Massachusetts: The Bay State

Massachusetts is located on the Atlantic coast in the northeastern United States. The state is part of the New England region. The Bay State has an area of ​​over 27,000 km² and is inhabited by almost seven million people. According to ehuacom, the Massachusetts capital, Boston, has the highest population rate of any urban center in New England.

When asked if they would make the same Massachusetts location choice again, more than three-quarters of the companies surveyed said yes. 64 percent rated the location as “good” or “very good” for business (according to a study by MassEcon). Exceptional workforce strengths, world-class industrial ecosystems, and a host of other advantages contribute to economic competitiveness. The state consistently ranks at or near the top in innovation and competitiveness of the knowledge economy. The Boston area is known as a powerful economic engine and is one of the strongest in the entire country.

Massachusetts Location Map

WORLD-CLASS WORKFORCE

It is the workers, with their extensive knowledge, technical skills and excellent training, that attract and keep companies in Massachusetts. The talent pool includes almost 3.8 million people who bring a number of first-place national awards to the state. Massachusetts has the highest percentage of college-educated residents, the best science and technology workforce, and employees do their part to make the state the most innovative in the United States. Close partnerships with R&D facilities and regional universities give the Bay State another location advantage.

In a study conducted by MassEcon, more than 90 percent of survey respondents said that the availability and quality of the workforce was important in their location selection. Additionally, 76 percent identified the local talent pool as a Massachusetts strength.

STRONGHOLD FOR FDIS

Over 1,000 international companies are based in Massachusetts and do business from here. With their investments, they allow the local economy to grow and create high-quality local jobs. Almost 230,000 residents of the state had immigrated international companies as employers in 2018. From 2013 onwards, this is a percentage increase of almost 13 percent. Almost a third of the jobs created are in the manufacturing sector.

DIVERSITY OF KEY INDUSTRIES

Boston is the center of the biotechnology industry in Massachusetts. Nearly a thousand biotech companies are based in the city and neighboring community of Cambridge. One of the reasons for this is the large number of nearby universities that deal with this topic. Renowned institutions include the Whitehead Institute for Biomedical Research and the Wyss Institute for Biologically Inspired Engineering.

In engineering, the state also benefits from the large number of educational institutions and engineering colleges. A well-educated and highly skilled workforce is a key element to the state’s collective success in engineering. Some of these top Massachusetts institutions include the Massachusetts Institute of Technology (MIT), the Franklin W. Olin College of Engineering, the Wentworth Institute of Technology, and a number of universities such as Harvard, Boston, and Tufts.

The IT industry is also very important in the Bay State. According to figures, there are about 1,700 organizations involved in the industry in the northeastern state. Bloomer Health Tech or the Health Data Analytics Institute can be cited as examples.

MASSACHUSETTS INCOME TAX

Massachusetts charges a 5% income tax. In addition, federal income taxes are payable.

MASSACHUSETTS CORPORATION TAX

Massachusetts charges an 8% corporate income tax. In addition, federal corporation tax is payable.

MASSACHUSETTS SALES TAX

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales tax rate in Massachusetts

The sales tax in Massachusetts is 6.25% at the state level. Municipalities or counties no sales tax.

Massachusetts Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

October 1, 2019

Transactions included:

Sale of tangible personal property and services

Treatment of tax-exempt transactions:

Exempt Sales and Exempt Services are included in the threshold

Reason:

Sale only

Sales/Transactions Threshold:

$100,000

Evaluation period:

The threshold applies to the previous or current tax year

Extra information:

  • The Treasury repealed the cookie nexus rule
  • Registration Requirements: Massachusetts requires a remote vendor to register by the first day of the first month to collect and remit sales tax, beginning two months after the month in which the threshold was exceeded. Other rules may apply to companies that crossed the threshold in 2019. See 830 CMR 64H.1.9 formore information.
  • Frequently asked questions about remote providers
  • Bill H.4000

Massachusetts Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

October 1, 2019

Economic Nexus Threshold:

More than $100,000 in Massachusetts taxable or exempt sales of tangible personal property or services in the current or previous tax year. When calculating the threshold:

  • Remote sellers should exclude sales made through a bulk marketplace
  • Marketplace intermediaries should include all sales through the marketplace

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Massachusetts Department of Revenue (DOR) and collect Massachusetts sales tax on sales that are not taxed by a Marketplace Agent once you have crossed the Economic Nexus Threshold.
  • Remote Marketplace Vendors: You may need to register with the DOR once you cross the Economic Nexus Threshold. Contact the DOR for more information.

In-State Multichannel Sellers: You must register with the DOR and collect tax on sales that are not taxed by a marketplace intermediary.

In-State Marketplace Vendors: You may need to register; Contact the DOR for more information.