Calculate your take-home pay in Massachusetts with accurate state income tax (5-9%), federal withholding, and FICA deductions.
5-9%
State Income Tax
$15.00
Minimum Wage
7.0M
Population
💰 Free Payroll Calculator — 2026 Tax Year
Calculate your take-home pay with federal & state taxes
🏛️ Massachusetts Payroll Tax Overview for 2026
Massachusetts levies a state income tax with rates ranging from 5-9%. When calculating payroll in Massachusetts, employers must withhold both federal and state income taxes, along with FICA contributions (Social Security at 6.2% and Medicare at 1.45%).
Massachusetts Income Tax Brackets (2026)
Income Range
Tax Rate
$0.00 — and above
5%
$1,000,000.00 — and above
9%
Additional Massachusetts Payroll Information
Minimum Wage (2026): $15.00 per hour
State Unemployment Insurance (SUI): 0.56-8.62% (employer-paid)
See how much you'd take home at different salary levels in Massachusetts (single filer, 2026 tax year):
Annual Salary
Federal Tax
State Tax
FICA
Take-Home
Eff. Rate
$50,000.00
$3,877.50
$2,500.00
$3,825.00
$39,797.50
20.41%
$75,000.00
$7,960.00
$3,750.00
$5,737.50
$57,552.50
23.26%
$100,000.00
$13,460.00
$5,000.00
$7,650.00
$73,890.00
26.11%
🏢 Employer Payroll Tax Cost in Massachusetts
Employers in Massachusetts must pay additional payroll taxes on top of each employee's salary. Here's the employer cost breakdown for a $75,000 salary:
Employer SS (6.2%)
$4,650.00
Employer Medicare (1.45%)
$1,087.50
FUTA (0.6%)
$42.00
Total Employer Cost
$80,779.50
+7.71% above salary
❓ Massachusetts Payroll FAQ
To calculate payroll taxes in Massachusetts, apply the state income tax rate of 5-9% to your taxable income, then add federal income tax (10-37% based on brackets), Social Security (6.2% up to $184,500), and Medicare (1.45%). Use our calculator above for instant, accurate results.
The minimum wage in Massachusetts for 2026 is $15.00 per hour. This is above the federal minimum wage of $7.25/hour. At this rate, a full-time employee (40 hours/week) earns approximately $31,200/year before taxes.
Yes. Massachusetts has a state income tax with rates of 5-9%. This is in addition to federal income tax and FICA taxes.
Disclaimer: This Massachusetts payroll calculator provides estimates for informational purposes only. Actual tax withholdings may vary based on local taxes, additional deductions, and individual circumstances. Massachusetts tax rates are based on 2026 figures from the IRS and Massachusetts Department of Revenue. Consult a qualified tax professional for accurate payroll advice.
Disclaimer: NOT tax advice. Mustafa Bilgic is not a CPA, EA, or tax preparer. Consult a qualified tax professional before relying on these estimates.
Massachusetts Payroll Tax Reference: Statutory Citations and 2026 Specifics
Massachusetts Tax Law Citations (2026)
Massachusetts personal income tax derives from Massachusetts General Laws (M.G.L.) Chapter 62 — "Taxation of Incomes." Withholding requirements stem from M.G.L. c. 62B ("Withholding of Taxes on Wages and Declaration of Estimated Income Tax"), and the 4% surtax on income above $1 million is codified at M.G.L. c. 62, § 5A, added by Article 44 of the Massachusetts Constitution (the "Fair Share Amendment," approved by voters November 2022). The Massachusetts Department of Revenue ("DOR") administers withholding, publishing Form M-4 (Massachusetts Employee's Withholding Exemption Certificate) and the annual Circular M (withholding tables). Official portal: mass.gov/dor; surtax explainer at mass.gov/info-details/massachusetts-4-surtax-on-taxable-income.
2026 income tax brackets. Massachusetts retains a single flat 5.0% rate on most income (Part B income — wages, salary, self-employment), plus a 4% surtax on Massachusetts taxable income above $1,083,150 for tax year 2025 (filed in 2026); the threshold is indexed annually under M.G.L. c. 62, § 5A(b). Combined effective top rate is therefore 9.0%. Short-term capital gains are taxed at 8.5% (Part A income, M.G.L. c. 62, § 4(a)). Interest and dividends from non-Massachusetts sources also fall under the 5% Part B rate.
