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How much is Massachusetts state income tax?

State & Local Taxesbeginner3 answers · 6 min readUpdated February 28, 2026

Quick Answer

Massachusetts charges a flat 5% state income tax on most income. For example, someone earning $75,000 pays exactly $3,750 annually in MA state tax, or about $144 per biweekly paycheck, regardless of filing status.

Best Answer

SC

Sarah Chen, Payroll Tax Analyst

Standard employees with Massachusetts withholding on their paychecks

Top Answer

How much Massachusetts tax will you pay?


Massachusetts uses a flat tax rate of 5% on most income, making it one of the easiest state taxes to calculate. Unlike states with progressive brackets, nearly everyone pays the same 5% rate regardless of income level or filing status.


The simple math


For most employees, the calculation is straightforward:

Annual MA tax = (Taxable income) × 5%


This applies to wages, salaries, bonuses, and most other income types. The only major exception is the 4% surtax on income over $1 million (so ultra-high earners pay 9% on income above $1M).


Real-world examples by salary level



How withholding appears on your paycheck


Your Massachusetts withholding depends on:

  • Your gross pay per pay period
  • Number of allowances on Form M-4 (MA withholding form)
  • Any additional withholding you've requested
  • Whether you're subject to the flat rate or have other MA income

  • According to the Massachusetts Department of Revenue withholding tables, employers calculate this by taking your gross pay, subtracting pre-tax deductions (401k, health insurance, etc.), then applying the 5% rate to the remaining amount.


    Example: $75,000 salary detailed breakdown


    Let's walk through a typical biweekly paycheck:

  • Gross biweekly pay: $2,884.62
  • Pre-tax deductions (401k, health): -$400
  • Taxable income: $2,484.62
  • MA state withholding: $2,484.62 × 5% = $124.23

  • This matches our annual calculation: $75,000 × 5% = $3,750 ÷ 26 pay periods = $144 (small difference due to rounding).


    Special situations to know about


  • Interest and dividends: Also taxed at 5% in Massachusetts
  • Short-term capital gains: Taxed at 5% like regular income
  • Long-term capital gains: Taxed at 5% (unlike federal preferential rates)
  • Unemployment benefits: Subject to MA tax at 5%
  • Retirement distributions: Generally taxed at 5%, but some pensions may be partially exempt

  • Massachusetts vs. other states


    The 5% flat rate makes Massachusetts relatively straightforward compared to progressive systems. For middle-income earners, it's often more expensive than states like New Hampshire (no income tax) but less than high-tax states like California or New York for equivalent income levels.


    What you should do


    Check your paystub to verify your MA withholding matches 5% of your taxable income. If you consistently get large refunds or owe money, adjust your M-4 form with HR. The flat rate system means there's less complexity in getting withholding right compared to progressive tax states.


    Key takeaway: Massachusetts' 5% flat tax is simple to calculate - just multiply your taxable income by 5%. A $75,000 earner pays exactly $3,750 annually, or about $144 per biweekly paycheck.

    *Sources: Massachusetts Department of Revenue TIR 21-15, Massachusetts General Laws Chapter 62*

    Key Takeaway: Massachusetts' 5% flat tax means you pay exactly 5% of taxable income - a $75,000 earner pays $3,750 annually, or $144 per biweekly paycheck.

    Massachusetts flat tax calculations by income level in 2026

    Annual IncomeMA State Tax (5%)Monthly TaxBiweekly Withholding
    $40,000$2,000$167$77
    $60,000$3,000$250$115
    $80,000$4,000$333$154
    $100,000$5,000$417$192
    $120,000$6,000$500$231

    More Perspectives

    SC

    Sarah Chen, Payroll Tax Analyst

    New MA residents adjusting to the state's tax system

    Moving to Massachusetts: What to expect


    If you recently moved to Massachusetts, you'll find the state tax system much simpler than most other states due to the flat 5% rate. However, there are still important transition considerations.


    Your first year as a MA resident


    Massachusetts taxes all income earned while you're a resident. For a mid-year move, you'll typically file:

  • A part-year resident return in MA (Form 1-NR/PY)
  • A final return in your previous state
  • Potentially claim credits to avoid double taxation on the same income

  • Comparing to your previous state


    The 5% flat rate might be higher or lower than what you're used to:

  • From no-tax states (NH, TN, TX, FL, etc.): This will be a new 5% obligation
  • From high-tax states (CA, NY, NJ): You might actually pay less
  • From progressive states: Your effective rate comparison depends on your income level

  • Setting up withholding correctly


    Update your withholding immediately by filing Form M-4 with your employer. The good news: since it's a flat 5%, there's no complex bracket calculation to worry about. Your employer will simply withhold 5% of your taxable income each pay period.


    Example: Moving from Florida mid-year


    If you earned $50,000 in Florida (January-June) and $50,000 in Massachusetts (July-December):

  • Florida income: $0 state tax
  • Massachusetts income: $50,000 × 5% = $2,500 MA tax
  • Total state tax burden: $2,500 (much simpler than progressive states)

  • Key takeaway: Massachusetts' flat 5% rate makes the transition simpler than moving to progressive tax states - just expect 5% of your MA income to go to state taxes.

    Key Takeaway: Massachusetts' flat 5% rate makes moving transitions simpler - just expect exactly 5% of your MA income to go to state taxes.

    SC

    Sarah Chen, Payroll Tax Analyst

    People living in MA but working remotely for out-of-state companies

    MA tax for remote workers


    Living in Massachusetts while working remotely creates tax obligations that benefit from the state's simple 5% flat rate system.


    The residence rule


    Massachusetts taxes all income of residents at 5%, regardless of where you work or where your employer is located. This applies even if you work 100% remotely for a company in another state.


    Withholding challenges


    Your out-of-state employer might not withhold Massachusetts tax, creating potential issues:

  • You may need to make quarterly estimated payments
  • Risk owing a lump sum at tax time
  • Possible double taxation if employer withholds for their state

  • The flat rate advantage


    Massachusetts' 5% flat rate actually simplifies multi-state situations:

  • Easy to calculate quarterly payments: (Income ÷ 4) × 5%
  • Simple to determine if employer withholding is adequate
  • Straightforward credit calculations when dealing with other states

  • Example: Working for a NYC company


    If you earn $90,000 working remotely for a New York company:

  • Company might withhold ~$5,500 for NY state tax
  • You owe MA exactly: $90,000 × 5% = $4,500
  • You can claim credit for NY taxes paid
  • Likely result: Small refund from NY, manageable net MA obligation

  • Managing the situation


    1. Request MA withholding from your employer if possible

    2. Make quarterly payments of (quarterly income × 5%) if they can't

    3. Track reciprocity agreements - MA has limited agreements that might help

    4. Use the flat rate to easily calculate what you'll owe


    Key takeaway: MA's 5% flat rate makes remote work tax planning easier - simply ensure 5% of your income goes to MA through withholding or estimated payments.

    Key Takeaway: MA's 5% flat rate simplifies remote work taxes - just ensure 5% of income goes to MA through withholding or quarterly payments.

    Sources

    massachusettsstate taxflat taxwithholding

    Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026

    This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.

    How Much is Massachusetts State Income Tax? | ExplainMyPaycheck