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Taxes
Massachusetts Payroll Taxes 2026: Complete Overview for Employers
Massachusetts flat 5% (+ 4% surtax on income over $1M) income tax, SUI on the first $15,000, and all employer tax obligations explained.
Practical guides on MA payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
Massachusetts has a flat 5% income tax, plus a 4% surtax on income over $1 million, creating an effective 9% top rate.
Massachusetts requires employers to pay terminated employees on the day of discharge — one of the strictest rules in the nation.
Massachusetts’s Paid Family and Medical Leave program requires payroll contributions from both employers and employees.
Massachusetts flat 5% (+ 4% surtax on income over $1M) income tax, SUI on the first $15,000, and all employer tax obligations explained.
Get your EIN, register with Massachusetts, set up withholding, new hire reporting — the complete checklist.
New employer rate 2.42%, experienced range 0.94%–14.37%, wage base $15,000.
Massachusetts minimum wage $15.00/hr. Massachusetts’s minimum wage is $15.00/hr. Tipped employees may be paid $6.75/hr.
IRS classification rules, Massachusetts-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Massachusetts small businesses.