Massachusetts Employer Payroll Tax Calculator

2026 Massachusetts Payroll Tax Calculator

Massachusetts Payroll Tax Calculator

Estimate Massachusetts take-home pay and employer payroll cost with federal withholding, FICA, the 2026 Circular M percentage method, Form M-4 exemptions, Massachusetts PFML, unemployment insurance, Workforce Training Fund, EMAC, FUTA, optional workers compensation, and employer burden assumptions.

Payroll Inputs

Rates refreshed: May 29, 2026

Pay Setup

Gross pay and frequency

Pay type

Pay frequency

YTD subject wages before this check Used for Social Security, Additional Medicare, FUTA, Massachusetts UI, EMAC, and PFML wage-base caps.

Annual salary

Hourly rate

Regular hours this check

Overtime hours this check

Double-time hours this check

Bonus, commission, or extra pay

Deductions

Amounts withheld from this paycheck

Pre-tax benefits Health, FSA, HSA, or cafeteria deductions assumed to reduce income tax and FICA wages.

Pre-tax retirement Assumed to reduce federal income-tax wages but not FICA wages. Massachusetts Circular M uses a separate capped FICA/Medicare/retirement deduction below.

Post-tax deductions

MA/U.S./RR retirement this check Optional Massachusetts, U.S., or railroad retirement contribution amount used with the $2,000 annual Circular M cap.

YTD MA deduction cap used Enter prior-year-to-date FICA, Medicare, and eligible retirement deductions already applied toward the $2,000 Massachusetts cap.

Federal W-4

IRS 2026 automated method

Federal filing status

W-4 Step 2 checkbox Federal income tax exempt

Step 3 annual credits

Step 4(a) other income

Step 4(b) extra deductions

Step 4(c) extra withholding

Use federal supplemental flat rate for bonus

Massachusetts Withholding

Circular M and Form M-4 inputs

Massachusetts wage allocation Use 100% when wages are fully subject to Massachusetts withholding and UI.

Massachusetts withholding profile Massachusetts withholds on residents' wages and on nonresidents' wages for Massachusetts services. Use allocation for partial Massachusetts work.

Form M-4 exemptions claimed Circular M exemption amount for biweekly payroll is $38 times exemptions plus $131, but $0 if no exemptions are claimed.

Additional MA withholding

Other state withholding credit Use when a non-Massachusetts employer withholds for its own state and Massachusetts withholding is reduced by that amount.

Apply head-of-household reduction

Blindness reductions Circular M allows one blindness reduction, or two if both taxpayer and spouse qualify and the spouse is not otherwise subject to withholding.

Massachusetts income tax exempt Apply 4% surtax above 2026 threshold

Circular M subtracts Social Security, Medicare, and eligible Massachusetts/U.S./railroad retirement contributions up to a $2,000 annual cap, then subtracts the pay-period exemption amount and applies 5.0%. The 2026 percentage method also reflects the 4% surtax above $1,107,750 in annualized taxable income.

Employer Taxes and PFML

UI, PFML, EMAC, FUTA, workers comp, and load

Massachusetts UI employer rate Massachusetts DUA lists the 2026 new-employer rate at 2.42%; construction and established employer rates differ.

Workforce Training Fund rate Flat employer assessment on UI taxable wages for contributory employers.

COVID recovery assessment rate Optional employer-specific rate from the annual DUA rate notice or schedule.

EMAC rate Use 0.34% for many year-six-and-later employers with more than five employees; newer or smaller employers may be exempt.

PFML workforce size Large employers owe the employer medical-leave share; small employers send employee withholdings only unless they elect to contribute.

Employee PFML rate Maximum employee share is 0.28% medical plus 0.18% family leave.

Employer PFML rate Large-employer medical-leave share is 0.42%; ignored when fewer than 25 covered individuals is selected.

Net FUTA rate

Workers comp estimate Optional employer-paid percentage for Massachusetts workers compensation insurance estimates.

Other employer load Optional percentage for benefits, local payroll cost, or other employer burden.

Massachusetts UI, Workforce Training Fund, EMAC, and optional COVID recovery assessment use UI taxable wages, modeled here with a $15,000 annual wage base. PFML contributions use the Social Security taxable maximum.

