Massachusetts Income Tax Rate for 2026
Massachusetts taxes wages and most other income at 5% for 2026, plus a 4% surtax above $1,107,750 of taxable income. Examples of Massachusetts state income tax calculations for Single and Married Filing Jointly statuses are compared.
Massachusetts has a statutory income tax rate of 5% on wages and most other income for 2026. The same base rate applies regardless of filing status, including Single, Married Filing Jointly, Married Filing Separately, and Head of Household. An additional 4% surtax applies to taxable income above $1,107,750. The 2026 tax year covers income earned from January 1, 2026 through December 31, 2026. For calendar-year filers, federal Form 1040 series returns and Massachusetts Form 1 tax returns are generally due April 15, 2027.
Massachusetts's base income tax rate has remained at 5% since 2020, following earlier reductions tied to state revenue growth. The 4% surtax, often called the millionaire tax, took effect in 2023. Its income threshold is adjusted annually for inflation and increased from $1,083,150 in 2025 to $1,107,750 in 2026. Only taxable income above that threshold faces the additional tax, bringing the combined rate on excess wage income to 9%. The same threshold applies to both Single and Married Filing Jointly statuses.
Examples
Massachusetts Income Tax Calculation Examples
The goal of these examples is to compare Single and Married Filing Jointly statuses at the same $80,000 annual income per person. The Single example uses $80,000 of household income, while the Married Filing Jointly example assumes each spouse earns $80,000, for a combined $160,000. The results match our All 50 States income tax calculator using $80,000 or $160,000 and the corresponding filing status.
To simplify the calculations, both examples assume full-year Massachusetts residency, W-2 wages only, no dependents, and taxpayers under age 65 who are not blind or claimed as dependents. Massachusetts uses federal gross income as a starting point, with state-specific adjustments, deductions, and exemptions. It does not have a standard deduction, and the federal standard deduction does not reduce Massachusetts taxable income. These examples apply personal exemptions only, with no deductions, other state adjustments, or tax credits. See the All 50 States calculator for a full list of assumptions and sources.
Massachusetts Filing Status Comparison (2026 Tax Year)
| Tax Metric | Single | Married Filing Jointly |
|---|---|---|
| Household Income | $80,000 | $160,000 |
| Standard Deduction | $0 | $0 |
| Personal Exemption | $4,400 | $8,800 |
| Taxable Income | $75,600 | $151,200 |
| State Income Tax | $3,780 | $7,560 |
| Effective Tax Rate | 4.73% | 4.73% |
| Marginal Tax Rate | 5% | 5% |
Massachusetts allows a deduction of up to $2,000 per person for qualifying Social Security and Medicare contributions. Each spouse may deduct their own contributions on a joint return. This deduction is not included in the calculator figures above, so an eligible household's tax may be lower. The Social Security and Medicare deduction FAQ explains the limit.
Looking at the table above, we can see that the same 5% tax rate applies to both Single and Married Filing Jointly statuses. The joint personal exemption doubles along with household income, producing twice the taxable income and state income tax. Both examples have the same 4.73% effective tax rate. The joint tax equals the combined tax of two single filers who each earn $80,000, so this simplified comparison shows no Massachusetts marriage penalty. The surtax would create a marriage penalty once the joint household's taxable income exceeds the threshold, because that threshold does not double for joint filers. Next, we will review the step-by-step calculations for each filing status.
Step-by-Step Example 1: Single
For a single filer with $80,000 of household income, the Massachusetts personal exemption is $4,400. With wages only and no deductions or other adjustments, subtracting the exemption gives $75,600 of taxable income.
- Taxable income: Subtract the personal exemption from household income.
- Estimated Massachusetts income tax: Multiply taxable income by the 5% rate. No surtax applies at this income.
Massachusetts effective tax rate: $3,780 divided by $80,000 of household income equals 4.73%, rounded.
Massachusetts marginal tax rate: 5%, the rate applied to each additional dollar of taxable wage income in this example.
