PAYROLL TAX RATES
Massachusetts payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Massachusetts, each with its effective date and the agency page it comes from.
Unemployment insurance
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Department of Unemployment Assistance (DUA) (opens in a new tab) | DUA, Employer contributions to unemployment (opens in a new tab) | |
| Taxable wage base | $15,000 | DUA, The Employer's Guide to Unemployment Insurance (PDF) (opens in a new tab) | |
| Wage base set each year | No | M.G.L. c. 151A, s. 14 (General Court) (opens in a new tab) | |
| New employer rate | 2.42%2.42% for the first three years (6.08% in construction), plus the 0.056% Workforce Training Fund contributionSurcharges not includedConstruction 6.08% | DUA, Employer contributions to unemployment (opens in a new tab) | |
| Employee contribution | None | DUA, The Employer's Guide to Unemployment Insurance (PDF) (opens in a new tab) | |
| When an employer becomes liable | One or more employees at least one day a week in 13 weeks of a calendar year (not necessarily consecutive), or $1,500 or more in wages in any calendar quarter. Out-of-state employers: $200 in Massachusetts wages in a quarter; domestic: $1,000 cash wages in a quarter; agricultural: $40,000 in a quarter or 10 employees in 20 weeks. | DUA, Employer contributions to unemployment (opens in a new tab) | |
| Experience rate after | 3 years | DUA, Employer contributions to unemployment (opens in a new tab) | |
| Quarterly report due | Last day of the month after the quarter, by 3 p.m.: April 30, July 31, October 31, January 31 | DUA, Employer contributions to unemployment (opens in a new tab) | |
| FUTA credit reduction | Not yet set | US DOL OUI, FUTA Credit Reductions (opens in a new tab) |
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Massachusetts Department of Revenue (DOR) (opens in a new tab) | DOR, Withholding Tax Forms (opens in a new tab) | |
| Withholding rates | 5% to 9% | DOR, Circular M: Income Tax Withholding Tables at 5.0% Effective January 1, 2026 (Rev. 12/25, PDF) (opens in a new tab) | |
| Supplemental wages | 5% flat rate9%: The part of a supplemental payment by which annualized regular wages plus year-to-date supplemental wages exceed $1,107,750 | DOR, Circular M: Income Tax Withholding Tables at 5.0% Effective January 1, 2026 (Rev. 12/25, PDF) (opens in a new tab) | |
| Reciprocity | None | DOR, Directive 91-4: Multiple State Withholding Requirements (opens in a new tab) | |
| Employee's withholding form | Form M-4 | DOR, Withholding Tax Forms (opens in a new tab) | |
| Local income taxes | No | Constitution of the Commonwealth, Amendments Art. 89 (Home Rule), s. 7 (opens in a new tab) |
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $15.00 | Attorney General's Fair Labor Division, Pay and recordkeeping (opens in a new tab) | |
| Tipped employees, cash wage | $6.75 | Attorney General's Fair Labor Division, Pay and recordkeeping (opens in a new tab) | |
| Rises with inflation | No | Trial Court Law Libraries, Massachusetts law about minimum wage (updated August 28, 2026) (opens in a new tab) | |
| Local rates | One statewide rate ($15.00, M.G.L. c. 151, s. 1); no city or town minimum wages. | Trial Court Law Libraries, Massachusetts law about minimum wage (updated August 28, 2026) (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
Massachusetts Paid Family and Medical Leave (PFML)
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employee | Department of Industrial Accidents, Workers' Compensation Insurance Requirements (opens in a new tab) | |
| State fund | None; private insurers | Department of Industrial Accidents, Workers' Compensation Insurance Requirements (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in Massachusetts
Employer taxes and contributions on one employee's pay in Massachusetts, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
Pay$
Pay frequency
Construction employerUses the construction new employer rate
- Employer taxes and contributions per check
- $257.22
- First check of the year
- Cost per check
- $2,564.91
- Pay included, first check
- Cost per year
- $65,255.40
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,493.92, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Massachusetts unemployment | 2.42% on the first $15,0002.42% for the first three years (6.08% in construction), plus the 0.056% Workforce Training Fund contributionAssessments in the rows below | $55.85None after check 7 | $363.00 | DUA, Employer contributions to unemployment (opens in a new tab); DUA, The Employer's Guide to Unemployment Insurance (PDF) (opens in a new tab) |
| Workforce Training Fund | 0.056% on the first $15,000 | $1.29None after check 7 | $8.40 | DUA, Employer contributions to unemployment (opens in a new tab); DUA, The Employer's Guide to Unemployment Insurance (PDF) (opens in a new tab) |
| Massachusetts Paid Family and Medical Leave (PFML), employer share | 0.42% on the first $184,500Small employers may owe less or none; see Paid family and medical leave above | $9.69 | $252.00 | DFML, Paid Family and Medical Leave employer contribution rates and calculator (updated October 1, 2026) (opens in a new tab) |
| Employer taxes and contributions | $257.22 | $5,255.40 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,564.91 | $65,255.40 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
A new employer pays 2.42% for the first three years (6.08% in construction), plus the 0.056% Workforce Training Fund contribution. The tax applies to the first $15,000 of each employee's wages a year.
Yes: 5% to 9%. Supplemental wages: 5% flat rate.
$15.00 an hour.
Yes: Massachusetts Paid Family and Medical Leave (PFML), 0.88% in total.
WORKLIO HCM
Payroll taxes calculated, deposited and filed in every state
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Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- DUA, Employer contributions to unemployment (opens in a new tab)
- DUA, The Employer's Guide to Unemployment Insurance (PDF) (opens in a new tab)
- M.G.L. c. 151A, s. 14 (General Court) (opens in a new tab)
- US DOL OUI, FUTA Credit Reductions (opens in a new tab)
- DOR, Withholding Tax Forms (opens in a new tab)
- DOR, Circular M: Income Tax Withholding Tables at 5.0% Effective January 1, 2026 (Rev. 12/25, PDF) (opens in a new tab)
- DOR, Directive 91-4: Multiple State Withholding Requirements (opens in a new tab)
- Constitution of the Commonwealth, Amendments Art. 89 (Home Rule), s. 7 (opens in a new tab)
- Attorney General's Fair Labor Division, Pay and recordkeeping (opens in a new tab)
- Trial Court Law Libraries, Massachusetts law about minimum wage (updated August 28, 2026) (opens in a new tab)
- DFML, Paid Family and Medical Leave employer contribution rates and calculator (updated October 1, 2026) (opens in a new tab)
- Department of Industrial Accidents, Workers' Compensation Insurance Requirements (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.