Massachusetts brokerage account growth calculator

What a taxable index-fund account is actually worth after expense-ratio drag and after Massachusetts takes its share of the gain — which, in most states, is not at the federal preferential rate.

Massachusetts taxes your gains as ordinary income

There is no state equivalent of the federal preferential rate here — a long-term gain is charged at Massachusetts's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. LONG-TERM gains are taxed at the ordinary 5% Part B rate under M.G.L. c. 62 sec. 4(c), which is why this is recorded as 'ordinary'. TWO CARVE-OUTS ARE NOT CAPTURED BY THAT FIELD. Short-term gains — assets held one year or less — are Part A income taxed at 8.5%, reduced from 12% by St. 2023 c. 50 sec. 8; a short-term gain will therefore be understated here. Long-term gains on COLLECTIBLES are taxed at 12% subject to a 50% deduction, roughly 6% effective. Qualified Massachusetts small-business stock held at least three years gets 3%. Capital gains ARE in the surtax base, and because negative Parts are treated as zero rather than netted, a single large gain from a home or business sale commonly triggers the 4% surtax — the Department states explicitly that there is no exclusion for gain on a personal residence.