Massachusetts Releases 2025 Draft Withholding Methods

Draft Massachusetts withholding methods effective Jan. 1, 2025, update the threshold for the 4% surtax on taxable income for high earners, effective since 2023.

The Dec. 2 draft increased the inflation-adjusted threshold for the surtax to $1,083,150, from $1,053,750. If an employee’s taxable income is up to $1,083,150, a 5% withholding rate applies. However, if it is more than $1,083,150, a 9% withholding rate applies to the portion greater than $1,083,150, plus 5% on the remainder.

The draft retained the values of the allowable deductions for heads of households and blind employees. The value of a state allowance at $4,400 ...