Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Income Before Tax
Take Home Pay
Average Tax Rate
$ = US Dollar
Income Before Tax
Federal Income Tax
State Income Tax
State Tax Credits
State Disability Insurance
State Paid Family and Medical Leave (PFML)
State Unemployment Insurance
State Worker Comp
State Transit Tax
Mental Health Services Tax
Local Income Tax
Take Home Pay
Average Tax Rate
Table of Contents
Enter your employment income into the paycheck calculator above to estimate how taxes in Massachusetts, USA may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
This paycheck calculator also works as an income tax calculator for Massachusetts, as it shows you how much income tax you have to pay based on your salary and personal details.
To learn more about Massachusetts, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Frequently Asked Questions
What is the income tax rate in Massachusetts?
The state income tax rate in Massachusetts is 5% while federal income tax rates range from 10% to 37% depending on your income. This paycheck calculator can help estimate your take home pay and your average income tax rate.
How many income tax brackets are there in Massachusetts?
The state income tax system in Massachusetts only has a single tax bracket. However, there are multiple tax brackets for federal income tax. For more details, check out our detail section.
How Your Massachusetts Paycheck Works
Nestled in the heart of New England, the Commonwealth of Massachusetts boasts a blend of old and new, natural and urban, traditional and progressive. From the historic landmarks of Boston and Plymouth to the cutting-edge industries of biotech and robotics, from the scenic shores of Cape Cod and Nantucket to the rugged peaks of the Berkshires, Massachusetts offers something for everyone.
The Bay State, as it is affectionately called, has a rich heritage of culture, diversity, and innovation. There are also many opportunities in the job market here and knowing how your paycheck works is a smart move.
The main item taken from your earnings is income tax. As the name suggests, this tax is imposed by governments on income generated by individuals or businesses. In Massachusetts, there are two levels of income tax: federal and state.
Federal income tax is collected by the U.S. government and applies to all U.S. residents regardless of where they live or work.
State income tax is collected by Massachusetts and applies to residents and non-residents who earn income here in the state.
Massachusetts has a flat income tax rate of 5% on all taxable income. For the most part, this means that almost everyone will pay the same percentage of their income to the state. That said, a couple exceptions do exist. For example, if you earn less than certain limits in a year, you don’t have to file a Massachusetts tax return. In addition, starting from 2023, there will be an additional 4% surtax on taxable income over $1 million.
When you start a job, your employer will ask you to fill out a form called Massachusetts Employee’s Withholding Exemption Certificate (Form M-4), which helps to determine how much state income tax to withhold from your paycheck. This form allows you specify your personal situation, such as your marital status, number of dependents, or other factors that may affect your taxable income.
You can also request additional withholding amounts if you want to have more taxes taken out of your paycheck. This might be the case if you have non-wage income outside your job that isn't subject to withholding.
Form M-4 is similar to Form W-4, which is the federal equivalent. Form W-4 tells your employer how much federal income tax to withhold from each paycheck based on factors such as your filing status (single, married, etc). The federal income tax system is progressive and has different tax rates for different brackets of your income.
Both of these forms can and should be updated at any time during the year if your personal situation changes. By keeping these forms properly filled with accurate information, you can avoid underpaying or overpaying taxes throughout the year.
In Massachusetts, state income tax also applies to unearned income, such as interest and dividends. This means that if you have any investments or savings accounts that generate interest or dividends, you'll have to pay 5% state income tax on those earnings as well.
Aside from income tax, another federal withholding that applies to most workers in Massachusetts is Social Security tax. This is a federal program that provides retirement benefits and disability insurance for many workers. The Social Security tax rate is 6.2% of your wages up to a certain limit ($147,000 for 2022).
There's also Medicare tax as well. This is another federal program that provides health insurance for seniors and people with certain disabilities. The Medicare tax rate is 1.45% of all your wages. High income earnings are also subject to an additional 0.9% Medicare surtax.
Both Social Security and Medicare make up the FICA taxes, which stands for the Federal Insurance Contributions Act. With the exception of the Medicare surtax, your employer will match your FICA tax payment and contribute as well.
Depending on your job, you may also have other things taken out of your gross pay. A few examples include: health insurance premiums, retirement plan contributions (401(k), IRA, Roth IRA, etc), flexible spending accounts (FSA, HSA, etc), life insurance premiums, and disability insurance premiums.
Some of these may be considered as pre-tax items and can help lower your taxable income which then lowers your tax. Otherwise, they would be considered post-tax items and would not affect your tax liability.
As far as standard deductions go, a state personal exemption exists and varies based on your filing status. Massachusetts is unique in that contributions to social security and medicare are both deductible up to a certain limit.
One other tax also exists in the form of a paid family and medical leave (pfml) insurance tax. This is calculated based on your income up to the social security limit.
More From Investomatica:
For sales tax, please visit our Massachusetts Sales Tax Rates and Calculator page.
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- The content shown on this page is strictly for educational purposes only. It does not represent advice nor is it a substitute for a professional advisor.
- Estimated results are just estimates. They are not a guarantee of future results.
- Tax situations vary widely and calculations can get very complex. This paycheck calculator only provides a rough estimate according to the most common scenarios for standard employment income that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary.
- Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Generally, we review changes once a year since tax codes usually change once a year. If you notice a major miscalculation or error with our paycheck calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific questions about your own personal situation, please consult a licensed tax professional.
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