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Massachusetts

A guide to help you understand the ins and outs of business in Massachusetts

Overview

Massachusetts is the most populous state in New England with 7.17 million residents. Although Massachusetts is the seventh smallest state in the country by land area, Boston, the state's capital and largest city, is the most populated city in the region, helping make the state the 16th most populous in the US. Massachusetts' GDP reached $651,100,000,000.

The top industries in Massachusetts by overall economic contribution are professional, scientific, and technical services, real estate, rental, and leasing, and healthcare and social assistance, which actively fuel its dominance in biotechnology, finance, IT, and defense. Massachusetts remains home to world-class universities like MIT and Harvard, which anchor its leading academic research and development engine. The state's premier biotech and life sciences cluster commands over 117,000 jobs and accounts for more than 26% of all national biopharma venture capital, driving a drug development pipeline that represents roughly 13% of all scientific R&D roles in the country.

On a bilateral level, Massachusetts channels approximately $56.4 million in direct annual exports to Qatar. This commercial partnership is heavily driven by the state's knowledge-based economy, led by the shipment of advanced computer and electronic products, medical instruments, and specialized laboratory equipment to Qatar's expanding tech and healthcare sectors.

Massachusetts has a flat corporate net income tax rate of 8%, which operates alongside a tangible property or net worth calculation as part of the state's total corporate excise tax structure. Massachusetts manages its main custom-duty relief through the general-purpose foreign-trade zone (FTZ 27) located around Boston Harbor and Logan International Airport. The state administers an array of business growth packages, prominently featuring the Economic Development Incentive Program (EDIP) overseen by the Economic Assistance Coordinating Council to reward capital investments and job growth. This is supported by statutory tax credits for research and development and targeted workforce training incentives.

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