Massachusetts taxes and cost of living (2026)
Massachusetts has a flat 5.00% income tax. A $100,000 salary is worth about $63,012 a year in national buying power after every tax and Massachusetts's prices, #44 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.41M, #45 lowest.
- State income tax
- 5.00%
- Sales tax (avg. combined)
- 6.25%
- Property tax (effective)
- 1.00%
- Cost of living
- 105.8
- US = 100
- Social Security taxed?
- No
- Median home
- $607K
Take-home pay in Massachusetts
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $2,260 | 19.7% | $35,695 | $33,752 |
| $75,000 | $6,020 | $5,738 | $3,500 | 21.4% | $52,243 | $49,399 |
| $100,000 | $10,970 | $7,650 | $4,740 | 24.4% | $66,640 | $63,012 |
| $150,000 | $21,134 | $11,475 | $7,220 | 27.6% | $95,171 | $89,990 |
| $250,000 | $43,304 | $15,514 | $11,879 | 29.3% | $154,303 | $145,904 |
What it takes to retire in Massachusetts
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At MA prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $42,303 | $1,078 | $1,924 | $1.08M |
| $60,000 | $63,454 | $2,617 | $3,886 | $1.65M |
| $80,000 | $84,606 | $4,837 | $6,529 | $2.24M |
| $120,000 | $126,908 | $9,831 | $12,369 | $3.42M |
Massachusetts tax rules at a glance
- Income tax: Massachusetts has a flat 5.00% income tax. 5% on Part B (wages/interest/dividends) and long-term gains. The 4% millionaire surtax applies to all taxable income over $1,107,750 (2026, indexed; $1,083,150 in 2025), modeled here as a 9% bracket. The threshold is the same for single and joint filers (no doubling for married). No standard deduction. Personal exemption $4,400 single / $8,800 MFJ. Federal tax is not deductible.
- Payroll: MA PFML: 0.46% of wages up to $184,500.
- Local income tax: No local income taxes.
- Social Security: Not taxed. Fully exempt.
- Retirement income: Massachusetts and federal government pensions are exempt. Private pensions and IRA/401(k) distributions are taxable at 5%, except contributions already taxed by MA.
- Capital gains: Long-term gains taxed at 5% (short-term 8.5%); the 4% surtax applies above about $1.1M of income.
- Sales tax: 6.25% state rate, 6.25% average with local taxes; groceries exempt.
Compare Massachusetts with
Frequently asked questions
Does Massachusetts have a state income tax?
Massachusetts has a flat 5.00% income tax. 5% on Part B (wages/interest/dividends) and long-term gains. The 4% millionaire surtax applies to all taxable income over $1,107,750 (2026, indexed; $1,083,150 in 2025), modeled here as a 9% bracket. The threshold is the same for single and joint filers (no doubling for married). No standard deduction. Personal exemption $4,400 single / $8,800 MFJ. Federal tax is not deductible.
How much is $100,000 after taxes in Massachusetts?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $66,640 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 24.4% including estimated sales tax.
Does Massachusetts tax Social Security?
No. Massachusetts does not tax Social Security benefits. Fully exempt.
How much do you need to retire in Massachusetts?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.41M in Massachusetts using the 4% rule, after its cost of living and taxes.
Is Massachusetts expensive to live in?
Massachusetts's cost of living index is 105.8, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $607,400 and median rent is $1,848 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).