Massachusetts Salary Paycheck Calculator

Massachusetts Taxes: What You Need to Know 

Understanding your paycheck in Massachusetts involves navigating through various federal, state, and local tax withholdings, as well as insurance contributions and pre-tax deductions. Here’s a comprehensive overview of all your taxes: 

Federal, State, and Local Tax Withholding 

Massachusetts employs a flat income tax rate, but changes have introduced a surtax for high earners. Here’s what you need to know: 

• Federal Income Tax: Withheld based on your W-4 form and federal tax brackets. 

• Massachusetts State Income Tax:   

• • 5% flat rate on annual gross income over $8,000 

• • New for 2024: 9% surtax on income above $1,053,750 annually 
• Local Tax: Massachusetts does not have additional local income taxes. 

FICA and State Insurance Taxes 

• Social Security: 6.2% in wages up to $168,600. 

• Medicare: 1.45% on all wages, an additional 0.9% on Medicare tax on wages over $200,000. 

Massachusetts Paid Family and Medical Leave (PFML) 

• Combined contributions of 0.88% of eligible wages 
• 0.70% for Medical Leave Insurance (MLI) 
• 0.18% for Family Leave Insurance (FLI) 

Pre-Tax Deductions 

Pre-tax deductions reduce your taxable income. Common deductions include: 

• Medical Insurance: Premiums for employer-sponsored health plans. 

• 401(k) Contributions:  

• Standard Limit: $23,000 

• Catch-up Limit (age 50+): Additional $7,500 

• Health Care Spendings Account (HCSA): Up to $3,050 

• Dependent Care Assistance Program (DCAP): Up to $5,000 

Tax Rates and Brackets for 2024 

Key Changes for 2024 

• Massachusetts Surtax: Employers are now required to withhold the 9% tax on income above $1,053,750. 

• Federal Standard Deduction: Increased to $29,200 for married filing jointly and $14,600 for single filers. 

• Massachusetts Minimum Wage: Increased to $15.00 per hour. 

• Social Security Wage Base: Increased to $168,600. 

• 401(k) Contributions Limits: Increased to $23,000 ($30,500 for those 50 and older). 

Important Reminders 

• New hires must complete Form I-9 and Form W-4. 

• Employees claiming “Exempt” status must file a new W-4 annually by February 15. 

• The standard mileage rate for business use of a personal vehicle is 67¢ per mile for 2024. 

• There will be 26 pay periods in 2024. 

Understanding these components of your paycheck can help you manage your finances and plan your tax obligations.  

Median Household Income in Massachusetts 

Massachusetts boasts one of the highest median household incomes in the U.S., driven by its thriving economy, leading industries, and high educational attainment. 

According to the most recent data from the U.S. Census Bureau, the median household income in Massachusetts for 2023 is $106,500, adjusted for inflation using CPI-U-R (Consumer Price Index for all Urban Consumers). This number represents the state’s continued growth and prosperity. 

Several factors, including the job market in technology, healthcare, and education sectors, influence the state’s high household income. Cities like Boston, Cambridge, and Worcester lead the way, hosting top employers and offering competitive salaries. 

The delicate balance between high wages and elevated living expenses makes Massachusetts an attractive but expensive place to reside. For context, Dover, Massachusetts, has the highest median household income in the state, exceeding $250,000 annually. 

Massachusetts’ median household income is a key indicator of the economic well-being of its residents, helping individuals, families, and policymakers better understand the financial pressures and opportunities in the region. 

Massachusetts Tax Brackets 2024 

Massachusetts has a unique tax system comprising of several key components. The state operates with a graduated income tax rate, corporate tax rate, and a sales tax rate.  

There are no local sales taxes, but Massachusetts imposes specific taxes on property, gasoline, and cigarettes. Below is a breakdown of the main taxes applicable in 2024. 

1. Individual Income Tax Rates for 2024 

Massachusetts uses a graduated individual income tax system. Here’s how it works: 

• The individual income tax ranges from 5.00% to 9.00%. 

• The state ranks 4th for individual income tax collections per capita, collecting $2,817. 

2. Corporate Income Tax Rate 

Businesses in Massachusetts face a corporate tax rate of 8.00%, placing the state in the 46th in the State Business Tax Climate Index. 

3. Sales Tax Rates 

The state sales tax rate is 6.25%, and there is no local sales tax. State and local sales tax collections per capita are $1,114. 

4. Property Tax 

The effective property tax rate is 1.04% of the owner-occupied housing value. Massachusetts ranks 7th for state and local property tax collections, collecting $2,081 per capita. 

5. Additional Taxes 

 The gas tax rate is 27.37 cents per gallon, and the cigarette tax is $3.51 per pack. 

2024 Massachusetts Tax Brackets Table 

Additional Information 

• Per Capita Tax Collections: Massachusetts collects $8,110 in state and local taxes per capita. 

• State Debt: The state has $14,534 in state and local debt per capita. 

• Pension Fund: Massachusetts maintains a 69% funded ratio for its public pension plans. 

This detailed table covers Massachusetts tax information for individuals, corporations, and general sales taxes, allowing residents and businesses to plan accordingly for 2024. The tax code is multifaceted and may impact both personal finances and business operations. 

For further details, see the Massachusetts Comptroller’s report for FY 2024 here. 

Wrapping It Up 

The Massachusetts Paycheck Calculator is a practical tool for employees across the state. It accounts for federal and state taxes, as well as common deductions like Social Security and Medicare, it provides a close approximation of what employees can expect to see on their paychecks. While not a substitute for professional financial advice, this calculator offers a useful starting point for budgeting and financial planning. 

Whether you’re starting a new job, considering a role change, or want to understand your current compensation better, the Massachusetts Paycheck Calculator can help in your quest to untangle the complexities of payroll calculations.