How Paycheck Taxes Work in Massachusetts
How paycheck taxes work in Massachusetts: Your employer withholds federal income tax based on your W-4, then Massachusetts state income tax using state withholding tables. Social Security (6.2%) and Medicare (1.45%) are also deducted from each paycheck. Massachusetts applies a 5% flat tax on most income. A 4% Millionaires Tax surtax applies to income exceeding $1 million annually.
Massachusetts State Tax Information
Massachusetts uses a flat 5% state income tax (plus 4% surtax on income over $1M).
Massachusetts applies a 5% flat tax on most income. A 4% Millionaires Tax surtax applies to income exceeding $1 million annually.
Federal Income Tax
Federal income tax uses progressive brackets — higher income is taxed at higher rates. The standard deduction reduces your taxable income before brackets apply. Your W-4 determines how much your employer withholds each pay period.
Social Security
Social Security tax (FICA) is 6.2% of wages up to the annual wage base ($184,500 in 2026). Both employee and employer pay this amount; this calculator shows the employee portion.
Medicare
Medicare tax is 1.45% on all wages with no cap. High earners pay an additional 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).