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Massachusetts Payroll Taxes for Employers (2026): SUTA and State Programs

Last updated: 2026-10-12 · 2026 rates checked against Massachusetts DUA's own pages and the other official sources below

Massachusetts employers pay state unemployment tax (SUTA) on the first $15,000 of each employee's wages in 2026, and new employers pay 2.42% — at most $363.00 per employee for the year. Massachusetts Paid Family & Medical Leave can add to the employer's cost in 2026, depending on headcount (details below). Every Massachusetts employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).

SUTA wage base
$15,000
per employee, 2026
New-employer rate
2.42%
2026
New-employer max
$363.00
SUTA per employee per year
FUTA
0.6%
$42 per employee

What will payroll taxes cost me in Massachusetts?

Enter your headcount and average pay to see the employer's share of Massachusetts and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.

Massachusetts employer payroll tax estimator · 2026

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2.42% is the 2026 new-employer rate. Enter your assigned rate once you have one.
Estimated annual employer payroll taxes
TaxPer year
Massachusetts unemployment (SUTA)
2.42% × first $15,000 per employee
$1,815
Federal unemployment (FUTA)
0.6% × first $7,000 after the full state credit
$210
Social Security (employer half)
6.2% × first $184,500
$15,500
Medicare (employer half)
1.45% of all wages
$3,625
Massachusetts Paid Family & Medical Leave
No employer share at 5 employees (Under 25: 0.46%, all may be withheld)
$0
Total employer taxes$21,150
Per employee$4,230

Assumes every employee earns the average and works in Massachusetts all year. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.

Massachusetts unemployment insurance tax (SUTA) in 2026

2026 taxable wage base
$15,000 per employee (23rd highest of 51)
New-employer rate
2.42%
How the new-employer rate works
New employers (under 3 years) 2.42%; new construction employers 6.08%. New employers are exempt from the COVID-19 Recovery Assessment and EMAC.
Most a new employer pays per employee
$363.00 (2.42% × $15,000)
Experience-rated range (2026, as published)
0.94% to 14.37%. UI rate only; experienced employers also pay the COVID-19 Recovery Assessment (1.118%–17.086% combined in 2026).
2025 average employer rate
2.57% of taxable wages (U.S. DOL)
Employee contribution
None — employer-paid only
Agency
Massachusetts DUA

Same $15,000 wage base as South Dakota. Register with Massachusetts DUA when you first pay wages in Massachusetts; you get an account number for quarterly wage reports and tax payments.

Paid leave, disability and other Massachusetts payroll programs

  • Massachusetts Paid Family & Medical Leave · wages up to $184,50025+ covered individuals: 0.88% total, employer at least 0.42%; Under 25: 0.46%, all may be withheld2026: 0.88% for employers with 25+ covered individuals (family 0.18% may be withheld; medical 0.70% — employee up to 0.28%, employer at least 0.42%). Under 25: 0.46%, all withholdable. For 2027 the employer's 0.42% shifts to the family-leave side; the total stays 0.88%.

Federal payroll taxes every Massachusetts employer pays

  • Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
  • Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
  • FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for Massachusetts unemployment tax paid on time = 0.6%, or $42 per employee.
  • Federal income tax withholding from each paycheck based on the employee's Form W-4.
  • For 2027 the PFML total stays 0.88% but the employer's 0.42% moves from medical to family leave (Chapter 101 of the Acts of 2026).

Next for Massachusetts employers: Massachusetts paycheck calculator (employee withholding) · Massachusetts new hire reporting · Massachusetts payday & final paycheck rules · Massachusetts workers' comp · full payroll cost calculator

Massachusetts payroll tax FAQ

What is the Massachusetts SUTA rate for new employers in 2026?

2.42%. New employers (under 3 years) 2.42%; new construction employers 6.08%. New employers are exempt from the COVID-19 Recovery Assessment and EMAC.

What is the Massachusetts SUTA wage base for 2026?

$15,000 per employee. Once an employee's 2026 wages pass that amount, you stop paying Massachusetts unemployment tax on them for the rest of the year. That is the 23rd highest wage base of the 50 states and DC (the federal FUTA base is $7,000).

Do employees pay unemployment tax in Massachusetts?

No. In Massachusetts unemployment tax is paid only by the employer; it can't be deducted from pay. Only Alaska, New Jersey and Pennsylvania collect an employee share.

What other payroll taxes do Massachusetts employers pay?

Besides unemployment tax: Massachusetts Paid Family & Medical Leave: 2026: 0.88% for employers with 25+ covered individuals (family 0.18% may be withheld; medical 0.70% — employee up to 0.28%, employer at least 0.42%). Under 25: 0.46%, all withholdable. For 2027 the employer's 0.42% shifts to the family-leave side; the total stays 0.88%.

How much FUTA do Massachusetts employers pay?

0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying Massachusetts unemployment tax on time. Massachusetts is not a credit-reduction state for 2026.

How does my Massachusetts SUTA rate change after the first years?

New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, Massachusetts DUA assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 0.94% to 14.37% (UI rate only; experienced employers also pay the COVID-19 Recovery Assessment (1.118%–17.086% combined in 2026)). Use the rate on your annual rate notice. The 2025 average employer rate in Massachusetts was 2.57% of taxable wages.

Official Sources

Figures checked against these sources on 2026-10-12

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General information, not tax advice. Rates change every year; confirm yours on the notice from Massachusetts DUA before filing.