| Taxes |
New Hampshire |
Massachusetts |
| Top Corporate Income Tax % |
8.5% |
9.5%* |
| Apportionment Formula |
|
|
| Property Factor |
25% |
25% |
| Payroll Factor |
25% |
25% |
| Sales Factor |
50% |
50% |
| Throwback Rule |
Yes |
Yes |
| NOL Deductions |
|
|
| Caryback (Years) |
0 |
0 |
| Carryforward (Years) |
10 |
5.0 |
| LLCs Recognized |
Partial |
Yes |
| S-corps Recognized |
No |
Yes |
| Sales Tax & Use Tax % |
0% |
6.25 |
| Internet Sales Tax |
|
|
| Sales Exemptions |
|
|
| Manufacturing Machinery |
No Tax |
Exempt |
| Office Equipment |
No Tax |
Taxable |
| Custom Software |
No Tax |
Exempt |
| Modified Canned Software |
No Tax |
Exempt |
| Tangible Personal Property |
No Tax |
Taxable |
| Sales & Use - Weighted Average of County & City Rates |
0% |
N/A |
| Top Personal Income Tax % |
0%** |
5.3 |
| Professional Services Tax |
N |
N |
| Top Capital Gains Tax |
0% |
5.3 |
| Estate, inheritance/gift taxes beyond fed. Pick-up tax. |
N |
Y |
| Motor Fuel Tax, 07 |
0.196 |
0.235 |
| Property Tax |
|
|
| On Land & Buildings, as share of personal income |
|
5.34 |
3.63 |
| Telecommunications Tax % |
|
|
| State Tax Rate |
7.0 |
9.3 |
| Local Tax Rate |
N/A |
N/A |
| Workers Compensation as % of Covered Wages |
0.82 |
0.57 |
| Unemployment Insurance Tax % (New Employers), 07 |
1.70*** |
2.53 |
| Unemployment Insurance Time Period to Qualify for Experience Rating |
1 |
1 |
| Unemployment Insurance Tax Wage Bases, 07 |
$8,000 |
$14,000 |
| Unemployment Insurance Tax/ Per Employee, 07 |
$136 |
$354 |
| Internet Access Tax |
Y |
N |
| Gasoline Excise Tax (cents per gallon) |
19.6¢ |
23.5¢ |
| Diesel Excise Tax (cents per gallon) |
19.6¢ |
23.5¢ |
| Rooms & Meals Tax |
9% |
5.7 & 6.25% |
| Tobacco Excises Tax (cents per pack of 20) |
178.0 |
251.0 |
| State Taxes as Percentage of Personal Income |
7.3% |
10.3% |
| |
|
|
| INSURANCE TAXES |
|
|
| Premium Tax Rates --generally * Phased in over 4 years starting in 2006 |
1.75% |
2.28% |
| Accident/Health |
2% |
2% |
| Life |
1.75% |
2% |
| Annuity |
N/A |
N/A |
| Property/Causality |
1.75% |
2.28% |
| Fire |
1.75% |
2.28% + additional, .25% on gross premiums |
| Risk/ Retention |
1.75% |
2.28% |
| BlueCross/BlueShield |
2% |
Excise tax: 1% of subscription dues |
| Prepaid Lines |
N/A |
N/A |
| Title Insurance |
1.75% |
N/A |
| Independent Procurement |
4%
Industrial Procurement 3%
Marine: 2% |
N/A |
| HMO's |
2% |
N/A |
| Surplus Lines |
2% |
4% |
| Marine Insurance |
5% of underwriting profit |
5.7% net profit |
| # of Domestic Insurers |
42 |
91 |
| # of Licensed Foreign Insurers |
972 |
1,164 |
| # of Chartered Purchasing Groups |
5 |
11 |
| |
|
|
| HIGH-TECH ECONOMY |
|
|
| Overall State Rank High-Tech Worker per 1,000, 03 |
67.39 |
86.02 |
| # of High-Tech Establishments, 03 |
2,572 |
11,832 |
| High-Tech Wages, 03 |
$69,144 |
$81,022 |
| Unemployment Rate by Cyberstate, 04 |
