Massachusetts taxes almost all income at a flat 5%, the same rate whether you earn $40,000 or $400,000. A separate 4% surtax applies only to income above roughly $1 million.
Despite its old “Taxachusetts” reputation, the flat 5% is moderate for most workers; the real bite for high earners is the newer millionaire surtax. Here is how it lands on a typical paycheck. See your exact take-home with the free Massachusetts paycheck calculator.
How Massachusetts's income tax works
Massachusetts applies a single 5% rate to your income after a personal exemption ($4,400 single / $8,800 married). There are no graduated brackets for ordinary earners and no local income tax, so your state tax is easy to predict.
Since 2023, income above about $1,083,150 (the “Fair Share” threshold, indexed yearly) pays an extra 4% surtax, for a 9% top rate. Massachusetts also withholds a small Paid Family and Medical Leave (PFML) contribution that this estimate does not model.
Your take-home on a $65,000 salary in Massachusetts
Here is how a $65,000 salary breaks down for a single filer, using 2025 federal and FICA figures alongside Massachusetts's a flat 5% income tax, plus a 4% surtax on income over $1 million.
| Item | Annual |
|---|---|
| Federal income tax | $5,246 |
| FICA (Social Security + Medicare) | $4,973 |
| Massachusetts income tax | $3,030 |
| Take-home pay | $51,752 |
| Percent of gross kept | 79.6% |
On a $65,000 salary a single filer owes about $3,030 in Massachusetts income tax and keeps roughly $51,752, or 79.6% of gross. That is noticeably less than in neighboring New Hampshire, which taxes no wage income, and Greater Boston's high housing costs mean that smaller take-home buys less than the same paycheck would in much of the country. Compare with New Hampshire.
The flat 5% and the millionaire surtax
Massachusetts is unusual in pairing a simple flat 5% with a steep surtax at the very top. For the vast majority of workers, only the 5% matters; the 4% surtax affects income above roughly $1 million, so almost no wage earner pays it.
Massachusetts does not tax Social Security benefits, but it does tax most other retirement income at the flat 5%, so retirees feel the rate on 401(k) and pension withdrawals.
How to keep more of your Massachusetts paycheck
Because Massachusetts applies a flat 5% to nearly all income, lowering your taxable wages is the most reliable lever: max a traditional 401(k) and HSA, both of which cut your Massachusetts and federal taxable income (and the HSA also skips FICA).