2026 Tax Tables

Massachusetts Payroll Withholding Calculator (2026)

Massachusetts levies a flat 5.0% income tax on wages and salaries, reduced from 5.05% in 2020 and unchanged since. Employers use the Massachusetts M-4 withholding exemption certificate to collect the number of personal exemptions the employee is claiming. Each exemption reduces the employee's annualized wages by $4,400 before the 5% rate is applied. Note: the 4% surtax on income above $1,000,000 applies on the annual return but is not withheld through payroll.

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State Tax Rate

5.0% flat

State W-4 Form

M-4

Tax Year

2026

Key Facts

  • Flat 5.0% rate on wages (reduced from 5.05% in 2020)
  • M-4 personal exemption: $4,400 per exemption claimed
  • The 4% surtax on income over $1M applies on returns, not payroll withholding
  • No local income tax in Massachusetts

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Massachusetts Withholding — Frequently Asked Questions

What is the Massachusetts income tax rate for 2026?

Massachusetts levies a flat 5.0% income tax on wages. The rate was reduced from 5.05% to 5.0% effective January 1, 2020, and has remained at 5.0% since.

What is the M-4 exemption value for Massachusetts withholding?

Each personal exemption claimed on the Massachusetts M-4 form reduces the employee's annualized wages by $4,400 before applying the 5% rate. Employees typically claim one exemption for themselves and may claim additional exemptions for dependents.

Does the Massachusetts millionaire surtax affect payroll withholding?

No. The 4% surtax on income above $1,000,000 (approved by voters in 2022) is assessed on the annual tax return, not through payroll withholding. Standard payroll withholding uses the flat 5.0% rate only.

Does Massachusetts use the federal W-4?

No. Massachusetts requires its own M-4 Withholding Exemption Certificate. The federal W-4 and Massachusetts M-4 are separate forms.