Massachusetts paycheck calculator for hourly and salary pay 2025

Calculating paycheck in Massachusetts

Here’s a step-by-step guide to walk you through the paycheck calculator:

1. Fill in the employee’s details. 

This includes just two items: their name and the state where they live. This will help the tool calculate some of the employee’s local taxes.

2. Add the employee’s pay information.

You should see fields that say pay type, pay rate, hours worked, pay date, and pay period. Start with “pay type” and select hourly or salary from the dropdown menu. 

If the employee is hourly, input their hourly wage under “pay rate” and fill in the number of hours they worked that pay period. If the employee worked more than 40 hours and thus accrued overtime, record 40 here and save the rest for “additional pay.”

If the employee is salaried, both the “pay rate” and “hours worked” fields will disappear. Instead, you’ll need to know how much the employee makes each pay period. You’ll put that into the field labeled “amount.” 

Then select the pay date and the employee’s pay frequency—for example, if you pay them weekly or every two weeks. 

3. Input any additional pay the employee receives.

If the employee is salaried, you will only see two fields: bonus and commission. Fill in those amounts, if applicable.

If the employee is hourly, you should see four fields: overtime worked, bonus, commission, and salary. This is your opportunity to add in any additional pay they should receive this pay period. If the employee earned overtime, input in the number of overtime hours they worked. The tool calculates overtime pay using time and a half.

4. Fill in the employee’s federal tax information.

This includes the employee’s filing status, number of allowances, and additional withholdings. This is information you should be able to glean from the employee’s W-4 form. If you don’t yet have the employee’s W-4, the payroll calculator can fill in tax rates to help you create a semi-accurate paycheck estimate.

5. Fill in the employee’s state tax information.

Again, this includes the employee’s filing status, number of allowances, and additional withholdings. This information can be taken from the employee’s state Form W-4. 

6. Calculate the employee’s paycheck.

To see an estimate of the employee’s earnings for the pay period, select “calculate check.”

Massachusetts income tax rate

Massachusetts has a flat 5.0% individual income tax rate on taxable income for the 2024 tax year. A flat tax means that every resident pays the same rate, regardless of income level. The exception in Massachusetts is that for wages exceeding $1,053,750, there is an additional surtax of 4.0%.

In Massachusetts, there are no additional local income taxes collected by counties or cities.

Massachusetts tax withholdings

An employer must withhold Massachusetts personal income taxes from all Massachusetts residents’ wages for services performed either in or outside of Massachusetts and from nonresident employees’ wages for work performed in Massachusetts. If a nonresident employee doesn’t work in Massachusetts, there is no requirement to withhold Massachusetts income tax, even if they are paid from a Massachusetts office.

Massachusetts income tax withholding is generally applied to the same wages and compensation to which federal withholding applies. Wages that are exempt from federal wage withholding are generally also exempt from Massachusetts wage withholding. 

Interstate motor and rail carrier employers must withhold Massachusetts tax from Massachusetts residents and nonresidents who perform all their regularly assigned duties in Massachusetts. Withholding is also required for payments to nonresident athletes and entertainers who perform in Massachusetts.

In Massachusetts, employers pay the entire cost of state unemployment insurance (SUI) tax that provides benefits to qualified unemployed or underemployed workers. The SUI tax rate in 2024 ranges from 1.023% to 15.999%. Employers may be required to make payments in support of other programs in the state of Massachusetts, including the Employer Medical Assistance Contribution and contributions to the Workforce Training Fund Program.

For specific information on how and where to register your business to submit state withholding and unemployment taxes in Massachusetts, consult our payroll tax map. 

On top of Massachusetts state income taxes, employers also have to consider federal tax withholdings. Money taken out for federal taxes goes toward federal income taxes, Social Security, and Medicare. An employee’s tax bracket depends on their gross income, excluding pre-tax deductions.

Employers are also responsible for making FUTA (Federal Unemployment Tax Act) payments. This is a federal unemployment tax and is separate from Massachusetts’s state unemployment tax. It’s based on the wages you pay to employees but is NOT deducted from employees’ wages. It must also be paid by the business itself.

Opportunities for deductions on Massachusetts paychecks

Aside from standard federal deductions, there are other common payroll deductions that you may need to apply if you offer benefits. Since employers subtract this income before taxes, these deductions can move employees to a lower tax bracket. 

Some common pre-tax deductions include: 

• Health insurance 
• Dental and vision benefits 
• Health savings account (HSA) 
• Wellness benefits
• Disability insurance 
• Life insurance 
• 401(k) contributions 
• Court-ordered garnishments, including child support, alimony, back taxes, and overdue loans 
• Commuter benefits

Note: Our paycheck calculator only accounts for federal and state deductions. Pre-tax deductions do not factor into our paycheck estimates. If you have questions about these deductions, talk to an accountant or payroll specialist.

Frequently asked questions

What are payroll taxes?

Payroll taxes are taxes levied on employers and employees to fund a variety of state and federal programs, including Social Security, Medicare, unemployment benefits, education, defense, construction, and maintenance of infrastructure such as roads, parks, and first responder services. Employers must deduct employee contributions from their paychecks and send tax funds to the proper authorities.

How do I calculate taxes from my paycheck in Massachusetts? 

Calculating withholding is relatively simple in Massachusetts because the state has a flat tax rate. However, follow the steps carefully in Calculating paycheck in Massachusetts to make sure your calculation reflects all the relevant factors, including any allowable personal or standard deduction and the current Massachusetts tax rate schedules, which are both subject to change from year to year. (Also, if you have a new pay rate, you can use this tool as a take-home pay calculator to estimate how much money you’ll actually be depositing each pay period.)

How can QuickBooks make Massachusetts payroll easier?

QuickBooks has multiple features to make Massachusetts payroll easier:

• Automation reduces tedious manual entries and frees up your time.
• QuickBooks calculates, files, and pays your payroll taxes for you — 100% accurate tax calculations guaranteed.
• With tax penalty protection, you’re covered up to $25,000 if you receive a penalty for any reason.
• Your team can get paid fast with same-day direct deposit while you hold onto your cash longer.
• Time tracking can improve timesheet accuracy and streamline approvals.
• Seamless integration of processes can save you hours every week.
• With the Quickbooks Workforce app, your team can track their own hours and view their pay info and W-2s.

Flexible payroll plans for your business

QuickBooks offers flexible payroll plans tailored to your business needs. Whether you want to streamline payday, accurately track time, manage HR tasks, or provide benefits to your team, there's a payroll solution for your Massachusetts business. 

Existing QuickBooks users can easily add payroll functionalities and leverage the QuickBooks Workforce app for enhanced employee management. Plus, with seamless time tracking and invoicing features, QuickBooks empowers you to stay organized and efficient. Explore QuickBooks payroll today.