Bonus Tax Calculator — Massachusetts (2026)
Bonuses in Massachusetts are taxed as supplemental wages: the employer usually withholds a flat 22% federal, plus 7.65% FICA and Massachusetts state withholding. Withholding is not the final tax; the true cost is settled on your return. Enter your bonus to see both. Massachusetts uses a flat personal income tax of 5.00% applied to taxable income after a state standard deduction of $0.
Massachusetts Bonus Tax Calculator
The gross bonus before withholding.
Percentage method vs aggregate method
Under the percentage method the bonus is separated from regular pay and hit with the flat 22% federal rate (37% above $1 million of supplemental wages in a year). Under the aggregate method the employer combines the bonus with your normal check and withholds at your marginal rate — which can temporarily withhold far more than 22%.
Either way the bonus is ordinary income. If your marginal federal bracket is 24% or higher, the 22% flat withholding leaves you short at filing time; if you are in the 12% bracket, you are over-withheld and get it back as a refund.
The Massachusetts layer on bonuses
Massachusetts taxes bonus income at the same flat rate as salary — up to 5.00%. A $10,000 bonus therefore carries roughly $500 of Massachusetts tax at the top rate, on top of federal and FICA.
Massachusetts has no separate city or county income tax, so the state figure above is the full sub-federal income tax you pay.
Reducing the tax on a Boston bonus
Deferring part of the bonus into a 401(k) or HSA cuts federal and Massachusetts income tax immediately, though FICA still applies. Some employers allow a separate bonus deferral election — ask payroll before the payment date, not after.
Timing matters too: pushing a bonus into January shifts the tax year, useful if this year included unusually high income from biotech work or an equity event.
Local and payroll taxes Massachusetts adds on top
Paid Family and Medical Leave takes about 0.46% of wages from the employee share. That deduction sits outside the federal and state income tax lines, so build it into your own budget on top of the numbers above.
Massachusetts has no separate city or county income tax, so the state figure above is the full sub-federal income tax you pay.
Bonuses are wages, so every local layer that applies to your regular Massachusetts paycheck applies to the bonus too — which is why a supplemental payment often nets a smaller share than your salary does.
Working across a state line from Massachusetts
Massachusetts has no income-tax reciprocity agreements, so if you live here and work across a state line you generally file a nonresident return in the work state and claim a credit at home to avoid double taxation.
Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Boston resident spending part of the year at a client site in New Hampshire may owe a nonresident return there. Keep a day-count log if you split time between states.
The rest of your Massachusetts tax bill
Massachusetts charges a 6.25% state sales tax, homeowners pay an average effective property tax of 1.14% of market value, and the minimum wage in force during 2026 is $15.00 an hour.
6.25% statewide, with clothing under $175 exempt.
Income tax is only one part of a state's take. Massachusetts recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. Massachusetts exempts Social Security and public pensions; private pensions and 401(k) withdrawals are taxed at 5%.
Massachusetts vs New Hampshire on the same salary
On a $75,000 salary, a single filer keeps about $57,843 a year in Massachusetts against roughly $61,593 in New Hampshire — a difference of $3,750, or $313 a month.
Effective combined rates are 22.9% in Massachusetts and 17.9% in New Hampshire. Set that gap against living costs: index 148 here versus 109 there, with property tax at 1.14% and 1.93% respectively.
Massachusetts income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 and up | 5.00% |