Massachusetts Tax Guide for Employers (2026) 

Massachusetts uses a flat income tax rate with an additional surtax on high earners. The state is unique in that the SIT calculation requires FICA and Medicare amounts to be computed first, as these are used as deductions in the Massachusetts withholding formula. 

Massachusetts imposes a flat state income tax rate of 5% for 2026, plus a 4% surtax on income exceeding $1,107,750. The withholding calculation is unique because it requires federal FICA and Medicare to be set up simultaneously—the state deducts Social Security and Medicare contributions from gross wages before calculating the state tax. Massachusetts also has a Paid Family and Medical Leave (PFML) program. 

Massachusetts supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 5%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 1.87%. 

Massachusetts requires contributions to Massachusetts Paid Family and Medical Leave. Both employer and/or employee contributions may apply. Verify the current rates and requirements at https://www.mass.gov/guides/employer-withholding-tax.

Follow these steps to begin withholding Massachusetts payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the Massachusetts DOR at mass.gov/dor
3. Register for SUTA and PFML with MassDUA at mass.gov/dua
4. Submit a Netchex tax team request to enable Massachusetts SIT, SUTA, and PFML
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Massachusetts payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Massachusetts payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Massachusetts Department of Revenue. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Massachusetts Department of Revenue at https://www.mass.gov/guides/employer-withholding-tax. 

The following official resources will help you stay current on Massachusetts payroll tax requirements: 

• Massachusetts Department of Revenue
• Massachusetts PFML
• Massachusetts Form M-4

Does Massachusetts have a Paid Family Leave program? 

Yes. Massachusetts PFML requires employer and employee contributions. Verify current rates at mass.gov/pfml. 

What form do Massachusetts employees complete? 

Employees complete Massachusetts Form M-4, the Employee’s Massachusetts Withholding Exemption Certificate. 

What is Massachusetts’s SUTA wage base? 

Massachusetts’s SUTA wage base is $15,000 per employee per year. Verify at mass.gov/dua. 

What is Massachusetts’s income tax rate? 

Massachusetts has a flat 5.0% income tax. An additional 4% surtax applies to annual income over $1 million. 

Does Massachusetts have local payroll taxes? 

No. Massachusetts does not impose local income or payroll taxes.