Step-by-Step Example 2: Married Filing Jointly
Now let's apply the same calculation to a married couple filing jointly. Each spouse earns $80,000 with a combined household income of $160,000. The Massachusetts personal exemption for Married Filing Jointly is $8,800.
- Taxable income: Subtract the joint personal exemption from household income.
- Estimated Massachusetts income tax: Multiply taxable income by the same 5% rate. The joint household is also below the surtax threshold.
Massachusetts effective tax rate: $7,560 divided by $160,000 of household income equals 4.73%, rounded.
Massachusetts marginal tax rate: 5%, unchanged from the Single example.
Takeaway
Massachusetts Income Tax Takeaways
The 5% rate applies to taxable income: Personal exemptions reduce the wages subject to tax in these examples. Both households have a 4.73% effective rate, below their 5% marginal rate. Eligible deductions and credits can reduce the final tax amount and effective rate further.
Equal income per person produces equal tax per person here: At $80,000 per person, the joint exemption, taxable income, and state tax are twice the Single amounts. This comparison shows no Massachusetts marriage penalty under the stated assumptions.
The surtax threshold does not double for married couples: For 2026, the additional 4% tax begins above $1,107,750 of taxable income for both Single and Married Filing Jointly. This can create a marriage penalty when spouses' combined taxable income exceeds the joint threshold.
Massachusetts vs Neighboring States
| State | Tax Year | Tax Rate | Rate Type |
|---|---|---|---|
| Massachusetts | 2026 | 5% + 4% surtax | Flat + Surtax |
| Connecticut | 2026 | 2% - 6.99% | Progressive |
| New Hampshire | 2026 | 0% | None |
| New York | 2026 | 3.9% - 10.9% | Progressive |
| Rhode Island | 2026 | 3.75% - 5.99% | Progressive |
| Vermont | 2025 | 3.35% - 8.75% | Progressive |
FAQ
Frequently Asked Questions
Is Massachusetts a flat tax state?
Massachusetts uses a flat 5% base rate on wages and most other income for 2026, with an additional 4% surtax above $1,107,750 of taxable income. The same base rate applies regardless of filing status. Exemptions and deductions can reduce taxable income, so the 5% rate generally does not apply to the entire paycheck.
What is the Massachusetts income tax rate for 2026?
Massachusetts taxes wages, interest, dividends, and most long-term capital gains at 5% for 2026. An additional 4% surtax applies to the portion of taxable income above $1,107,750. For wages, this produces a combined 9% rate on the amount above the threshold. Short-term capital gains are generally taxed at 8.5% before any surtax, and special rules apply to certain other investment gains.
Does Massachusetts have a millionaire tax?
Yes. Massachusetts imposes an additional 4% tax on taxable income above $1,107,750 for 2026. Often called the millionaire tax or Fair Share surtax, it began in 2023 with a $1 million threshold. The threshold is adjusted annually for inflation and is the same for Single and Married Filing Jointly. Only income above the threshold is subject to the extra 4%.
What is the Massachusetts marginal tax rate?
The Massachusetts statutory marginal tax rate on wage income is 5% for 2026 until taxable income reaches the $1,107,750 surtax threshold. Above that threshold, each additional dollar of taxable wage income faces a combined 9% rate. Both Single and Married Filing Jointly use these rates and the same threshold. Other income types, deductions, and credits can affect the final tax calculation.
What is the Massachusetts effective tax rate?
The Massachusetts effective income tax rate is state income tax divided by household income. Our 2026 Single example at $80,000 and Married Filing Jointly example at $160,000 both produce a 4.73% effective rate. These examples apply personal exemptions only and exclude deductions and tax credits. The effective rate can differ with other income levels, deductions, exemptions, credits, or the 4% surtax.
Does Massachusetts have a standard deduction?
No. Massachusetts does not have a standard deduction for individual income tax. The federal standard deduction does not reduce Massachusetts taxable income either.
Does Massachusetts have a personal exemption?
