How Much Is $100,000 Taxed in Massachusetts?
Earning a $100,000 salary in Massachusetts is a significant financial milestone, but how much of that do you actually take home? Your final paycheck depends on federal income tax, Massachusetts state tax, and payroll taxes like Social Security and Medicare. Since Massachusetts has a flat income tax rate, your state tax calculation is straightforward, but federal taxes follow a progressive system, meaning different portions of your income are taxed at different rates.
In this article, we will break down the total tax burden on a $100,000 salary in Massachusetts and estimate how much you can expect to take home after all deductions.
Understanding Federal and State Taxes on $100,000
Federal Income Tax
The United States follows a progressive tax system, meaning income is taxed at different rates depending on which bracket it falls into. Below are the 2024 federal tax brackets for single filers:
10% on income up to $11,600
12% on income from $11,601 to $47,150
22% on income from $47,151 to $100,525
Since your total salary is $100,000, your federal income tax is calculated as follows:
10% of the first $11,600 = $1,160
12% of the amount between $11,601 and $47,150 = $4,266
22% of the amount between $47,151 and $100,000 = $11,627
Total federal income tax: $17,053
However, most taxpayers qualify for the standard deduction, which reduces taxable income. In 2024, the standard deduction for single filers is $14,600. After applying this deduction, your taxable income is $85,400, reducing your actual federal tax liability to approximately $14,384.
Massachusetts State Income Tax
Unlike the federal system, Massachusetts has a flat state income tax rate of 5%. This means everyone, regardless of income level, pays the same percentage on taxable earnings.
Massachusetts state tax on $100,000: $5,000
Since the state does not use tax brackets, this calculation remains the same for most filers unless deductions apply.
Payroll Taxes (Social Security and Medicare)
In addition to federal and state taxes, you must also pay FICA taxes, which include:
Social Security Tax: 6.2% on income up to $168,600 → $6,200
Medicare Tax: 1.45% on all earnings → $1,450
Total payroll taxes: $7,650
For those earning over $200,000, an additional 0.9% Medicare surtax applies. However, since we are calculating taxes on $100,000, this surtax does not apply.
Total Tax Breakdown and Take-Home Pay
Now that we have estimated federal, state, and payroll taxes, let’s calculate your final after-tax income.
| Tax Type | Estimated Amount |
|---|---|
| Federal Income Tax | $14,384 |
| Massachusetts State Tax | $5,000 |
| Social Security Tax | $6,200 |
| Medicare Tax | $1,450 |
| Total Taxes | $27,034 |
| After-Tax Income | $72,966 |
After accounting for all deductions, if you earn $100,000 per year in Massachusetts, you will take home approximately $72,966 after taxes.
Other Tax Considerations
1. Deductions and Credits
To reduce your tax liability, you may qualify for certain deductions and credits. Some common tax-saving options include:
401(k) or IRA Contributions: Contributions to a traditional 401(k) or IRA reduce your taxable income, potentially lowering the amount you owe in federal taxes. For 2024, the 401(k) contribution limit is $23,000 for individuals under 50.
Health Savings Accounts (HSA): If you have a high-deductible health plan (HDHP), you can contribute pre-tax income to an HSA, lowering your taxable income.
Tax Credits: If you have children or dependents, you may qualify for the Child Tax Credit (CTC) or Earned Income Tax Credit (EITC), reducing your overall tax burden.
2. Cost of Living in Massachusetts
Massachusetts is known for its high cost of living, particularly in cities like Boston. While a $100,000 salary provides a comfortable lifestyle in many parts of the U.S., in Massachusetts, expenses such as housing, transportation, and healthcare can significantly impact your disposable income.
3. Sales and Other Taxes
Massachusetts does not impose local income taxes, but it does have a 6.25% state sales tax on goods and services. While this does not directly affect your paycheck, it reduces your purchasing power.
Additionally, property taxes in Massachusetts vary by county, with some areas having above-average rates compared to the national median.
How Does Massachusetts Compare to Other States?
Massachusetts’ 5% flat income tax rate is lower than many states with progressive tax systems but higher than states with no state income tax, such as:
Florida
Texas
Nevada
Washington
In states with no income tax, you would keep more of your earnings. However, those states often have higher property taxes, sales taxes, or other fees to compensate for the lost income tax revenue.
Final Thoughts
If you earn $100,000 per year in Massachusetts, you can expect to take home around $72,966 after taxes. The combination of federal, state, and payroll taxes significantly reduces your salary, but tax-saving strategies—such as contributing to retirement accounts—can help lower your taxable income.
While Massachusetts has a moderate state tax rate, the high cost of living may make it challenging to stretch a $100,000 salary as far as in lower-cost states.
Understanding your tax obligations is essential for financial planning and ensuring you are prepared for deductions throughout the year. If you want to optimize your tax savings, consider consulting a tax professional to explore deductions, credits, and investment strategies that can maximize your after-tax income.
