In Massachusetts, the amount of tax deducted from a paycheck primarily includes state income tax, federal income tax, and payroll taxes such as Social Security and Medicare.
Massachusetts State Income Tax
- Massachusetts has a flat state income tax rate of 5% on most taxable income above $8,000 annually
- For income exceeding $1 million, an additional 4% surtax applies, making the top marginal rate 9%
- The state allows a standard deduction of $4,400 for single filers and $8,800 for married filing jointly, which reduces taxable income
- The state income tax is withheld from paychecks based on these rates and deductions, calculated from your taxable income after deductions
Federal Income Tax and Payroll Taxes
- Federal income tax withholding depends on your W-4 form information (marital status, dependents, etc.) and follows progressive federal tax brackets.
- Payroll taxes include Social Security tax at 6.2% and Medicare tax at 1.45%, withheld from every paycheck
- High earners may also owe an additional 0.9% Medicare surtax on income above $200,000 (single) or $250,000 (married filing jointly)
Other Deductions
- Pre-tax deductions such as 401(k) contributions, health savings accounts, and insurance premiums reduce taxable income and thus tax withheld
- Massachusetts does not have local income taxes, so no city or municipal income tax is deducted
Summary
- State income tax: 5% on taxable income up to $1 million; 9% on income above $1 million.
- Federal income tax: Variable, based on federal brackets and W-4.
- Social Security tax: 6.2% on wages up to the annual limit.
- Medicare tax: 1.45% plus possible 0.9% surtax for high earners.
- Standard deduction: $4,400 (single), $8,800 (married filing jointly).
The exact amount deducted from your paycheck depends on your gross pay, filing status, pre-tax deductions, and any additional withholding allowances you claim. Employers use withholding tables and your W-4 information to calculate the precise withholding each pay period
