1. Find your income exemptions
2. Find your pretax deductions, including 401K, flexible account contributions ... 3. Find your gross income 4. Check the 2023 Massachusetts state tax rate and the rules to calculate state income tax 5. Calculate your state income tax step by step 6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed. Learn more about the in house payroll tax solution for Massachusetts small businesses here. |
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Tax rate used in calculating Massachusetts state tax for year 2023
Need a Better Way to Calculate Massachusetts State Income Tax Withholdings?Click here to view the step by step guide onHow to Calculate Massachusetts State Income Tax Withholdings Automatically How to Create After the Fact Paychecks and Generate the Paystubs Withholding Formula >(Massachusetts Effective 2023)<
Note: Do not withhold tax on employees who claim one or more exemptions while making less than $8,000 annually. a. Multiply the year-to-date state taxable wages (not including current wages) by the b. Add the previous year-to-date FICA contribution computed in Step 5a to the employee's year-to-date contribution to all other retirement systems to obtain the previous year-to-date retirement contribution. Note: If this amount is greater than $2,000, the current retirement deduction amount is zero. Omit Steps 5c through 5e and proceed to Step 6. c. Multiply the current state taxable wages by the employee's FICA rate (e.g., 7.65 percent for social security, 1.45 percent for Medicare-only) to obtain the current FICA contribution. d. Add the current FICA contribution computed in Step 5c to the employee's current contribution to all other retirement systems to obtain the current retirement contribution. e. Add the previous year-to-date retirement contribution computed in Step 5b to the current retirement contribution computed in Step 5d to obtain the new year-to-date retirement contribution. Note: If this amount is greater than $2,000, the current retirement deduction amount is $2,000 minus the previous year-to-date retirement contribution (e.g., $2,000 minus the amount computed in Step 5b). or If this amount is less than or equal to $2,000, the current retirement deduction amount is equal to the current retirement contribution computed in Step 5d. Note: If the employee 's current retirement deduction amount computed in Step 5 is zero, the current adjusted gross biweekly wages is the amount computed in Step 3. a. If the employee claims one exemption only, deduct >$4,400<. or b. If the employee claims more than one exemption, deduct $1,000 times the number of exemptions plus >$3,400.< a. If the employee claims head of household, deduct >$120.00<. b. If the employee and/or spouse is blind, deduct $110.00 for each blind exemption. More Payroll Information for Massachusetts Small Business |