How Much Tax Is Taken From a Massachusetts Paycheck?

Paycheck deductions are amounts subtracted from gross earnings, resulting in the net pay an individual receives. Understanding these withholdings provides clarity on earnings and aids personal financial planning.

Federal Payroll Tax Withholding

Federal taxes are a component of payroll withholding across the United States, contributing to national programs and services. Federal income tax is withheld based on an individual’s gross income and the information provided on their IRS Form W-4, Employee’s Withholding Certificate. The federal income tax system is progressive, meaning higher income levels are subject to higher tax rates.

Beyond federal income tax, employees contribute to Federal Insurance Contributions Act (FICA) taxes, which fund Social Security and Medicare programs. Social Security tax supports retirement, disability, and survivor benefits. For 2025, employees contribute 6.2% of their wages to Social Security, applied to earnings up to an annual wage base limit of $176,100.

Medicare tax, another FICA component, helps fund hospital insurance for the elderly and disabled. The employee contribution rate for Medicare is 1.45% of all covered earnings, with no wage base limit. Additionally, an Additional Medicare Tax of 0.9% applies to earned income exceeding certain thresholds: $200,000 for single filers and $250,000 for married couples filing jointly.

Massachusetts State Payroll Tax Withholding

Employees in Massachusetts also have state-specific payroll tax withholdings. The Massachusetts state income tax operates with a flat rate of 5% on most types of income for 2025. A surtax of 4% is applied to annual income exceeding $1 million, resulting in a 9% rate for that portion of income.

Taxable income at the state level can be reduced by certain personal exemptions and deductions. Massachusetts does not utilize a standard deduction like the federal system, but taxpayers may qualify for specific exemptions based on their filing status, dependents, or certain expenses. The Massachusetts Form M-4, Employee’s Withholding Exemption Certificate, functions similarly to the federal W-4, allowing employees to specify their withholding preferences for state income tax.

Massachusetts also mandates contributions to the Paid Family and Medical Leave (PFML) program, which provides paid leave benefits for family and medical reasons. For 2025, the total employee contribution rate for PFML is up to 0.46% of eligible wages. This employee contribution is divided into two components: up to 0.28% for medical leave and up to 0.18% for family leave. These contributions are capped annually by the Social Security income limit, which is $176,100 for 2025.

Key Factors Influencing Your Withholding

Several factors determine the amount of taxes withheld from a paycheck. Gross pay, the total earnings before any deductions, influences withholding amounts. As gross pay increases, the amount of income subject to tax also rises, leading to higher withholding for federal and state income taxes. Fluctuations in earnings, such as overtime or bonuses, impact the tax deducted in that pay period.

Elections made on federal Form W-4 and Massachusetts Form M-4 impact the amount of federal and state income tax withheld. These forms allow individuals to specify their filing status, claim dependents, and account for other income or deductions. Claiming fewer allowances or requesting additional withholding can result in more tax being withheld, while claiming more allowances or exemptions can reduce the amount withheld, potentially leading to a larger tax liability at year-end.

Pre-tax deductions reduce an individual’s taxable income, lowering the amount of federal and state income tax withheld. Contributions to retirement accounts (e.g., 401(k), traditional IRA), health insurance premiums, and contributions to Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs) qualify as pre-tax deductions. These are subtracted from gross pay before income taxes are calculated, reducing the income subject to taxation.

Pay frequency affects the per-paycheck withholding amount, though the total annual tax liability remains consistent. For instance, an individual paid weekly will have tax calculated and withheld 52 times a year, while someone paid bi-weekly will have it calculated 26 times. The payroll system annualizes an employee’s wages based on their pay frequency to determine the appropriate withholding for each period, ensuring the correct amount is withheld over the entire year.

Reading Your Pay Stub

A pay stub serves as a detailed record of an employee’s earnings and deductions for a specific pay period. It is organized into sections, including gross pay (total earnings before deductions), net pay (amount received after deductions), current deductions, and year-to-date (YTD) figures. Understanding these sections provides clarity on financial inflows and outflows.

To locate federal tax deductions, look for line items labeled “FIT” or “Federal Income Tax.” Social Security contributions are often listed as “Social Security,” “SS,” or “OASDI,” while Medicare contributions appear as “Medicare” or “Med.” These abbreviations represent the amounts withheld for these federal programs. The current pay period amount shows the deduction for that paycheck, while the year-to-date column reflects the cumulative total withheld since the beginning of the calendar year.

Massachusetts state tax deductions are also itemized on the pay stub. State income tax withholding may be identified as “MA Income Tax” or “MA SIT.” Contributions to the Massachusetts Paid Family and Medical Leave (PFML) program are listed under “MA PFML” or similar nomenclature. It is important to distinguish between the current period’s deductions and the year-to-date totals for each of these state-specific taxes.

Regularly reviewing pay stubs helps ensure the accuracy of withholdings and for monitoring personal finances. Comparing current deductions with previous pay periods and verifying year-to-date totals can help identify any discrepancies or unexpected changes. This review process allows individuals to confirm that the correct taxes are being withheld and to understand how their total earnings translate into their take-home pay.