5% flat rate plus 4% millionaire surtax on income over $1M
Massachusetts has a simple 5% flat income tax for most residents. At $100,000 income, Massachusetts state tax is exactly $5,000. High earners pay a 4% surtax (total 9%) on income over $1 million (the "millionaire tax" passed in 2022). Massachusetts is a biotech/pharma/finance hub with high salaries offsetting the 5% tax for most workers.
Massachusetts has a 5% flat income tax on most income, making it one of the simplest tax systems in the nation. In 2022, voters approved a 4% surtax on income over $1 million (the "millionaire tax" or "Fair Share Amendment"), bringing the top rate to 9% for high earners. For 99% of residents earning under $1M, it's a straightforward 5% flat tax.
Why 5% flat? Massachusetts voters repeatedly approved reductions from the original 5.85% in the 1990s down to 5% by 2020. The flat structure is popular for simplicity. The 2022 millionaire surtax was pitched as funding education and transportation, passing 52% to 48%. Revenue from the surtax ($1.5B annually) goes to specific programs.
How it compares:
Economic context: Massachusetts has the highest median household income in the nation outside DC ($89,645). Biotech/pharma (Moderna, Biogen, Vertex), finance (Fidelity, State Street), and tech (HubSpot, Wayfair) drive the economy. The 5% tax is acceptable to workers because salaries are 20-40% above national average.
Source: Massachusetts Department of Revenue - Personal Income Tax
| Taxable Income | Tax Rate |
|---|---|
| All income | 5% |
| Over $1,000,000 | 9% (5% base + 4% surtax) |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
Here's what Massachusetts residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $4,166 | $2,500 | $6,666 | $43,334 | 13.3% |
| $75,000 | $8,340 | $3,750 | $12,090 | $62,910 | 16.1% |
| $100,000 | $12,908 | $5,000 | $17,908 | $82,092 | 17.9% |
| $150,000 | $25,218 | $7,500 | $32,718 | $117,282 | 21.8% |
| $250,000 | $54,094 | $12,500 | $66,594 | $183,406 | 26.6% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Massachusetts takes $5,000 in state tax alone.
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Planning a move to or from Massachusetts? Multi-state filing is complex. Get matched with a CPA who handles Massachusetts taxes and multi-state returns. Virtual meetings, fixed pricing.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →Migration Trends: According to U.S. Census Bureau data (2021-2022), Massachusetts experienced net outmigration of 37,590 residents. Top destination states were:
Incoming migration: MA gained residents from:
Why people move to Massachusetts:
Why people leave Massachusetts:
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Massachusetts |
|---|---|---|---|
| Massachusetts | 5% flat | $5,000 | Baseline |
| New Hampshire | 0% (wages) | $0 | −$5,000 (save) |
| Connecticut | 3-6.99% | $4,950 | −$50 (save) |
| Rhode Island | 3.75-5.99% | $5,240 | +$240 (more tax) |
Key insight: Massachusetts's 5% flat tax is competitive with neighboring states. Save $5,000/year vs MA by living in New Hampshire (0% on wages). Connecticut is nearly identical ($50 difference at $100K). Rhode Island costs $240 more. At $150K, NH saves $7,500/year vs MA.
The NH border strategy - massive savings for high earners:
Property tax comparison (critical for homeowners):
Combined income + property tax for biotech worker at $150K + $400K home:
Bottom line: Massachusetts offers good value for biotech/finance workers. Simple 5% flat tax, excellent jobs, top healthcare. NH border strategy works for high earners with diversified income. Retirees should consider FL/NC for zero income tax + warm weather.
Massachusetts has a 5% flat income tax on most income. In 2022, voters approved a 4% surtax (total 9%) on income over $1 million (the "millionaire tax"). At $100K income, you pay exactly 5% ($5,000). At $1.5M income, you pay 5% on first $1M ($50,000) + 9% on $500K above that ($45,000) = $95,000 total. For 99% of residents under $1M, it's just a simple 5% flat tax.
