State tax debt in Massachusetts is collected by Massachusetts Department of Revenue, not the IRS. Payment agreements are set up in MassTaxConnect.
Key facts for Massachusetts
- State income tax
- 5% on most income for 2025. A 4% surtax applies over $1,107,750 in 2026. Source
- Payment plan
- Payment agreements are set up in MassTaxConnect. Source
- Offer program
- Yes. The offer must be at least $5,000, with 20% paid up front. Use Form M-656. Source
- Collection tools
- Bank levies and wage levies. Source
- License risk
- Professional licenses, driver's licenses and car registrations can be suspended. Source
- Taxpayer advocate
- The DOR Taxpayer Advocate reviews long running cases. (617) 626-2280. Source
Two debts, two sets of rules
- The IRS collects federal taxes, with its own letters and plans.
- Massachusetts Department of Revenue collects Massachusetts taxes, with its own rules.
- A plan with the IRS does not stop the state from collecting, and the other way around.
Common questions in Massachusetts
Who collects state taxes in Massachusetts?
The Massachusetts Department of Revenue. It is separate from the IRS. A plan with one does not stop the other from collecting.
Can I get a payment plan for Massachusetts taxes?
Payment agreements are set up in MassTaxConnect.
Does Massachusetts take offers in compromise?
Yes. The offer must be at least $5,000, with 20% paid up front. Use Form M-656.
Can Massachusetts suspend a license for tax debt?
Professional licenses, driver's licenses and car registrations can be suspended.
Can TaxTruce help with Massachusetts tax debt?
Yes. TaxTruce is a free service that connects you with tax resolution firms that work in Massachusetts. Answer a few questions, confirm your phone with a text code, and a firm reviews your situation and calls you back. We are not the IRS or a state agency.
Results depend on your situation. Not every case qualifies.
Sources
Facts on this page come from Massachusetts Department of Revenue and are linked. Rules change. Check with Massachusetts Department of Revenue or a licensed tax pro before you act. We are not affiliated with Massachusetts Department of Revenue.