Massachusetts Employee Cost Calculator (2026)
Last updated: October 2026
Massachusetts employers pay federal payroll taxes plus Massachusetts unemployment insurance — 2.42% for new employers on the first $15,000.00 of each employee's wages. Use the calculator to see the total cost of a hire.
Total annual cost
$65,397.00
1.09× salary · $5,397.00 on top of wages
Monthly cost
$5,449.75
Loaded hourly cost
$31.44
Per hour actually worked
$32.70
| Wages | $60,000.00 |
| Social Security (6.2%) | $3,720.00 |
| Medicare (1.45%) | $870.00 |
| FUTA (federal unemployment) | $42.00 |
| State unemployment (SUTA) | $363.00 |
| Paid family leave | $252.00 |
| Workers' comp | $150.00 |
| Total annual cost | $65,397.00 |
Estimates for planning purposes only. Not tax, legal or accounting advice. Confirm your rates with your state agency or a payroll professional.
Massachusetts employer payroll taxes at a glance
| New employer SUTA rate | 2.42%Applies until you qualify for an experience rate under Schedule E; a separate COVID-19 Recovery Assessment is added on top. |
| Experienced employer SUTA range | 0.94% – 14.37% |
| SUTA taxable wage base | $15,000.00Unchanged from 2025. |
| Max SUTA per employee per year | $363.00 |
| Paid family/medical leave program | Yes — employer rate 0.42% |
| State income tax on wages | Yes — employers withhold; not an employer cost |
| State minimum wage | $15.00/hour |
| Source | Massachusetts unemployment insurance agencyVerified 2026-10-11 |
What it costs to hire in Massachusetts
Salary
$40,000.00
Total annual cost
$50,933.00
1.27× salary · SUTA $363.00
Salary
$60,000.00
Total annual cost
$73,197.00
1.22× salary · SUTA $363.00
Salary
$90,000.00
Total annual cost
$106,593.00
1.18× salary · SUTA $363.00
What's different about hiring in Massachusetts
- Massachusetts has a paid family and medical leave program — check whether employer contributions apply to your business size.
- Experienced-employer SUTA rates in Massachusetts can reach 14.37% for businesses with a history of layoffs — retention directly lowers your tax bill.
- Hiring remotely in another state? You generally owe SUTA in the state where the employee works — compare rates in neighboring states below.
Compare neighboring states
| State | New employer rate | Wage base | Max SUTA per employee |
|---|---|---|---|
| Massachusetts | 2.42% | $15,000.00 | $363.00 |
| New York | 4.1% | $17,600.00 | $721.60 |
| Connecticut | 1.9% | $27,000.00 | $513.00 |
| Rhode Island | 1.21% | $30,800.00 | $372.68 |
| Vermont | 1% | $15,400.00 | $154.00 |
| New Hampshire | 1.7% | $14,000.00 | $238.00 |
Hiring outside the US?
Compare the cost of an international contractor or EOR employee before you commit to a US hire.
See how Deel worksPaying vendors and contractors?
Automate accounts payable and payments so contractor costs stay predictable.
See how BILL worksFrequently asked questions
Sources & methodology
- Massachusetts unemployment insurance agency
- SSA — Social Security wage base
- IRS Topic 759 — FUTA
- Patriot Software — state unemployment tax rate chart
Last verified: 2026-10-11
Employee cost calculators for other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Tax rates are approximate — always verify with your state's revenue department.