Individual taxes are flat 5.5% based on the federal adjusted gross income with a personal exemption of $4,400 single, $8,800 married filing joint, and an extra $1,000 for each dependent. Social security and many government pensions are considered exempt income. State sales tax is 6.25% with many exceptions- even clothing up to $175 is exempted from sales tax. An estate tax is levied with $1 million as the exemption amount.
Corporate taxes are officially a flat 8%, but this is a bit misleading. Massachusetts has an excise tax in addition to the corporate income tax that is 9.5% of net income in addition to $2.60 per $1,000 of tangible property or net worth. The minimum excise tax is $456, plus add another $125 for filing your annual report. For LLCs there is a simpler but still relatively pricey annual filing fee of $500. Massachusetts has a voluntary disclosure program for businesses that have been engaging in business in the state but not filing taxes there that waives penalties, only valid if you are disclosing your income before receiving notification that you are in trouble. More information on all this can be found at: http://www.mass.gov/dor/