What Changes in Your Paycheck in Massachusetts
Your paycheck in Massachusetts shows a Massachusetts state income tax line item at a flat 5.0% rate—the same percentage whether you earn $1 or $1. For a $1 salary, that's ~ $1 annually (~ $1 per biweekly paycheck). Massachusetts paychecks only show state and federal tax deductions—no local income tax line items. The flat rate means your state tax increases linearly with income, unlike progressive states where tax increases accelerate with higher brackets Retirees see no state tax on retirement income distributions, making Massachusetts attractive for those relying on retirement savings.
Example State Tax in Massachusetts
What you'll pay in Massachusetts state income tax at different salary levels (single filer, no deductions):
| Gross Salary | State Tax (Year) | Effective Rate |
|---|---|---|
| $50,000 | $2,500 | 5.0% |
| $75,000 | $3,750 | 5.0% |
| $100,000 | $5,000 | 5.0% |
| $150,000 | $7,500 | 5.0% |
Use the calculator above to see your exact take-home pay with your filing status and deductions.
Is Massachusetts Better for You?
Massachusetts works well for:
Massachusetts works well for high earners who benefit from the flat rate structure. In states with progressive brackets, someone earning $1 might pay 6%-8% effective state tax. In Massachusetts, that same person pays a flat 5.0%, resulting in lower total state tax. Retirees also benefit from exemptions on Social Security and most retirement income, making Massachusetts attractive for those relying on retirement savings The flat rate provides predictable tax planning for all income levels.
Massachusetts may not be ideal if:
Massachusetts is challenging for lower-income workers, single filers, and homeowners in high-property-tax areas like Boston and surrounding suburbs. While 5.0% seems modest, it's a larger percentage of take-home pay for someone earning $1 compared to someone earning $1. Flat taxes are regressive in their effective impact. Additionally, Massachusetts's high property taxes can significantly impact homeowners—a $1 home in Boston might incur $1-$1+ annually in property taxes, which can offset income tax savings If you're early in your career, earning below median income, or a homeowner in high-property-tax areas, you might keep more net pay in states with progressive brackets that exempt low-income earners or in zero-tax states.
Common Mistakes People Make
Misconception: 'Flat tax means low tax.' Massachusetts's 5.0% flat rate isn't necessarily low—it's simple, but not necessarily cheap. For someone earning $1, that 5.0% is $1, which could be more than they'd pay in a progressive state with generous lower brackets. The 'flat tax' label sounds appealing, but it doesn't automatically mean you'll pay less than in states with graduated brackets—especially for middle-income earners who might benefit from progressive brackets elsewhere.
Misconception: 'No local taxes means Massachusetts is cheaper than other states.' While Massachusetts avoids local income tax complications, the flat 5.0% rate combined with sales taxes (6.25%) and high property taxes (among the highest in the nation, especially in Boston and surrounding suburbs) can create a significant tax burden. A homeowner in Massachusetts with a $1 property might pay $1-$1+ annually in property taxes, which can offset income tax advantages compared to other states.
Misconception: 'Everyone pays the same percentage, so it's fair.' While everyone pays the same 5.0% rate in Massachusetts, the economic impact is different. 5.0% of a $1 salary ($1) represents a larger share of disposable income than 5.0% of $1 ($1). Flat taxes are proportionally equal, but not necessarily equitable in terms of real-world impact on people's financial lives—lower earners pay a larger percentage of their ability to cover necessities, while high earners benefit from not being pushed into higher brackets.
Massachusetts Income Tax Rate
5.00% flat rate
Everyone pays 5.00% of taxable income, regardless of income level or filing status.
Key Facts That Affect Your Take-Home Pay
- Massachusetts uses a flat 5.0% income tax rate for all income levels and filing statuses—unlike federal taxes or states with graduated brackets, your Massachusetts tax percentage stays the same whether you earn $1 or $1. This flat rate is higher than Pennsylvania's 3.07% but lower than Illinois's 4.95%.
- Massachusetts's flat tax rate means everyone pays the same 5.0% rate regardless of income level, creating a simple but potentially regressive system where lower earners pay a larger percentage of their take-home pay toward state tax than higher earners. The rate is moderate compared to other flat-tax states.
- Massachusetts does not charge income tax at the municipal level, meaning uniform tax withholding across all areas. All Massachusetts residents have the same income tax burden—the flat 5.0% state rate.
One Thing to Know
Massachusetts property taxes are among the highest in the nation (especially in Boston and surrounding suburbs), but they're not on your paycheck. Many people focus on the 5% income tax rate and are shocked when they see $1-$1+ annual property tax bills, which can offset the income tax advantage compared to other states.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Massachusetts tax laws.