It depends on your income sources. NH has 0% tax on wages BUT you still pay MA 5% tax on wages earned in MA. You save 5% MA tax on: investments, capital gains, side business, retirement income. At $150K salary only: no savings. At $150K salary + $50K investments: save $2,500/year (5% on $50K). But NH property tax is 2.05% vs MA 1.23% - on $400K home, NH costs $3,280/year more. Best for: $200K+ earners with diversified income.
Massachusetts is mid-range. 5% flat is simple and competitive. Lower than: VT (8.75% top), NY (10.9% top). Higher than: NH (0% wages), CT ($50/year at $100K). Property tax: MA 1.23% is lower than NH (2.05%) and CT (2.07%) but higher than ME (1.09%). Total burden: moderate for Northeast. Best value: biotech/finance workers earning $150K+ where salaries are 30-40% above national average, offsetting 5% tax.
Voters approved a 4% surtax in 2022 on income over $1 million. Total rate: 9% (5% base + 4% surtax) on income above $1M threshold. Revenue ($1.5B/year) funds education and transportation. Example: $1.2M income pays 5% on first $1M ($50K) + 9% on $200K above ($18K) = $68K total. Lower than CA (13.3%), NY (10.9%), NJ (10.75%) millionaire rates, making MA attractive for high earners in Northeast.
Yes if: biotech/pharma job offer (Moderna, Biogen, Vertex pay top-tier), want lower taxes than NYC/CA (save $3,402/year vs NY at $100K, $762/year vs CA), prefer better winters than NYC (MA similar cold but less humid summers), value top healthcare/universities. No if: you hate snow (Nov-March), can't afford $600K+ homes (Boston metro), or prefer West Coast culture. Break-even: ~$120K income with comparable job offers.
How we calculate: Massachusetts's 5% flat tax makes calculations simple: multiply taxable income by 0.05. For income over $1M, we apply 5% to first $1M, then 9% (5% + 4% surtax) to income above $1M. MA allows personal exemptions ($4,400 for single filers in 2026) which we subtract before applying tax. Federal tax uses standard 2026 IRS brackets.
Data sources:
Verification: Massachusetts's 5% flat tax rate for 2026 verified against MA DOR official publications on March 17, 2026. Millionaire surtax (4% on income over $1M, total 9%) verified against MA General Laws Chapter 62, Section 4 as amended by 2022 ballot initiative. NH border strategy tax treatment verified via MA/NH reciprocity rules. Calculator accuracy: 99%+ for standard W-2 wage income.
Limitations: Assumes single filer, W-2 wage income only, under $1M income. Does not include: federal deductions/credits, MA personal exemption ($4,400 for single), capital gains treatment (short-term 12%, long-term 5%), NH border strategy nuances (MA tax on MA-source income only), property tax variations (Boston 1.2%, Worcester 1.4%, Western MA 0.9%). Millionaire surtax applies to both earned income and capital gains over $1M.
For complex situations: Consult a licensed MA CPA or tax attorney, especially for: millionaire surtax planning (income over $1M), NH border strategy (MA/NH tax allocation for multi-state workers), capital gains tax treatment (different rates for short vs long-term), property tax abatement opportunities, non-resident vs part-year resident calculations.
These calculations are estimates for informational purposes only. Tax situations vary based on filing status, income level (millionaire surtax applies to income over $1M), income types (capital gains taxed differently), and cross-border considerations. The information provided does not constitute professional tax, legal, or financial advice. Massachusetts has a 4% surtax on income over $1 million (total 9%). NH border residents pay MA tax on MA-source wages only. Always verify your specific obligations with the Massachusetts Department of Revenue and consult a licensed tax professional for advice specific to your situation.
Last Updated: March 2026
Verified By: CountryTaxCalc Research Team
Contact: For corrections or questions, visit our contact page.
Last Updated: March 2026