Massachusetts Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Massachusetts state income tax as a freelancer or 1099 contractor. Massachusetts has a flat income tax rate of 5%, plus a 4% surtax on income over $1 million.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,750
Total Tax Owed
$21,141

Summary

Total Income
$75,000
Total Taxes
-$21,141
After-Tax Income
$53,859
Effective Tax Rate(on total income)
28.2%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,285
Q2 (Apr-May)Due June 15
$5,285
Q3 (Jun-Aug)Due September 15
$5,285
Q4 (Sep-Dec)Due January 15 (next year)
$5,285
Each Quarterly Payment
$5,285

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,285. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Massachusetts Tax Overview for Freelancers

Massachusetts has a flat income tax rate of 5%, plus a 4% surtax on income over $1 million. The state also has a PFML payroll tax. Self-employed individuals in Massachusetts pay federal self-employment tax (15.3%) plus federal income tax, and Massachusetts state income tax on their net self-employment earnings.

Flat 5% rate plus 4% millionaire surtaxPFML payroll tax (~0.318%)Strong biotech and education sectorsNo tax on Social Security

Self-Employment Taxes in Massachusetts

If you work as a freelancer or independent contractor in Massachusetts, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Massachusetts state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Massachusetts Income Tax for Freelancers

Massachusetts has a flat income tax rate of 5%, plus a 4% surtax on income over $1 million. The state also has a PFML payroll tax.

Cost of Living for Freelancers in Massachusetts

Massachusetts' cost of living is about 26% above the national average, with Greater Boston being significantly higher. As a freelancer in Massachusetts, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Massachusetts Freelancers

  • Massachusetts' 5% flat rate is moderate, but the millionaire surtax raises the effective rate to 9% on high income
  • Massachusetts' PFML payroll tax adds approximately 0.318% to your deductions
  • Boston's strong biotech, education, and finance sectors offer high salaries
  • Massachusetts does not tax Social Security benefits

Key Massachusetts Tax Features

  • Flat 5% rate plus 4% millionaire surtax
  • PFML payroll tax (~0.318%)
  • Strong biotech and education sectors
  • No tax on Social Security

Model Your Massachusetts Freelance Finances Over Time

This calculator shows your Massachusetts tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Massachusetts with Other States

Connecticut6.99% top rateRhode Island5.99% top rateNew HampshireNo income taxTexasNo income taxFloridaNo income taxTennesseeNo income tax

Frequently Asked Questions

How is self-employment tax calculated in Massachusetts?
Self-employed workers in Massachusetts pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Massachusetts state income tax. Massachusetts has a flat income tax rate of 5%, plus a 4% surtax on income over $1 million. The state also has a PFML payroll tax.
How much will I owe in quarterly taxes as a freelancer in Massachusetts?
Your quarterly estimated tax payment in Massachusetts depends on your total tax liability — including SE tax, federal income tax, and Massachusetts state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Massachusetts freelancers?
Freelancers in Massachusetts can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Massachusetts state taxable income, providing additional state tax savings.
Does Massachusetts have any special taxes for self-employed workers?
Massachusetts does not have a separate self-employment tax. However, your net self-employment income is subject to Massachusetts's regular income tax (5% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Massachusetts?
The decision to form an LLC or S-Corp in Massachusetts depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Massachusetts tax professional for advice specific to your situation.

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