A tax is a charge or levy of money made by a governmental entity (state, local, or federal) against a taxpayer—usually a U.S. citizen or a person living or working in the United States. There are many kinds of taxes, including income tax, capital-gains tax, property tax, franchise tax, gift tax, ad valorem tax, sales tax, use tax, inheritance tax, and estate tax.

In Massachusetts, as in other states, taxpayers are subject to various types of taxes levied by state and local governments, as well as the federal government. The Commonwealth imposes a state income tax, which is a flat rate on all taxable income. Capital gains are also taxed, with the rate depending on the type of asset and the duration of ownership. Property taxes are assessed by local municipalities on real estate and are one of the primary sources of revenue for local governments. Massachusetts does not have a franchise tax. The state levies a sales tax on most goods and some services, and a use tax is applied to out-of-state purchases brought into Massachusetts. While there is no gift tax at the state level, the federal government imposes a gift tax on transfers of wealth during an individual's lifetime. Massachusetts does not have an inheritance tax, but it does have an estate tax, which applies to the estates of decedents who were residents or owned property in the state. It's important to note that tax laws are complex and subject to change, and an attorney or tax specialist should be consulted for specific advice and planning.