3.8% |
5.1% |
| Total High-Tech Manufacturing, by Employment, 03 |
19,372 |
80,227 |
| Total High-Tech Services, by Employment, 03 |
15,709 |
155,357 |
| High Tech Export, 04 |
$1,071,438 |
$9,186,364 |
| High Tech Exports, % Change 03-04 |
18.3% |
6.3% |
| Venture Capital Investment in High-Tech, 04 |
$146.0 |
$2,774.9 |
| Total R+D per Captia in High-Tech, 02 |
$1,126 |
$2,229 |
| R&D Inputs - U.S. Ranking |
5 |
1 |
| Risk Capital and Infrastructure-U.S. Ranking |
18 |
2 |
| Human Capital Investment-U.S. Ranking |
12 |
2 |
| Technology Concentration-U.S. Ranking |
10 |
11 |
| Internet Average Speed (Kpbs) |
615 |
695 |
| Surfspeed Rank |
17 |
9 |
| Broadband Penetration |
65.1% |
67.1% |
| Number of New Patents (2006) |
657 |
4,368 |
| Technology & Science Index, 04 (1=Best 50=Worst) |
12 |
1 |
| |
|
|
| NEW ECONOMY INDEX 07 |
|
|
| Over all US Ranking |
13 |
1 |
| Ranking by Category |
|
|
| Immigration of Knowledge Workers |
3 |
9 |
| High Wage Traded Services |
13 |
9 |
| Foreign Direct Investment |
5 |
6 |
| Fastest Growing Firms |
20 |
1 |
| Inventor Patents |
9 |
4 |
| Online Population |
4 |
23 |
| High-Tech Jobs |
8 |
1 |
| Venture Capital |
7 |
2 |
| |
|
|
| FINANCIAL & GOVERNMENT COMPARISONS |
|
|
| Tax burden - State/Local, % of Income 2008 |
7.6% |
9.5% |
| State Government Tax Revenue, 2007 |
$2,080,573,000 |
$19,395,270,000 |
| Per Capita State Government Tax Revenue, 2007 |
$1,655 |
$3,195 |
| State Government Debt Outstanding, 2006 |
$7,433,238,000 |
$65,310,233,000 |
| Per Capita State Government Debt Outstanding, 2006 |
$5,679 |
$10,136 |
| Gross Domestic Product by State, 2007 |
$57,341,000,000 |
$351,514,000,000 |
| State Government Bond Rating (S&P, 2006) |
AA |
AA |
| Cost of Living Index , Selected Metro, Second Quarter, 2009 |
116.5% |
129.5% |
| Number of Bureaucrats 2008 |
5.45 |
5.16 |
| Legal Liability- Best States to Incorporate (1=Best; 50=worst) , 2008 |
16 |
18 |
| % of State + Local Spending, as Measured by the GDP, 92-00 inflation over same period was 16.4% |
22.40 |
36.90 |
| Tax Climate Index (U.S. Tax foundation), 2009 Overall Ranking |
8 |
32 |
| |
|
|
| ENERGY & ENVIRONMENT |
|
|
| Electricity, October 2008 (Cents Per Kil Hr.) |
13.80 |
14.66 |
| Electricity Generated Through Renewable Sources in 2006 |
2,275,311,000 |
2,791,473,000 |
| Natural Gas, November 2007 (Dollars Per Thousand Cubit Feet) |
N/A |
9.2 |
| Coal, Av. Price Delivered, $ Per Short Ton |
N/A |
N/A |
| Energy Consumption, 2006 (Trillions BTU) |
313.1 |
1,479.1 |
| Total Pollution Released in 2006 |
4,173,403 |
6,969,912 |
| Total Air Emissions in 2005 |
3,952,963 |
4,352,770 |
| |
|
|
| LABOR |
|
|
| Right to Work State |
N |
N |
| Average Annual Pay, 2007 |
$43,863 |
$55,244 |
| Average Hourly Earnings For Production Workers, 2008 |
$17.46 |
$20.39 |
| Percent Change in Average Annual Pay: 2006 to 2007 |
