Massachusetts Approves 4% Surtax on Millionaires in 2023December 15, 2022
Massachusetts voters approved a constitutional amendment imposing an additional 4% tax on taxable income greater than $1 million
At A Glance
- Massachusetts voters approved a constitutional amendment imposing an additional 4% tax on taxable income greater than $1 million.
- This additional tax will apply for tax years beginning on or after January 1, 2023.
- We expect additional guidance from the agency on how to implement the surtax.
Since 1917, Massachusetts has had a flat-rate individual income tax. On November 8, 2022, voters approved amending the state's constitution to enact an additional 4% tax on individual taxable income greater than $1 million.
Beginning in 2023, Massachusetts will impose the additional 4% tax on taxable income greater than $1 million. The agency will adjust the $1 million income level annually to reflect increases in the cost of living by the same method used for federal income tax brackets.
Massachusetts will allocate revenue from the tax collected to public education and public transportation.
We expect additional guidance from the state agency and will communicate updates as they become available.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.
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