What is the Massachusetts income tax rate for 2025?

Massachusetts has a 5% flat income tax rate for most taxpayers. There's an additional 4% surtax on income over $1 million, making the total rate 9% for high earners. For someone earning $75,000, the rate is simply 5%. For someone earning $1.5 million, income up to $1M is taxed at 5%, and income over $1M is taxed at 9%.

Who pays the 4% Massachusetts millionaire tax?

The 4% surtax (called the 'millionaire tax' or 'Fair Share Amendment') applies to income over $1 million per year. This includes wages, capital gains, dividends, and other income. If you earn under $1 million, you're not affected—you only pay the standard 5% rate.

How does Massachusetts compare to other New England states?

Massachusetts (5% flat) is competitive. New Hampshire has 0% tax on wages (but 3% on dividends/interest), Connecticut has progressive rates up to 6.99%, Rhode Island has progressive rates up to 5.99%, Vermont has progressive rates up to 8.75%, and Maine has progressive rates up to 7.15%. For middle-income earners, MA is mid-range.

Are there local income taxes in Massachusetts cities?

No, Massachusetts does not allow cities or towns to levy local income taxes. The 5% state rate (or 9% for income over $1M) is all you pay, whether you live in Boston, Cambridge, Worcester, Springfield, or anywhere else in Massachusetts.

Does Massachusetts tax retirement income?

Massachusetts does not tax Social Security benefits. However, Massachusetts does tax other retirement income (401k, IRA, pension distributions) at the standard 5% rate. There are no special exemptions for retirement income, making Massachusetts less retirement-friendly than states like Pennsylvania (no retirement tax) or Florida (no income tax).

How much Massachusetts state tax will I pay on $75,000?

On $75,000 gross income, Massachusetts has no standard deduction (uses personal exemption system instead). Most single filers pay close to 5% effective rate. On $75,000: approximately $3,750 in MA state tax (5% × $75,000). Exact amount varies slightly based on exemptions.

Massachusetts Income Tax Calculator 2025 - MA State Tax Rate (5% + Surtax)

Calculate Your Massachusetts State Tax

Annual Gross Income ($)

Gross Income: $0

Base Tax (5%): $0

Millionaire Surtax (4%): $0

Total MA State Tax: $0

Effective Tax Rate: 0%

After-Tax Income: $0

Massachusetts Income Tax Rate for 2025

Massachusetts has a 5% flat income tax rate for most taxpayers. High earners (income over $1 million) pay an additional 4% surtax, for a total rate of 9% on income above $1 million.

                    💡 Simple for Most People: If you earn under $1 million, you pay exactly 5% on your income. Massachusetts uses personal exemptions instead of standard deductions, but for most W-2 employees, the effective rate is very close to 5%.
                

                    ⚠️ Millionaire Surtax: Passed by voters in 2022, the "Fair Share Amendment" adds a 4% surtax on income over $1 million. This means:
                    Income up to $1M: taxed at 5%
Income over $1M: taxed at 9% (5% base + 4% surtax)

                

Real Examples

$75,000 Income (typical middle-class):

Income: $75,000
Tax: $75,000 × 5% = $3,750
Effective Rate: 5%
No surtax applies

$1,500,000 Income (high earner):

First $1,000,000 × 5% = $50,000
Next $500,000 × 9% = $45,000
Total Tax: $95,000
Effective Rate: 6.33%

How Massachusetts Compares

State	Tax System	Tax on $75k	vs Massachusetts
Massachusetts	5% flat	$3,750	—
New Hampshire	0% on wages	$0	NH saves $3,750
Connecticut	Progressive (up to 6.99%)	~$3,400	CT saves $350
Rhode Island	Progressive (up to 5.99%)	~$3,500	RI saves $250
Vermont	Progressive (up to 8.75%)	~$4,500	MA saves $750
Maine	Progressive (up to 7.15%)	~$4,100	MA saves $350

                    💡 New England Position: Massachusetts is mid-range for New England. New Hampshire (0% on wages) is best for W-2 employees. MA beats Vermont and Maine. On par with CT and RI. The simple 5% flat rate is easier to understand than progressive systems in neighboring states.
                

Retirement Income in Massachusetts

                    Social Security: 100% tax-free
401k/IRA Withdrawals: Taxed at 5%
Pension Income: Taxed at 5%
No special exemptions for retirement income

                

Massachusetts is moderately retirement-friendly. No tax on Social Security is good, but 5% on other retirement income is higher than states like Pennsylvania (0% on all retirement) or Florida/Tennessee (0% income tax).

Best Places to Live in Massachusetts

For Income $50,000 - $80,000

Recommended: Worcester, Springfield, Lowell, Brockton

Why: More affordable housing, lower cost of living, still in MA with good services

Tax Impact: 5% state rate (~$2,500-4,000/year)

For Income $80,000 - $150,000

Recommended: Quincy, Malden, Arlington, Brookline, Somerville

Why: Close to Boston, good schools, T access

Tax Impact: 5% state rate (~$4,000-7,500/year)

For Income $150,000 - $500,000

Recommended: Newton, Cambridge, Lexington, Concord, Wellesley

Why: Top-rated schools, affluent neighborhoods, professional jobs

Tax Impact: 5% state rate (~$7,500-25,000/year)

For Income $1M+

Recommended: Consider New Hampshire or Florida

Why: 9% total rate on income over $1M = $90k tax on $1M. New Hampshire has 0% on wages. Florida has 0% income tax.

Alternative: Weston, Dover, Manchester-by-the-Sea if staying in MA

                    ⚠️ Millionaire Alert: If you earn over $1M, the 4% surtax costs $40,000+ per year. Many high earners are moving to New Hampshire (live tax-free, work in MA) or Florida. Moving from MA to NH on $1.5M income saves ~$67,500/year in state tax!
                

When Moving to Massachusetts Makes Sense

                    ✅ Move to Massachusetts if:
                    You work in tech/biotech (Cambridge biotech cluster, Boston tech scene)
You value world-class universities (MIT, Harvard, BU, BC, etc.)
You're moving from higher-tax states (NY, CA, VT, ME)
You earn under $1M and want a simple flat tax
You prioritize excellent healthcare (Mass General, Brigham)
You value culture, history, and education

                

                    ⚠️ Think Carefully if:
                    You earn over $1M (9% rate is high—consider NH or FL)
You're retiring with significant income (5% on all retirement income)
You're moving from New Hampshire (0% on wages)
You're cost-conscious (housing in Boston area is very expensive)

                

Affordable Tax Filing for Massachusetts

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State rankings: Lowest Tax States 2025 | Best States for Retirees | States with Flat Tax | Highest Tax States 2025

Related Resources

📊 Data Sources: MA Department of Revenue. Last updated: November 2025.