Massachusetts payroll taxes
Every tax withheld from a Massachusetts paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: teamed.global, mass.gov, mass.gov, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Massachusetts SUTA | — | 2.48% (new) | $15,000 |
| Paid Family and Medical Leave | 0.46% | 0.42% | $184,500 |
| Massachusetts income tax | 5% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
Massachusetts charges new employers 2.48% on the first $15,000 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 1.17% to 17.14%. Schedule E. UI is 0.94%-5.24% for positive-rated and 7.03%-14.37% for negative-rated employers, plus COVID assessment and WTF. New employer rate is 2.42% UI + 0.056% WTF (construction 6.08%). New employers pay no COVID assessment.
Workforce Training Fund 0.056% and COVID-19 Recovery Assessment (0.178%-2.716%, experienced employers only), both included in the rates. EMAC is 0.12%-0.34% from year 4 for employers with 6+ employees. PFML is 0.88% total (separate program).
Register and file with the Massachusetts unemployment tax agency.
Paid leave and disability programs
- Paid Family and Medical Leave: employees pay 0.46%, employers pay 0.42% on wages up to $184,500. 2026 total 0.88% for employers with 25+ covered individuals: employee up to 0.46% (family 0.18% + 40% of medical 0.70% = 0.28%), employer at least 0.42%. Employers <25: total 0.46%, all may be withheld, no employer share. 2027 (Ch. 101 of 2026) swaps family/medical allocation but totals/shares unchanged.
Income tax withholding
Massachusetts has a flat income tax of 5% on taxable income.
Frequently asked questions
- What payroll taxes do employers pay in Massachusetts?
- Social Security, Medicare, federal unemployment (FUTA) and Massachusetts unemployment insurance (SUTA), plus Paid Family and Medical Leave.
- What is the Massachusetts SUTA wage base for 2026?
- $15,000 per employee.
- Does Massachusetts require state income tax withholding?
- Yes. Employers withhold Massachusetts income tax based on the employee's state withholding certificate or federal W-4.