Income Tax for Massachusetts (2026)

How This Calculator Works in Massachusetts

This calculator applies Massachusetts's 2026 tax brackets and rates to estimate your state income tax liability. Enter your income and filing status to see your marginal rate, effective rate, and estimated tax owed.

Massachusetts Overview

Massachusetts levies a flat 5% income tax, plus a 4% 'Millionaire's Tax' surtax on income exceeding $1 million (approved by voters in 2022, effective 2023). Short-term capital gains face a separate 12% rate. The state's mixed flat-plus-surtax structure is unusual — it effectively functions as a two-bracket progressive system despite being called a flat tax, and the millionaire's threshold is inflation-adjusted annually.

How Massachusetts Compares

Massachusetts's top income tax rate of 5% compares to New York at 10.9% and Connecticut at 6.99%. The rate differences can meaningfully impact take-home pay for workers near state borders.

Massachusetts's income tax rate of 5% compares to a national average of approximately 5.04%. This is below the national average.

Tips for Massachusetts Residents

• 1Massachusetts has a flat income tax of 5% on most income, but a 4% surtax (the 'Millionaire's Tax') applies to annual income exceeding $1 million, effective since 2023.
• 2The millionaire's tax threshold is adjusted annually for inflation, so the exact threshold changes each year — check the current year's figure.
• 3Massachusetts taxes short-term capital gains (assets held less than 1 year) at 12%, while long-term capital gains are taxed at the regular 5% rate (plus the surtax if applicable).
• 4The state offers a generous $1,000 per dependent personal exemption and several credits, including a circuit-breaker property tax credit for seniors.
• 5Massachusetts has a reciprocal agreement: no-tax states aside, if you live in MA and work in a state that also taxes your income, you receive a credit on your MA return.

Frequently Asked Questions