A $150,000 salary in Massachusetts provides a strong income, but taxes significantly affect take-home pay. After accounting for federal income tax, Massachusetts’ 5% state tax, and payroll taxes, most earners can expect a net income between $105,000 and $110,000 per year, depending on filing status, deductions, and benefits.
Breakdown of Taxes on a $150,000 Salary
Massachusetts uses a flat 5% state income tax, which applies to most wages. Federal taxes follow a progressive system, and payroll taxes fund Social Security and Medicare.
For a single filer earning $150,000, estimated taxes include:
- Federal income tax: Approximately $28,000–$30,000
- Massachusetts state tax (5%): About $7,500
- Payroll taxes (FICA): Around $11,500
This results in an estimated total tax burden of $40,000–$45,000 annually.
Estimated Take-Home Pay
After taxes, a $150,000 salary typically leaves:
- Annual take-home pay: ~$105,000–$110,000
- Monthly net income: ~$8,700–$9,200
Actual take-home pay may be lower or higher depending on:
- Retirement contributions (401(k), IRA)
- Health insurance premiums
- Flexible spending or commuter benefits
- Filing status (single vs. married)
Does the Massachusetts Surtax Apply?
Massachusetts also imposes a 4% surtax on taxable income above $1,083,150. A $150,000 salary is well below this threshold, so the surtax does not apply. Only high-income earners exceeding the threshold pay the additional tax.
Is $150,000 a Comfortable Salary in Massachusetts?
In most parts of the state, $150,000 offers a comfortable to very comfortable lifestyle:
- Boston/Cambridge: Comfortable, but housing costs reduce flexibility
- Suburbs: Strong purchasing power and savings potential
- Central and Western MA: High standard of living
With proper planning, this income supports homeownership, retirement savings, travel, and discretionary spending.
Bottom Line
A $150,000 salary in Massachusetts typically results in over $100,000 in take-home pay, even after taxes. While the state tax rate is relatively simple, federal taxes and payroll deductions make tax planning essential to maximize net income and long-term financial goals.
Earning $150,000 in Massachusetts? Dimov Tax helps professionals optimize take-home pay, reduce tax exposure, and plan smarter for the future. Contact our CPAs today for personalized tax advice.