Massachusetts highest state tax for traders?

Discussion in 'Taxes and Accounting' started by joeactuary, Feb 20, 2010.

  1. Wow, doing my taxes and I saw that Massachusetts charges 12% tax on short term gains! Holy crap! That's higher than any other state by a considerable margin.

    tax rates of other states (on the $50,001st dollar):

    Conn: 5%
    RI: 7%
    CA: 9.55% (largest I found after MA, 2 and a half points less!)
    NJ: 5.525%
    NY: 6.85%
    MD: 4.75%
    FL: 0%
    TX: 0%
    PA: 3.07%

    Looks like traders just get screwed in Taxachusetts!
  2. ET873


    Oregon comes close at 10.8% (over 125k).

    The 2009 legislature passed HB 2649, which has subsequently been referred to a vote of the people. The election will take place January 26, 2010. These increases will (or will not) become law depending on the results of that election. The department strongly recommends not filing until February 1, 2010, to ensure you file correctly under the law.

    * New marginal tax rates (tax years 2009, 2010, and 2011)
    o Taxable income above $125,000 ($250,000 joint) but not more than $250,000 ($500,000 joint) will be taxed at 10.8 percent
    o Taxable income above $250,000 ($500,000 joint) will be taxed at 11 percent
    * New marginal rates (tax years 2012 and on)
    o Taxable income above $125,000 ($250,000 joint) will be taxed at 9.9 percent
    * For 2009 only: Interest on Underpayment of Estimated Tax directly due to the tax increase will be waived
    o It is extremely important that these taxpayers file Form 10 to ensure that they are charged the correct amount of interest on any underpayment.
  3. moonmist


    In some cases, New York City could be the winner:

    APRIL 11, 2009: The Tax Capital of the World
    States are raising taxes despite the 'stimulus'; New York is No. 1.

    In New York, Assembly Speaker (and de facto Governor) Sheldon Silver and other Democrats will impose a two percentage point "millionaire tax" on New Yorkers who earn more than $200,000 a year ($300,000 for couples). This will lift the top state tax rate to 8.97% and the New York City rate to 12.62%. Since capital gains and dividends are taxed as ordinary income, New York will impose the nation's highest taxes on investment income -- at a time when Wall Street is in jeopardy of losing its status as the world's financial capital.
  4. GG1972


    Washington is really good state for taxes especially for self employed or daytraders- only drawback is gets lot of rain in winter but summers make up for that. You could always use the money saved on state taxes(none here) for vacation in winter time instead of paying the govt and Seattle is the most literrate city in entire US
  5. halligan


    Can smone clarify on taxes.
    If a trader living in San-Fransisco trades tru prop in NY.
    Initial deposit 5k, net profit after 4 month 20k.
    After that closes account wiring 25k(5k initial+20 profit)
    How much tax due to be payed.
    Would appreciate explaining in $ and percent.
  6. Mvic


    There are lots of ways around this.
  7. Can you elaborate?
  8. Mvic


    Check your PM