3.3 |
5.4 |
| Civilian Labor Force in 2008 |
739,500 |
3,418,100 |
| Workers' Compensation Benefit Payments, 2006 |
$213,719,000 |
$934,660,000 |
| % of Nonfarm Employees in Manufacturing, 20087 |
11.5 |
8.8 |
| % of Nonfarm Employees in Government, 2008 |
15.0 |
13.5 |
| 2007, Occupational Injuries-Nonfatal |
11.0 |
74.0 |
| |
|
|
| CFED STATE ECONOMY REPORT CARD, 2007 |
|
|
| Equity |
A |
C |
| Earnings & Job Quality |
A |
A |
| Employment |
B |
D |
| Quaility of Life |
A |
B |
| Resource Efficiency |
A |
A |
| Competitiveness |
C |
A |
| Entrepreneurial |
C |
A |
| Human Resources |
A |
A |
| Financial Resources |
A |
A |
| Infrastructure |
D |
C |
| Innovation Assets |
A |
A |
| Amenity Resources |
C |
F |
| |
|
|
| EDUCATION |
|
|
| Critical Reading SAT Score, 2007 |
521 |
513 |
| Math SAT Score, 2007 |
521 |
522 |
| Writing SAT Score, 2007 |
512 |
511 |
| % of Students Taking SAT Exam, 2006-2007 |
83.0 |
85.0 |
| Reading NAEP Score, 2007, Grade 4 |
229 |
236 |
| Reading NAEP Score, 2007, Grade 8 |
270 |
273 |
| Math NAEP Score, 2007, Grade 4 |
249 |
252 |
| Math NAEP Score, 2007, Grade 8 |
288 |
298 |
| Projected High School Graduates 07-08 |
14,320 |
48,023 |
| Projected High School Student who receive no diploma, 07-08 |
4,244 |
16,298 |
| Public Elementary/Secondary Expenditures per pupil, 2008 |
$12,097 |
$14,723 |
| % of Population Graduated from High School in 2007 |
90.5 |
88.4 |
| % of Population With a Bachelor's Degree or More, 2007 |
32.5 |
37.9 |
| Pupil-Teacher Ratio in Public Elementary and Secondary Schools in 2009 |
12.6 |
12.7 |
| Average Salary of Public School Classroom Teachers in 2009 |
$48,934 |
$62,769 |
| Books in Public Libraries Per Capita, 2005 |
4.6 |
5.0 |
| College Degree - Granting Institutions, 2005 |
26 |
121 |
| Number of Charters Schools, 07 |
83 |
59 |
| |
|
|
| DEMOGRAPHICS |
|
|
| Domestic in - Migration in to the state: 2007 to 2008 |
(2,473) |
(18,675) |
| Median Age 2007 |
39.8 |
38.5 |
| % Change in Population 25 to 44 Years Old, 2007 |
26.8 |
27.9 |
| % Change in Population 2007 to 2008 |
0.3 |
0.5 |
| Poverty Rate, 2007 |
5.6 |
11.1 |
| % Public Aid Recipients 2006 |
2.0 |
4.1 |
| % Births to Unmarried Women in 2006 |
29.4 |
32.2 |
| |
|
|
| CRIME |
|
|
| Murders in 2007 |
15 |
184 |
| Violent Crimes/100,000 Population, 2007 |
137.3 |
431.5 |
| Property Crimes, 2007 |
1,892 |
2,391.5 |
| Motor Vehicle Thefts, 2007 |
1,299 |
14,992 |
| Aggravated Assault Rate per 100,000 in 2007 |
78 |
294.7 |
| |
|
|
| HEALTH |
|
|
| Healthiest States (1=best; 50=worst), 2008 |
3 |
6 |
| Health Mandates |
1.95 |
2.15 |
| Infant Mortality /1000 Live Births, 2005 |
5.3 |
5.2 |
| % of Persons Not Covered by Health Insurance, 2007 of U.S. |
10.5 |
8.3 |
| Physicians, 2007 |
4,232 |
33,313 |
| Deaths by Accident, 2005 |
477 |
1,907 |
| Estimated Rate of New Cancer Cases, 2008 |
534 |
531 |
