Massachusetts taxes most income at a flat 5.00% rate. A 4% Millionaire Surtax (enacted by 2022 ballot measure) applies to taxable income exceeding $1,107,750 for TY2026 (CPI-indexed annually), bringing the effective rate on income above that threshold to 9.00%. Massachusetts does not use a standard deduction: instead, personal exemptions apply ($4,400 single, $8,800 MFJ, $6,800 HoH).Massachusetts does not conform to the OBBBA tips, overtime, or senior bonus deductions: tips and overtime remain fully subject to state income tax.
Income Tax Rate
5.00% / 9.00% above $1,107,750
Personal Exemption (Single)
$4,400
Tips / Overtime (OBBBA)
Not Exempt: MA non-conforming
PFML Employee Rate
0.46%
Massachusetts Income Tax Rates 2026
Massachusetts applies a flat 5.00% rate to taxable income up to $1,107,750. The 4% Millionaire Surtax applies to income above that threshold, resulting in a 9.00% effective rate on the excess. The $1,107,750 threshold is the same for all filing statuses: not doubled for MFJ, not halved for MFS.
Massachusetts Taxable Income (All Filing Statuses)
Rate
$0 – $1,107,750
5.00%
Above $1,107,750
9.00% (5.00% + 4% surtax)
Massachusetts Personal Exemptions 2026
Massachusetts does not use a standard deduction. Personal exemptions under MGL c.62, §3(B)(b) reduce taxable income. These amounts are fixed statutory figures set by the legislature: they are not indexed for inflation and have not changed from 2025.
Filing Status
Personal Exemption
Single
$4,400
Married Filing Jointly
$8,800
Married Filing Separately
$4,400
Head of Household
$6,800
Massachusetts OBBBA Conformity for Tips, Overtime and Senior Bonus
Massachusetts does not conform to the OBBBA tips, overtime, or senior bonus deductions.Massachusetts income tax conforms to the IRC as of January 1, 2024; OBBBA was enacted in 2025, placing it outside the conformity window. The MA Comptroller issued explicit guidance that "No-Tax Overtime" does not apply to Massachusetts state withholding. A draft Technical Information Release (TIR, October 2025) confirmed non-conformity for all three deductions. Employees who claim OBBBA deductions on their federal return must add those amounts back on their Massachusetts state return. A final TIR is pending: verify with MA DOR at mass.gov.
Massachusetts PFML Contribution Rates 2026
Massachusetts Paid Family & Medical Leave (PFML) is mandatory for most employees. For 2026, employees contribute 0.46% (medical leave: 0.28% + family leave: 0.18%) on wages up to the Social Security wage base. Employers with 25 or more covered employees contribute an additional 0.42%, for a total premium of 0.88%. The 2025 and 2026 PFML rates are identical.
Massachusetts taxes most income at a flat 5.00% rate. The 4% Millionaire Surtax applies to taxable income exceeding $1,107,750 for TY2026, bringing the effective rate on income above that threshold to 9.00%. The $1,107,750 threshold is CPI-indexed annually (series: $1,000,000 (2023), $1,053,750 (2024), $1,083,150 (2025), $1,107,750 (2026)). This threshold is the same for all filing statuses: it is not doubled for MFJ or halved for MFS.
Does Massachusetts use a standard deduction?
No. Massachusetts does not have a standard deduction. Instead, MA provides personal exemptions under MGL c.62, §3(B)(b): $4,400 for single filers and MFS, $8,800 for married filing jointly, and $6,800 for head of household. These are fixed statutory amounts set by the legislature and not adjusted for inflation.
Does Massachusetts conform to the OBBBA tips and overtime deductions?
No: Massachusetts does not conform to the OBBBA tips, overtime, or senior bonus deductions. Massachusetts income tax conforms to the IRC as of January 1, 2024; OBBBA was enacted in 2025 and is outside that conformity window. The MA Comptroller issued explicit guidance that "No-Tax Overtime" does not apply to Massachusetts state withholding. A draft Technical Information Release (TIR, October 2025) confirmed non-conformity for all three deductions. A final TIR is pending: tips and overtime remain fully subject to Massachusetts income tax at 5.00%.
What is Massachusetts PFML and how much is withheld from my paycheck?
Massachusetts Paid Family & Medical Leave (PFML) is a mandatory program for most employees. For 2026, the employee contribution rate is 0.46% (medical leave: 0.28% + family leave: 0.18%), applied to wages up to the Social Security wage base. Employers with 25 or more covered employees also contribute 0.42% (total premium: 0.88%). Employers with fewer than 25 covered employees are exempt from the employer share but must still collect and remit the employee portion.
Does Massachusetts tax Social Security benefits?
No. Massachusetts does not tax Social Security benefits. Most pension and retirement income is fully taxable at the 5.00% rate. However, some government pension income: including federal, Massachusetts state/local, and military retirement: may be partially or fully exempt from Massachusetts income tax. Verify your specific pension type with the MA DOR.
Does Massachusetts have a local income tax?
No. Massachusetts does not impose local income taxes. This makes Massachusetts's tax structure straightforward to calculate compared to states with variable local income or sales tax rates.
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