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How Massachusetts withholding works in 2026
Massachusetts withholds at 5.0% (Circular M, effective January 1, 2026). Employers either use the Circular M tables or the percentage method: take pay for the period, subtract the Social Security, Medicare and similar contributions you pay (up to $2,000 a year), subtract the exemption amount from your M-4, and multiply by 5%. The annual exemption amount is $1,000 times the exemptions you claim plus $3,400.
For example, a single employee earning $65,000 who claims one exemption has about ($65,000 − $4,400 − $2,000) × 5% = $2,930 withheld for the year. Each additional exemption lowers that by $50. The 4% surtax on income above $1,107,750 is not part of regular withholding. It is figured on your return.
Massachusetts has its own form: the M-4
New employees are expected to complete both the federal W-4 and the Massachusetts M-4, and employers rely on the M-4 to work out Massachusetts withholding. You can raise your exemptions on a new M-4 at any time. If the number decreases, you must file a new one within 10 days. If you have more than one job, you may claim exemptions only with your principal employer, and you can ask that employer to withhold extra to cover income that has no withholding.
How to fill out the M-4
Line 1 is your personal exemption: enter 1, or 2 if you are 65 or older. Line 2 is for a spouse: enter 4 if you are married and your spouse's exemption is allowed (5 if your spouse is 65 or older). Line 3 is the number of dependents you can claim, plus 1 if any dependent will be under 12 at year end. Line 4 is the total of Lines 1 to 3.
Check box A if you will file as head of household, box B if you are blind, and box C if your spouse is blind and not subject to withholding. Head of household and blindness lower withholding by a small fixed amount. Box D is for a full-time student with seasonal, part-time or temporary work whose estimated annual income will not exceed $8,000; employers should not withhold if it is checked.
Massachusetts W-4 FAQ
What is the Massachusetts withholding rate for 2026?+
5.0%. Massachusetts Circular M, effective January 1, 2026, uses a 5% rate applied after exemptions. A 4% surtax applies on the return to taxable income above $1,107,750.
Do I need an M-4 and a W-4 in Massachusetts?+
Yes. New employees are expected to complete both the federal W-4 and the Massachusetts M-4. Employers use the M-4 to determine Massachusetts withholding.
How many exemptions should I claim on the M-4?+
Enter 1 for yourself (2 if 65 or older), 4 for a spouse whose exemption is allowed (5 if 65 or older), and the number of dependents, plus 1 if any dependent will be under 12. Add them for Line 4.
How much is a Massachusetts exemption worth?+
In the percentage method each exemption reduces wages by $1,000 a year, which lowers withholding by about $50 at 5%. A $3,400 base is added to the exemption amount for everyone who files an M-4.
When do I need a new M-4?+
You can file a new M-4 any time your exemptions increase. If they decrease, file a new one within 10 days.
Can I have no Massachusetts tax withheld?+
A full-time student with seasonal, part-time or temporary work whose estimated annual income will not exceed $8,000 can check box D on the M-4, and employers should not withhold. Massachusetts also doesn't require withholding if no federal income tax withholding is required.
Start with your federal W-4
Your Massachusetts withholding follows your pay, but your W-4 is federal. Get the exact lines to fill in.
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