Yes. For 2026, Massachusetts allows a personal exemption of $4,400 for Single or Married Filing Separately, $8,800 for Married Filing Jointly, and $6,800 for Head of Household. These amounts are set by state law and are not automatically adjusted annually for inflation. An additional $700 exemption is available for each taxpayer or spouse age 65 or older at year-end. A separate $2,200 exemption is available for each taxpayer or spouse who is legally blind.
Does Massachusetts have a dependent exemption?
Yes. Massachusetts allows a $1,000 exemption for each qualifying dependent for 2026. Qualifying children generally must be under age 19, or under age 24 if full-time students, at year-end. The age limit does not apply to a permanently and totally disabled child. Relationship, residency, and support requirements also apply. Certain relatives can qualify under separate income and support rules. The exemption reduces taxable income rather than subtracting $1,000 directly from tax owed.
Does Massachusetts allow a deduction for Social Security and Medicare contributions?
Yes. Massachusetts allows a deduction of up to $2,000 per person for qualifying Social Security and Medicare contributions for 2026. On a joint return, each spouse may deduct up to $2,000 of their own contributions. One spouse's unused limit cannot be transferred to the other. The deduction reduces taxable income, so a full $2,000 deduction saves $100 at the 5% rate before credits.
Does Massachusetts allow deductions for tips and overtime in 2026?
No. Massachusetts has not adopted the federal deductions for qualified tips and qualified overtime compensation for 2026. The Department of Revenue confirms this treatment in Technical Information Release 26-4. Tips and overtime wages generally remain subject to Massachusetts income tax even when a federal deduction is available.
Does Massachusetts have a marriage penalty?
Our simplified 2026 comparison shows no Massachusetts marriage penalty at $80,000 of annual income per person. The $7,560 joint tax equals the combined tax of two single filers who each owe $3,780. Higher-income couples may face a marriage penalty because the $1,107,750 surtax threshold does not double on a joint return. Beginning with tax year 2024, couples who file jointly for federal purposes generally must also file jointly in Massachusetts, subject to limited exceptions.
References:
- Massachusetts Tax Rates. Massachusetts Department of Revenue. Current income-class rates and the 2026 surtax threshold. Retrieved September 15, 2026.
- Massachusetts 4% Surtax on Taxable Income. Massachusetts Department of Revenue. Confirms the $1,107,750 threshold for 2026, annual indexing, and joint-return rules. Retrieved September 15, 2026.
- Massachusetts Personal Income Tax Exemptions. Massachusetts Department of Revenue. Personal, dependent, age, and blindness exemption amounts and eligibility. Statutory amounts remain applicable for 2026. Retrieved September 15, 2026.
- Massachusetts Social Security (FICA) and Medicare Deduction. Massachusetts Department of Revenue. Explains the $2,000 limit per person and separate limits for spouses. This deduction is excluded from the example figures. Retrieved September 15, 2026.
- Differences Between Massachusetts and Federal Tax Law for Personal Income. Massachusetts Department of Revenue. Explains why the federal standard deduction is not allowed and identifies separate state deductions. Retrieved September 15, 2026.
- TIR 26-4: Massachusetts Conformity to Certain Provisions in Public Law No. 119-21. Massachusetts Department of Revenue, June 23, 2026. Federal gross-income starting point and nonconformity to federal tips and overtime deductions. Retrieved September 15, 2026.
- 2020 Personal Income and Corporate Excise Tax Law Changes. Massachusetts Department of Revenue. Confirms that the 5% base rate began in 2020. Retrieved September 15, 2026.
- Massachusetts General Laws, Chapter 62, Section 3. Massachusetts Legislature. Establishes deductions, personal exemption limits, and dependent exemptions. Retrieved September 15, 2026.
- Massachusetts General Laws, Chapter 62, Section 4. Massachusetts Legislature. Base and capital-gains rates, earlier conditional rate reductions, and the additional 4% surtax with annual threshold indexing. Retrieved September 15, 2026.
- Massachusetts General Laws, Chapter 62C, Section 6. Massachusetts Legislature. General filing deadline and joint-return requirements. Retrieved September 15, 2026.