Massachusetts flat income tax — 5% on all income
Massachusetts has a flat state income tax rate of 5% on all taxable income for most workers. Every dollar you earn is taxed at the same 5% rate regardless of income level. Massachusetts also offers a personal exemption of $4,400 for single filers and $8,800 for married filing jointly (2026), which reduces your taxable income.
A worker earning $75,000/year in Massachusetts pays approximately $3,530 in state income tax (after the $4,400 personal exemption). Take-home is approximately $56,250 per year. Compared to neighboring New Hampshire (no income tax), a Massachusetts worker earning $75,000 pays about $3,530 more per year in state taxes.
Massachusetts millionaire's surtax — 4% on income over $1 million
In 2023, Massachusetts voters approved a 4% surtax on income over $1 million (Question 1). This means high earners pay 9% total on income above $1 million (5% regular + 4% surtax). This does not affect most workers — it only applies to income over $1,000,000.
The millionaire's surtax raised approximately $1.8 billion in its first year and funds education and transportation. For the vast majority of Massachusetts workers earning under $1 million, the tax rate remains a flat 5% on all income.
Massachusetts vs New Hampshire — the border effect
Massachusetts and New Hampshire share a border, and many workers choose to live in NH and commute to Massachusetts to avoid MA's 5% income tax. On a $75,000 salary, this saves approximately $3,530/year. However, Massachusetts attempted to tax remote workers who previously worked in MA offices — the "Massachusetts Rule" was challenged during COVID.
NH has no state income tax on wages but has higher property taxes. For renters, living in NH while working in MA is a clear financial win. For homeowners, the calculation depends on property values and local property tax rates in each state.