Employee Withholding

Federal income tax$0.00

Social Security$0.00

Medicare$0.00

Additional Medicare$0.00

Massachusetts withholding$0.00

Massachusetts PFML employee$0.00

Taxable Wage Bases

FIT taxable wages$0.00

FICA taxable wages$0.00

MA withholding wages$0.00

MA Circular M deduction used$0.00

MA allocated gross wages$0.00

Social Security taxed this check$0.00

MA UI taxed this check$0.00

MA PFML taxed this check$0.00

Employer Cost

Employer Social Security$0.00

Employer Medicare$0.00

Massachusetts unemployment insurance$0.00

Workforce Training Fund$0.00

COVID recovery assessment$0.00

EMAC$0.00

Employer PFML$0.00

FUTA$0.00

Workers comp estimate$0.00

Other employer load$0.00

2026 Massachusetts Payroll Rule Snapshot

For Massachusetts payroll estimates

State income tax 5.0% plus surtax Circular M applies 5.0% and includes the 4% surtax above the 2026 annualized threshold of $1,107,750.

M-4 exemptions Pay-period formula Exemption amounts depend on payroll frequency and Form M-4 exemptions; no exemption amount applies when zero exemptions are claimed.

PFML 0.88% total Employee share can reach 0.46%; large employers also owe the 0.42% medical leave employer share.

Employer MA UI UI to $15,000 Default 2.42% new-employer UI rate plus editable Workforce Training Fund, EMAC, and COVID recovery assessment inputs.

Tax or contribution	Who pays	2026 rule used	Calculator treatment
Federal income tax	Employee withholding	IRS Publication 15-T automated percentage method.	Annualizes taxable wages, applies W-4 status, Step 2, Step 3, Step 4(a), Step 4(b), and Step 4(c). Optional bonus mode uses the federal supplemental flat rate.
Massachusetts income tax withholding	Employee withholding	Circular M uses a 5.0% withholding rate, pay-period exemption amounts from Form M-4, a $2,000 annual cap for Social Security, Medicare, and eligible retirement contributions, and a 4% surtax above the 2026 annualized threshold.	Subtracts the capped Circular M deduction, subtracts the applicable M-4 exemption amount, applies 5.0% and optional surtax withholding, applies head-of-household and blindness reductions, and adds extra withholding.
Resident, nonresident, and allocation setup	Employee withholding setup	Massachusetts DOR guidance covers residents' wages, nonresidents' wages for Massachusetts services, and credit-style treatment when a non-Massachusetts employer withholds for its home state.	Lets the user allocate wages to Massachusetts, subtract a user-entered other-state withholding credit, or turn off Massachusetts withholding for no-withholding scenarios.
Massachusetts unemployment insurance	Employer	DUA lists 2026 new-employer rates of 2.42% for non-construction employers and 6.08% for new construction employers. The UI wage base is modeled at $15,000 per employee.	Uses YTD wages before this check for the wage-base cap and applies editable UI, Workforce Training Fund, COVID recovery assessment, and EMAC rates to allocated Massachusetts gross wages.
Massachusetts PFML	Employee and sometimes employer	PFML contributions are capped by the Social Security taxable maximum. For 25+ covered individuals, total contribution is 0.88% of eligible wages; employee withholding can reach 0.46% and employer share is 0.42%.	Uses YTD wages before this check for the Social Security wage-base cap, deducts the employee PFML share from net pay, and adds employer PFML for large-employer scenarios.
Workers comp and other employer load	Employer	Massachusetts generally requires employers to carry workers compensation coverage; rates vary by carrier, classification, payroll, and experience.	Uses optional employer-entered percentages so the payroll tax result can include estimated workers comp, benefits, or other employer burden.

This calculator is a planning estimate, not payroll tax, legal, or accounting advice. Real payroll can differ because of Form M-4 setup, exempt status, nonresident work allocation, another state's withholding, employer-specific DUA rate notices, COVID recovery assessment rates, EMAC status, PFML private-plan exemptions, pre-tax deduction treatment, taxable fringe benefits, workers compensation classifications, and supplemental wage handling.

Primary references: IRS Publication 15-T, IRS Publication 15, Massachusetts DOR withholding tax forms and Circular M, Massachusetts withholding taxes on wages, Massachusetts PFML contribution rates, Massachusetts DUA employer contributions, Massachusetts Employer's Guide to Unemployment Insurance, Massachusetts EMAC guidance, and Massachusetts workers compensation insurance requirements.

Found our Free Massachusetts Employer Payroll Tax Calculator useful? Bookmark and share it.

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

Trusted By

Trusted by 3.4M+ Employees: 23 Years of Service Across Startups to Fortune 500 Enterprises

Join our ever-growing community of satisfied customers today and experience the unparalleled benefits of TimeTrex.

Strength In Numbers

Join The Companies Already Benefiting From TimeTrex

Users

Companies

Years

Time To Clock-In

Start your 30-day free trial!

Experience the Ultimate Workforce Solution and Revolutionize Your Business Today

Saving businesses time and money through better workforce management since 2003.