| Bioterrorism Preparedness Score, 06 - (1=worst 10=best) |
10 |
6 |
| Potential # of illness during a severe Pandemic |
389,000 |
1,895,000 |
| Potential # of deaths during a severe Pandemic |
10,000 |
55,000 |
| % of Adults with Asthma - 2007 |
14.5 |
14.2 |
| %of Adults with Diabetes - 2007 |
7.0 |
6.7 |
| % of Adults with Obesity - 2007 |
61.8 |
58.9 |
| % of Children Overweight - 2007 |
11.7 |
11.1 |
| % of Adults with Hypertension - 2007 |
24.9 |
25.8 |
| Cumulative Number AIDS Cases (13 & Older) - 2006 |
1,074 |
19,181 |
| Human West Nile Cases - 2008 |
0 |
0 |
| |
|
|
| COST OF LIVING, (LARGEST METRO AREA IN EACH STATE 2TH Quarter 2009) |
| Average Apartment Rent |
$1,090 |
$1,350 |
| Average Home Price |
$326,000 |
$419,000 |
| Average Total Energy Cost |
$234.05 |
$311.52 |
| Average Phone Bill |
$36.65 |
$38.45 |
| Gasoline/Gallon |
$1.72 |
$1.67 |
| Doctor Visit |
$149.00 |
$149.00 |
| Average Auto Insurance Premium, 2004 |
$856.45 |
$1,204.76 |
| Food |
|
|
| Ground Beef |
$3.52 |
$3.91 |
| Tuna, 6 oz cans |
$1.18 |
$1.28 |
| Whole Milk , Half Gallon Cartons |
$2.13 |
$2.56 |
| Dozen Eggs |
$2.03 |
$2.23 |
| Bread |
$1.56 |
$1.44 |
| |
|
|
| QUALITY OF LIFE: CHILD WELL - BEING |
| Overall State Ranking, 07 |
1 |
3 |
| Births of Low Birthweight as a percent of all Births in 2006 |
6.9 |
7.9 |
| Child Death Rates (deaths per 100,000 ) |
16.0 |
12.0 |
| Teen Deaths Rate by Accident, Homicide, and Suicide (deaths per 100,000) |
39 |
29 |
| Teen Birth Rate (births per 1,000 females ages 15-19) |
18.5 |
23.2 |
| % of Teens Who Are High School Dropouts, 2007 |
4 |
5 |
| % of Teens Not Attending School and Not Working , 2007 |
5 |
6 |
| % of Children Living With Parents Who Do Not Have Full-Time, Year- |
|
|
| Round Employment, 2007 |
27 |
32 |
| % of Children in Poverty (date reflect poverty in pervious year), 2007 |
9 |
13 |
| % of Families with Children Headed by Single Parent, 2007 |
25 |
29 |
| |
|
|
| SOCIAL CAPITAL |
|
|
| LifeStyles: Times Volunteered Last Year |
8.0 |
6.7 |
| Belief: "Most People are Honest" (6-level agree/disagree) |
4.08 |
3.90 |
| Attended Meetings on Town or School Affairs (percent) |
33% |
24% |
| Belief: "Most People Can be Trusted" |
62% |
46% |
| Civic and Social Organizations per 1000 pop, 1977-1992 (from FICA) |
0.25 |
0.18 |
| Mean President Turnout 1988 & 1992 |
59% |
59% |
| Av. Charitable Giving per IRS Tax Filers, 02 |
$759 |
$1,219 |
| Social Capital State Ranking, 2000 |
8 |
18 |
| |
|
|
| GEOGRAPHY |
|
|
| Total Area of States in Square Miles in 2008 |
9,350 |
10,555 |
| Highest Point of Elevation in Feet |
6,288 |
3,491 |
| % of Days That are Sunny |
43.5 |
55.0 |
| Hazardous Weather Fatalities in 2007 |
0 |
1 |
| # of Deaths & Injuries by Lighting Strikes, from 1959 - 1994 |
76 |
355 |
| # of Earthquakes by State from 1974-2003 |
6 |
2 |
| # of Tornadoes, in 2008 |
