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MA · payroll profile

Massachusetts

Everything an out-of-state employer needs before running a Massachusetts payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 9%
Reciprocal agreements
None
SUI wage base 2026
$15,000
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 9%
Withholding certificate M-4
Massachusetts Employee's Withholding Exemption Certificate
Accepts federal Form W-4 No
Convenience-of-the-employer rule No
Nonresident withholding threshold From the first dollar
Withholding required from the first dollar of Massachusetts-source wages; no de minimis day or dollar safe harbor.
Local income taxes No
No local personal income or wage taxes. Massachusetts imposes a state Paid Family and Medical Leave employee contribution.

Reciprocity

States that exempt Massachusetts residents

A Massachusetts resident working in these states files that state's certificate and is taxed only by Massachusetts.

District of Columbia

Unemployment insurance and paid leave

Taxable wage base 2026 $15,000
2025 base was $15,000.
New employer rate 2.42%
Massachusetts employers also pay a separate Employer Medical Assistance Contribution (EMAC) and a COVID-19 Recovery Assessment surcharge in addition to the UI rate.
Experience rate range 0.94% – 14.37%
Experience-rating method reserve ratio
Employee UI contribution No
Paid family / medical leave Yes
Massachusetts PFML 2026 total contribution is 0.88% of eligible wages up to the Social Security wage base. Employees pay up to 0.18% for family leave and up to 0.28% for medical leave (0.46% combined); employers with 25+ covered individuals pay the remaining 0.42% of medical leave.

Employer registration

Tax agency
Massachusetts Department of Revenue
UI agency
Massachusetts Department of Unemployment Assistance (DUA)

Sources

mass.gov · taxfoundation.org · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov · mass.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.