A draft of Massachusetts’s 2026 withholding methods, containing a change to the threshold for the surtax on high earners, was released Dec. 12 by the state revenue department.
The draft increases the surtax threshold to $1,107,750 of annual income, up from $1,083,150. The surtax is 4%, meaning wages above the threshold are subject to a 9% instead of 5% tax rate. The example of how to take into account the surtax when withholding from supplemental payments was also updated.
The percentage method and wage-bracket tables were otherwise unchanged from the versions effective Jan. 1, 2025.
(Corrects surtax threshold.)
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