6.25% (no local option tax assumed).
• Annual meals tax: $5,000 × 0.0625 = $312.50.

Property Tax

• Home Value: $338,500
• Effective property tax rate: 1.04% (state average)
• Annual property tax: $338,500 x 0.0104 =$3,520.40 $3,520.40
• Note: Renters may indirectly pay property taxes via rent, but this assumes homeownership. No Community Preservation Act surcharge assumed.

Sales and Use Tax

• Spending on prepared food: $5,000 (e.g., dining out, takeout).
• Home value: $338,500.
• Effective property tax rate: 1.04% (state average).

• Annual property tax: $338,500 × 0.0104 = $3,520.40.
• Note: Renters may indirectly pay property taxes via rent, but this assumes homeownership. No Community Preservation Act surcharge assumed.

Motor Vehicle Excise Tax

• Vehicle value: $20,000 (first-year depreciation, 100% of manufacturer’s list price).
• Excise tax rate: $25 per $1,000 of value.
• Annual excise tax: $20,000 × 0.025 = $500.

Other Excise Taxes (Estimated):

• Gasoline: Assume 500 gallons/year (average for one car, ~12,000 miles at 24 mpg).
• – Tax: 24 cents/gallon × 500 = $120.
• Alcohol: Assume moderate consumption (~$200/year on taxable alcohol).
• -Tax: Varies (e.g., ~$0.55/gallon wine, $4.05/gallon liquor); estimate $10.
• Cigarettes/Tobacco: Assume non-smoker, so $0.
• Total other excise taxes: $120 + $10 = $130.

Total Annual Massachusetts Taxes

• Income Tax: $2,390
• Sales/Use Tax: $687.50
• Meals Tax: $312.50
• Property Tax: $3,520.40
• Motor Vehicle Excise Tax: $500
• Other Excise Taxes: $130
• Total: $2,390 + $687.50 + $312.50 + $3,520.40 + $500 + $130 = $7,540.40

The estimated $7,540 represents ~15.1% of the $50,000 income. Nationally, state/local taxes average ~11.2% of income, but Massachusetts’ high property and income taxes elevate this.

To estimate the federal taxes an “average person” in Massachusetts pays annually, I’ll use the same assumptions: a single adult with a $50,000 income, no dependents, and standard deductions for tax year 2024. Federal taxes include income tax, Social Security, and Medicare (payroll taxes). Below is the breakdown based on the most recent IRS and SSA data for 2024.

Break Down of Federal Taxes

Gross Income: $50,000.

Standard Deduction: $14,600.

Taxable Income: $50,000 – $14,600 = $35,400.

2024 Federal Tax Brackets (single filer, projected):

– 10% on first $11,600: $11,600 × 0.10 = $1,160.

– 12% on next $23,800 ($11,601–$35,400): $23,800 × 0.12 = $2,856.

Total Income Tax Before Credits: $1,160 + $2,856 = $4,016.

Credits: None assumed (EITC phases out for single filers with no children at ~$17,000 adjusted gross income).

Final Income Tax: $4,016.

Social Security Tax:

Rate: 6.2% on earnings up to the 2024 wage base limit ($168,600).

Taxable Wages: $50,000 (well below the cap).

Social Security Tax: $50,000 × 0.062 = $3,100.

Medicare Tax:

Rate: 1.45% on all earnings (no cap). No additional Medicare surtax (0.9% for high earners) applies, as income is below $200,000.

Medicare Tax: $50,000 × 0.0145 = $725.

Total Federal Taxes

Federal Income Tax: $4,016

Social Security Tax: $3,100

Medicare Tax: $725

Total: $4,016 + $3,100 + $725 = $7,841

Combined State and Federal Tax Burden

From the prior response, state/local taxes for this person are $7,540.

Federal taxes: $7,841.

Total Tax Burden: $7,540 + $7,841 = $15,381, or ~30.8% of $50,000 income.

The average Massachusetts resident with a $50,000 income pays approximately $7,841 in federal taxes annually, including $4,016 in income tax, $3,100 in Social Security tax, and $725 in Medicare tax. Combined with state/local taxes ($7,540), their total tax burden is ~$15,381 or 30.8% of income.

Data and sources used for the “typical Person” in Massachusetts

• Income: Median personal income in Massachusetts is ~$50,000 (U.S. Census Bureau, 2023, adjusted for inflation).
• Housing: Owns a home valued at the state median of ~$338,500 (Tax Foundation, 2023), with an average effective property tax rate of 1.04%.
• Vehicle: Owns one vehicle valued at ~$20,000 (first-year depreciation, typical for a mid-range car).
• Spending: Average consumer spending on taxable goods/services (~$10,000/year on sales-taxable items, $5,000 on meals, per Bureau of Labor Statistics Consumer Expenditure Survey, adjusted).
• Location: Resides in a municipality with average property tax rates and no additional local option taxes (e.g., meals or marijuana taxes) for simplicity.
• Other: No dependents, no special exemptions (e.g., senior, veteran), and no income over $1 million (excluding the 4% surtax).