Massachusetts typically takes 20% to 30% of a paycheck once state income tax, federal tax, and mandatory payroll taxes are combined. The exact amount depends on your income, filing status, benefits, and withholding elections, but Massachusetts’ portion itself is relatively straightforward compared to many states.
This guide explains how Massachusetts calculates paycheck withholding, what taxes are included, and how to estimate (and potentially reduce) what comes out of your pay.
What Taxes Are Withheld From a Massachusetts Paycheck?
Massachusetts paychecks include three main types of tax withholding, each serving a different purpose. These are:
Massachusetts State Income Tax
Massachusetts uses a flat 5% state income tax rate on most wages. This means:
- The rate does not increase as income rises
- Wages, bonuses, commissions, and overtime are all taxed
- There are no local or city income taxes
Most employees will see exactly 5% of taxable wages withheld for Massachusetts income tax.
Federal Income Tax
Federal income tax is progressive, meaning different portions of your income are taxed at different rates. Your employer calculates withholding based on:
- Your W-4 elections
- Filing status
- Income level
- Dependents
- Pre-tax benefits
Federal withholding is often the largest portion of taxes taken out of a paycheck.
Payroll Taxes (FICA)
Payroll taxes are mandatory nationwide and apply regardless of state.
High earners may also pay an additional 0.9% Medicare tax on wages above $200,000.
How Much Does Massachusetts Take Out of a Paycheck Overall?
When all taxes are combined, most Massachusetts employees see roughly one-quarter of their paycheck withheld. Below is the typical total withholding ranges:
Example: $75,000 Annual Salary
- Gross monthly pay: $6,250
- Estimated taxes withheld: $1,500–$1,800
- Net take-home pay: $4,400–$4,700 per month
Your personal take-home pay may differ based on:
- Retirement contributions
- Health insurance premiums
- Filing status changes
- Bonus or equity compensation
Why Massachusetts Paycheck Taxes Are Simpler Than Other States
Massachusetts is considered moderately tax-friendly for wage earners due to its predictable structure. Unlike states such as New York or Pennsylvania, Massachusetts does not allow local or municipal income taxes. Whether you live in Boston or Springfield, the state rate remains 5%.
And the state tax is flat:
- High earners do not face higher marginal rates on wages
- Paycheck planning is more predictable
- Withholding errors are easier to identify
Note: A separate 4% surtax applies to income over $1 million, but this typically affects investment income, not standard paychecks.
How Can You Reduce the Amount Taken Out of Your Paycheck?
While taxes can’t be avoided, withholding can be optimized. Here are the common legal ways to lower withholding:
- Contribute to pre-tax retirement accounts (401(k), 403(b))
- Use pre-tax health benefits
- Adjust allowances on MA Form M-4
- Review W-4 elections after life changes
- Plan bonuses and RSUs strategically
Over-withholding results in a large refund, while under-withholding can lead to penalties and surprise tax bills, both signs of poor tax planning.
Frequently Asked Questions
How much is a $100,000 salary in Massachusetts after taxes?
A $100,000 salary in Massachusetts typically results in $68,000–$73,000 in take-home pay after federal income tax, the 5% Massachusetts state tax, and payroll taxes. The exact amount depends on filing status, benefits, and withholding elections.
How much is $70,000 after taxes in Massachusetts?
A $70,000 salary in Massachusetts usually leaves $50,000–$55,000 after taxes. This estimate includes federal income tax, the flat 5% Massachusetts state tax, and Social Security and Medicare. Retirement contributions or health benefits can increase take-home pay.
How do I adjust my MA withholdings?
You can adjust Massachusetts withholding by submitting an updated MA Form M-4 to your employer. This form lets you change allowances, claim exemptions, or request additional withholding. You can update it anytime after life events like marriage, income changes, or dependents.
Is Massachusetts a mandatory withholding state?
Yes. Massachusetts is a mandatory withholding state. Employers are required to withhold state income tax from employee wages unless the employee qualifies for a valid exemption. Most wage earners will automatically have the 5% state tax withheld each pay period.
Need Help Reducing Your Paycheck Taxes?
If you’re unsure whether Massachusetts is taking too much, or too little, from your paycheck, expert guidance can help you keep more of what you earn.
Dimov Tax works with employees, high earners, and business owners to:
- Optimize paycheck and bonus withholding
- Reduce tax exposure legally
- Prevent underpayment penalties
- Build year-round tax strategies
Schedule a consultation with Dimov Tax today to take control of your take-home pay.