Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
You made a point in a thread on the budgetting forum that MA taxes out of state interest (ING, Emigrant, etc) at 12%.

Now, even with this I am *much* better off at one of those than at my local bank, but I was concerned, so I did some research and it appears that that law is no longer true. I responded as such on the tread to get your opinion but there was never a response. I noticed you were here, as are many knowledgeable people, so I thought I'd repost and see if we could get to the bottom of this.

[links and references to MA tax rules snipped]

Now I will note that there's a $100 exception for in-state interest which does not exist for out of state, but at these apparent rates that's only $5.30, which is muc less than the difference I gain by moving it to Emigrant.

So, is out of state interest now only taxed at 5.3% also, or am I confused?

You are not confused. MA currently taxes all interest at 5.3% (but allows the first $100 of MA-source interest tax free). Some other income is still taxed at 12%.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.