Massachusetts Bonus Tax Calculator 2025
Step 1: Enter your gross bonus amount in the first field.
Step 2: Select your filing status from the dropdown menu.
Step 3: Enter your year-to-date earnings to ensure accurate Social Security and Medicare calculations.
Step 4: Input your regular annual salary for more precise aggregate method calculations.
Step 5: Choose your preferred calculation method - flat percentage is most common for bonuses paid separately.
Understanding Results: The calculator shows federal withholding, Massachusetts state tax (5%), potential millionaire surtax, Social Security (6.2%), Medicare (1.45%), and additional Medicare tax if applicable. Your net bonus is the amount you'll actually receive after all taxes.
Massachusetts Bonus Tax Rate 2025
Massachusetts taxes bonuses at 5% - the same flat rate as regular income. Massachusetts has a flat income tax rate of 5 percent that applies to all income levels.
Your total bonus taxes include:
- Federal withholding: 22% (for bonuses under $1 million)
- Massachusetts state tax: 5%
- FICA taxes: 7.65% (Social Security + Medicare)
- Total combined rate: About 34.65%
How Massachusetts Bonus Taxes Work
Massachusetts uses a simple flat tax system for bonuses. Your employer withholds 22% for federal taxes when your bonus comes in a separate check. They then add Massachusetts's 5% state rate and FICA taxes.
Massachusetts Flat Tax System
Massachusetts applies a flat 5% tax rate to all income, including bonuses. This means every dollar of your bonus gets taxed at the same rate regardless of your total income level. The state does not have different tax brackets like the federal system.
Massachusetts Bonus Examples - What You'll Actually Get
| Bonus Amount | Federal (22%) | MA State (5%) | Social Security (6.2%) | Medicare (1.45%) | Take-Home |
|---|---|---|---|---|---|
| $1,500 | $330 | $75 | $93 | $21.75 | $980.25 |
| $3,000 | $660 | $150 | $186 | $43.50 | $1,960.50 |
| $5,000 | $1,100 | $250 | $310 | $72.50 | $3,267.50 |
| $10,000 | $2,200 | $500 | $620 | $145 | $6,535 |
| $15,000 | $3,300 | $750 | $930 | $217.50 | $9,802.50 |
Calculations based on 2025 tax rates. Your actual withholding may vary based on your W-4 elections and payroll timing.
Massachusetts vs. Other States - Regional Comparison
| State | State Bonus Tax | Total Rate | Take-Home on $5,000 |
|---|---|---|---|
| Massachusetts | 5% | 34.65% | $3,267.50 |
| New Hampshire | 0% | 29.65% | $3,517.50 |
| Florida | 0% | 29.65% | $3,517.50 |
| Connecticut | Up to 6.99% | Up to 36.64% | $3,168 |
| Rhode Island | Up to 5.99% | Up to 35.64% | $3,218 |
| New York | Up to 10.9% | Up to 40.55% | $2,972.50 |
| California | Up to 13.3% | Up to 42.95% | $2,852.50 |
Massachusetts ranks in the middle for bonus taxation among states. You'll pay more than no-tax states but less than high-tax states like California and New York.
Bonus Tax Strategies for Massachusetts
Massachusetts offers several ways to reduce your bonus tax burden through strategic planning and available deductions.
Timing Your Bonus
Consider timing your bonus payments to maximize tax benefits. Receiving your bonus in January allows you to plan deductions for the entire year. Receiving it in December gives you immediate deduction opportunities.
Massachusetts Deductions
Massachusetts allows several deductions that can reduce your taxable income:
- Student loan interest - Deduct up to $2,500 in student loan interest payments
- 401(k) contributions - Increase contributions to reduce taxable income
- HSA contributions - Maximum $4,150 for individual coverage in 2025
- Charitable contributions - Standard deduction or itemized deductions
- Massachusetts 529 plan - State tax deduction for education savings
Frequently Asked Questions
How are bonuses taxed in Massachusetts?
Massachusetts taxes bonuses at a flat 5% rate, the same as regular income. Your total tax burden includes federal withholding (22%), state tax (5%), and FICA taxes (7.65%), totaling about 34.65%.
What is the Massachusetts bonus tax rate for 2025?
Massachusetts has a flat 5% tax rate on bonuses. This rate applies to all income levels in Massachusetts.
How much will I take home from a $5,000 bonus in Massachusetts?
You'll take home approximately $3,267.50 from a $5,000 bonus after federal (22%), Massachusetts state (5%), and FICA taxes (7.65%).
Does Massachusetts have local taxes on bonuses?
No, Massachusetts has no local income taxes on bonuses or regular income at the city or county level.
Can I reduce my Massachusetts bonus taxes?
Yes, you can reduce taxes by increasing 401(k) contributions, using HSA contributions, and taking advantage of Massachusetts deductions for student loan interest and certain charitable contributions.
Are Massachusetts bonus taxes higher than other states?
Massachusetts's 5% rate is moderate compared to other states. It's higher than states like Florida (0%) but lower than California (up to 13.3%).
When are Massachusetts bonus taxes due?
Taxes are withheld when you receive your bonus. Final tax calculations happen when you file your Massachusetts state tax return by April 15th.
Does Massachusetts tax bonuses differently than regular income?
No, Massachusetts treats bonuses the same as regular income with the same 5% flat tax rate.
What if I work in Massachusetts but live in another state?
You'll pay Massachusetts state taxes on income earned in Massachusetts. You may get credit for these taxes in your home state. Consult a tax professional for specific situations.
How do stock bonuses work in Massachusetts?
Stock bonuses are taxed at the same 5% rate when they vest. The timing depends on your company's vesting schedule and stock option type.