In Massachusetts, your employer will withhold money from your paychecks to put toward your state income taxes. You can fill out Form M-4 and give it to your employer to indicate withholding exemptions. Massachusetts has a flat income tax rate of 5%, but charges a 4% surtax on income over $1 million.

The employer-employee relationship exists when the person for whom services are performed has the right to control and direct the details and manner in which the job is to be accomplished. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For those looking to move to Massachusetts, our Massachusetts mortgage guide is a good place to learn about getting a mortgage in the Bay State. It lays out the important information about rates and the different kinds of loans you will be deciding between. In the Bay State, estates are taxed at rates ranging from 0.8 percent to 16 percent, depending on the value of the estate.

Your 2023 Federal Income Tax Comparison

For all of the tax forms we provide, visit our Massachusetts tax forms library or the ‘s tax forms page. An overpayment claimed on a return may be applied as a credit for your next ma state income tax year’s estimated tax or you may request that it be refunded to you. An overpayment may also be offset or intercepted by the Department of Revenue and applied to another liability.

• New for the 2024 filing season, an additional 4% tax on 2023 income over $1 million will be levied, making the highest tax rate in the state 9%.
• The state’s income tax rate is only one of a handful of states that levy a flat rate.
• If there’s no state withholding in your business’s home state, you must withhold and send to us the full amount determined for Massachusetts purposes.
• Employees must report tips from any one job totaling $20 or more in any given month to their employers by the 10th day of the following month.

The Income tax rates and personal allowances in Massachusetts are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, https://www.bookstime.com/ thresholds and allowances included in the Massachusetts Tax Calculator 2020. For the tax year beginning on or after January 1, 2023, the amount of the CFTC is equal to $310 for each such individual.