Massachusetts Corporate Excise Tax: Complete Guide
Massachusetts's Corporate Excise Tax applies to every corporation doing business in MA at 8% of net income plus a property/net-worth measure, with a $456 minimum excise tax owed regardless of activity. The Department of Revenue (DOR) actively files tax liens and pursues responsible officers personally.
Massachusetts Corporate Excise Tax applies to every corporation doing business in or organized under MA law. The tax is 8% of net income PLUS $2.60 per $1,000 of taxable Massachusetts tangible property (or net worth, depending on classification). The minimum excise tax is $456 — owed every year by every corporation, regardless of activity. Returns are due 3.5 months after year-end (April 15 for calendar-year filers).
Who Owes It
- Every MA-organized corporation
- Every foreign corporation doing business in or owning property in MA
- S-corporations (separate Form 355S, 0% on income flowed through to MA-resident shareholders + property/net-worth measure)
- LLCs taxed as corporations for federal purposes
Filing Details
- Due date
- 3.5 months after fiscal year-end (April 15 for calendar-year filers).
- Minimum tax
- $456 minimum excise tax — owed every year regardless of income.
- Maximum / rate
- 8% on net income + $2.60 per $1,000 of MA tangible property or net worth.
- How to file
- MA Department of Revenue MassTaxConnect at mass.gov/dor.
- Payee
- Massachusetts Department of Revenue (DOR)
Most Common Problems
The patterns we see most often when clients come to us with Massachusetts Corporate Excise Tax problems.
1. MA DOR filed a tax lien
Unpaid corporate excise tax leads to MA DOR recording a Notice of Massachusetts Tax Lien with the Registry of Deeds — creating a lien on all MA real and personal property.
2. Officers personally assessed for trust fund taxes
Although the corporate excise tax itself is a corporate liability, MA DOR often pursues officers personally for related trust fund taxes (sales tax, withholding tax) under M.G.L. c. 62C, § 31A — and those cases frequently bundle together.
3. You owe $456/year on a corporation you never operated
MA's $456 minimum is owed annually regardless of activity. A dormant MA corporation accumulates $456/year forever until formally dissolved with the Secretary of the Commonwealth.
How to Fix It: Step-by-Step Resolution
The same playbook our attorneys use when a new client walks in with Massachusetts Corporate Excise Tax delinquency.
- 1
Pull the MA DOR account transcript
Request a complete Corporate Excise account transcript covering every year of delinquency.
- 2
File every missing Form 355 / 355S return
File Form 355 (C-corp) or 355S (S-corp) for every delinquent year via MassTaxConnect.
- 3
Negotiate a Payment Agreement with MA DOR
MA DOR offers installment payment agreements for corporate excise tax debt. We negotiate plans fitting the entity's actual cash flow.
- 4
Release the MA tax lien
Once the balance is satisfied or under an active payment plan, file Form M-3927 (Tax Lien Release Request) with MA DOR.
Penalties & Consequences
Late-file penalty: 1% per month, max 25%. Late-pay penalty: 1% per month, max 25%. Interest: federal short-term rate + 4%. Notice of Massachusetts Tax Lien filed at Registry of Deeds.
Why a Tax Attorney (Not Just Your Registered Agent)
Massachusetts corporate excise tax cases regularly bundle with MA sales tax and MA withholding tax — and the trust-fund pieces carry personal officer liability under M.G.L. c. 62C, § 31A. A tax attorney can resolve all three layers in coordination and protect officers from personal collection.
Frequently Asked Questions
What is the minimum Massachusetts corporate excise tax?+
The minimum corporate excise tax is $456 per year, owed by every MA corporation regardless of income, activity, or operations.
How is MA corporate excise tax calculated?+
It's two-part: 8% on net income PLUS $2.60 per $1,000 of MA-allocated tangible property (or net worth for non-tangible-property corporations). A corporation pays the SUM of the two measures, with a $456 minimum.
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Tax Attorney | Civil and Criminal Tax Controversy & Litigation Specialist
Gregory McCauley Jr. is an experienced tax attorney who has personally represented more than 1,000 clients in matters ranging from civil tax controversy and IRS examinations to criminal tax defense, U.S. Tax Court litigation, and complex business disputes. His practice is built on a foundation his clients describe as rare in the tax resolution industry: genuine attention to detail, direct attorney access, and a willingness to litigate when the IRS refuses to be reasonable.
Don’t Overpay Massachusetts. Don’t Wait for Forfeiture.
Our tax attorneys resolve Massachusetts Corporate Excise Tax delinquency, federal corporate tax exposure, and officer personal liability in one coordinated strategy.
Call (877) 829-5267