12 |
0 |
| |
|
|
| HOUSING |
|
|
| New Housing Units Authorized in 2008 |
3,250 |
9,241 |
| % Homeownership Rate, 2007 |
73.8 |
64.3 |
| % Change in House Prices: 2007 to 2008 |
(3.9) |
(4.8) |
| % Change in Existing Home Sales: 2007 to 2008 |
N/A |
(8.9) |
| |
|
|
| POPULATION |
|
|
| Population in 2008 |
1,315,809 |
6,497,967 |
| Population 18 to 24 Year Old in 2007 |
119,035 |
641,055 |
| Population 25 to 44 Years Old in 2007 |
352,678 |
1,798,128 |
| Average Family Size in 2007 |
3.02 |
3.17 |
| % of Eligible Voters Reported Registered, 2006 |
69.7% |
72.4% |
| # of State Legislators, 2009 |
424 |
200 |
| |
|
|
| TRIVIA FACTS |
|
|
| State Nickname |
Granite State |
Bay State |
| State Capital |
Concord |
Boston |
| State Song |
Old New Hampshire |
All Hail to Massachusetts |
| State Flower |
Purple Lilac |
Mayflower |
| State Tree |
White Birch |
American Elm |
| State Bird |
Purple Finch |
Chickadee |
| State Mottos |
Live Free or Die |
By the sword
we seek pease only under liberty |
| |
|
|
| Last Update |
6/30/2009 |
630/2009 |
| |
|
|
| * This footnote is from Gray and Gray CPA firm in Boston which summarizes the changes in MA tax business tax rate: |
| |
| 2008 & 2009 |
9.50% |
|
| 2010 |
8.75% |
|
| 2011 |
8.25% |
|
| 2012 |
8.0% |
|
The "sting tax" on S corporation rates will be reduced in schedule consistent with the corporate tax reductions: |
| Gross receipts of $6M or more but |
3.0% |
1.8% |
| Gross receipts of $9M or more |
4.5% |
2.7% |
|
Massachusetts will conform to the "type of entity" used for federal income tax reporting. One effect of this change will be to make more entitles subject to the Massachusetts "sting tax". Use of the "Massachusetts Business Trust" will generally not be permitted.
· Effective for tax year beginning on or after January 1, 2009 Massachusetts now requires businesses to use "combined tax reporting" *CTR). Businesses will no longer be able to shift income to affiliated entities taxed in lower tax rate states because, under CTR, the affiliated entities will be required to file combined returns.
· Starting with tax years beginning on or after January 1, 2009 Massachusetts now requires qualified S corporations subsidiaries (QSUB) as disregarded entities. As such they will not be subject to entity level tax but rather have their revenues and dedications included with their parent's return.
The Massachusetts Department of Revenue (DOR) ruled that self-employed individuals (partners and sole-proprietors) will be taxed currently on contributions to 401(k) plans. Information source: Gray, Gray & Gray, LLP at www.gggcpas.com
** Distribution from LLCs, Partnerships, and Association are subject to New Hampshire's interest and dividents tax which is 5%.
*** New Hampshire's unemployment tax % will be increasing to 2.7 plus a 1.5% surcharge to cover a deficit in the state trust fund |
| |