Recent legislation (2024–2026). The Massachusetts FY2025 Tax Reform Act (Chapter 50 of the Acts of 2023) phased in a series of credit expansions including the Senior Circuit Breaker, Child and Family Tax Credit ($440 per dependent for tax year 2026), and Earned Income Tax Credit (40% of federal). The Acts of 2024 introduced an estate tax threshold lift to $2 million and indexed the Massachusetts state Earned Income Credit, but no rate changes occurred. Employers must continue using DOR Circular M (2026 edition) for withholding.
Massachusetts 2026 Payroll-Specific Numbers
State Unemployment Insurance (SUI): Administered by the Massachusetts Department of Unemployment Assistance under M.G.L. c. 151A. For calendar year 2026, experience-rated employer rates range 0.83% to 12.65% on the first $15,000 of wages per employee (Massachusetts UI taxable wage base unchanged for 2026). New employers pay 1.45% (non-construction) or 5.45% (construction). The annual Employer Medical Assistance Contribution (EMAC) of 0.34% applies to employers with six or more employees.
Paid Family and Medical Leave (PFML): Massachusetts PFML, codified at M.G.L. c. 175M, is funded by a payroll contribution. For 2026, the total contribution rate is 0.88% of eligible wages (up to the federal SSA wage base of $176,100). Of this, employees pay 0.18% for medical leave plus 0.18% for family leave; employers with 25+ employees pay the remaining 0.52%. Massachusetts is one of only thirteen states with a mandatory PFML payroll deduction.
Workers' Compensation: Mandatory under M.G.L. c. 152; rates set by the Workers' Compensation Rating and Inspection Bureau (WCRIBMA). 2026 voluntary loss-cost levels approximate $0.49 per $100 of payroll for clerical (Class 8810); construction class codes range $4–$15.
State-Specific Deductions: Massachusetts allows the Commuter Deduction (M.G.L. c. 62, § 3(B)(a)(15)) up to $750 for tolls and transit passes, the Rental Deduction (50% of rent paid up to $4,000), and a Student Loan Interest Deduction (uncapped, unlike federal). These reduce Massachusetts AGI but do not affect paycheck withholding.
Massachusetts BLS Wage Data (May 2024 OEWS)
Massachusetts ranks among the highest-wage states in the United States. Per the BLS OEWS program, the Massachusetts statewide median annual wage was approximately $63,720 in May 2024 — significantly above the U.S. median of $49,500 and roughly the second-highest state median (after the District of Columbia). The Boston-Cambridge-Newton MSA pulls the state average upward with median wages near $68,400. Source: bls.gov/oes/current/oes_ma.htm. Top occupations by employment include registered nurses (~$108,500), software developers (~$143,300), and general/operations managers (~$132,800), reflecting the Massachusetts economy's heavy concentration in life sciences, healthcare, and technology.
Practitioner Insight: What Sets Massachusetts Apart
What sets Massachusetts apart for payroll calculations is the 4% surtax on income over $1,083,150 (2025 threshold, filed in 2026). Unlike most states' graduated brackets that add ~1–2% per band, the Massachusetts surtax is a single 4-point cliff at the millionaire threshold — meaning W-2 earners with executive compensation, RSU vesting events, or one-time bonus payments can suddenly face a 9% effective state rate on the marginal portion. DOR Form M-4 does not automatically capture the surtax; high earners typically must file Form M-2210 (estimated payment) or adjust withholding mid-year via a higher M-4 election. Employers running payroll for executives should also note that the surtax applies to realized short-term capital gains and pass-through entity income reported on the personal return — not just W-2 wages — so withholding alone rarely covers a high earner's full liability. The 8.5% short-term capital gains rate is also a sleeper consideration for stock-based compensation that vests within 12 months of grant.
Editor's Note
Last reviewed by Mustafa Bilgic on 2026-05-05. Massachusetts state tax law verified against the Massachusetts Department of Revenue (mass.gov/dor), DOR's 4% surtax guidance (mass.gov/info-details/massachusetts-4-surtax-on-taxable-income), the Massachusetts PFML Department of Family and Medical Leave (mass.gov/orgs/department-of-family-and-medical-leave), and IRS Publication 15-T (2026). Mustafa Bilgic is the sole proprietor of PayrollCalculator.us, registered at Malazgirt No: 225, 02000 Adıyaman, Türkiye.
Sources: IRS Publication 15 (Circular E), state Departments of Revenue, Bureau of Labor Statistics (BLS) wage data, and Social Security Administration current FICA rates.
NOT TAX ADVICE: This is an estimate tool. Consult a qualified CPA, EA, or tax professional for your specific situation. We are not a tax preparer or financial advisor.