Colorado vs Massachusetts: Business Hiring Cost Comparison (2026)
A $60K employee costs $65,956 in Colorado and $65,949 in Massachusetts. Massachusetts saves $7/year per hire.
Massachusetts is $7 per year cheaper than Colorado for a $60,000 employee in 2026, with total employer costs of $65,949 vs $65,956 including all mandatory payroll taxes.
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At a $60,000 salary
Massachusetts saves $7/employee/year
$65,956 in Colorado vs $65,949 in Massachusetts
Colorado
$65,956
1.1x salary
Massachusetts
$65,949
1.1x salary
Shareable Insights
workers' comp accounts for 3250% of the gap
$234 difference in workers' comp alone between these states.
Cost Breakdown Comparison
Based on $60,000 annual salary
| Cost Component | CO | MA | Diff |
|---|---|---|---|
| Base Salary | $60,000 | $60,000 | — |
| Social Security (6.2%) | $3,720 | $3,720 | — |
| Medicare (1.45%) | $870 | $870 | — |
| FUTA (0.6%) | $42 | $42 | — |
| SUTA (State Unemployment) | $520 | $345 | +$175 |
| Workers' Compensation | $534 | $768 | -$234 |
| State-Mandated Insurance | $270 | $204 | +$66 |
| Total Employer Cost | $65,956 | $65,949 | +$7 |
Tax Rate Comparison
| Rate | Colorado | Massachusetts |
|---|---|---|
| SUTA Rate Range | 0.64% – 5.11% | 0.56% – 8.4% |
| SUTA Typical Rate | 1.7% | 2.3% |
| SUTA Wage Base | $30,600 | $15,000 |
| Workers' Comp Rate | 0.89% | 1.28% |
| State Income Tax | Yes | Yes |
| Paid Family Leave | 0.45% | 0.34% |
What This Means for Employers
For a business hiring at a $60,000 salary, choosing Massachusetts over Colorado saves $7 per employee per year in employer-side payroll costs alone. For a team of 10, that's $72 annually — enough to fund an additional hire or significantly offset operating costs.
The biggest difference comes from workers' compensation rates — Colorado charges 0.89% of payroll vs Massachusetts's 1.28%. Workers' comp rates vary by industry within each state, so high-risk industries (construction, manufacturing) will see larger absolute dollar differences. Federal taxes — Social Security (6.2%), Medicare (1.45%), and FUTA (0.6%) — are identical in both states and account for the majority of employer tax burden.
A notable difference between these states is mandatory benefit programs. Both states require employer contributions to additional benefit programs, though the amounts differ: $270 in Colorado vs $204 in Massachusetts.
These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.
Choosing Between Colorado and Massachusetts?
Cost alone favors Massachusetts: At a $60K salary, you save $7 per employee — a real number that compounds across a growing team. At 20 employees, that's $144/year before factoring in any raises.
When Colorado might still make sense: If your business depends on talent concentrated in Colorado — tech workers, finance professionals, specialized trades — the labor market access may outweigh the payroll cost premium. Remote-friendly roles, however, make the $7/employee savings a strong argument for Massachusetts-based registration.
What this comparison doesn't capture: State income tax (employee side) affects your offer competitiveness — employees in high-tax states need higher gross pay to net the same take-home. Colorado has state income tax; Massachusetts has state income tax. This affects what salary you need to offer to attract equivalent candidates.
State Employment Profiles
Colorado
Colorado's FAMLI paid family leave program (employer pays 0.45%) launched in 2024 and adds to a mid-range employer tax profile, offset by a competitive $30,600 SUTA wage base.
aerospace & defense, outdoor recreation, bioscience & healthcare
Denver's growing tech sector competes with California and Texas for talent; employers often supplement base wages with equity or remote-work flexibility to compete.
Massachusetts
Massachusetts has a high employer tax profile with a $15,000 SUTA wage base and mandatory paid family leave contributions, offset by one of the highest-educated workforces in the country.
biotechnology & life sciences, financial services, higher education
The Route 128 biotech corridor and Cambridge's Kendall Square drive premium wages in life sciences and tech; total employment cost per worker is among the highest in the Northeast.
Employer Environment in Each State
Key factors that shape employer costs beyond the numbers above
- State income tax applies — factor into total compensation packages
- SUTA rate 1.7% (wage base $30,600) — in line with national average
- Competitive workers' comp rate (0.89%) — below-average, favorable for labor-intensive businesses
- State paid family leave program (0.45% employer share) — additional mandatory payroll cost
- State income tax applies — factor into total compensation packages
- SUTA rate 2.3% (wage base $15,000) — in line with national average
- Workers' comp rate 1.28% — near national average, varies by industry classification
- State paid family leave program (0.34% employer share) — additional mandatory payroll cost
Hiring Strategy Takeaway
The $7 per-employee cost gap at $60K salary is primarily driven by workers' compensation rates (CO: 0.89% vs MA: 1.28%). For a growing business, this difference compounds quickly — a 10-person team in Massachusetts costs $72 less annually than the same team in Colorado, before accounting for benefits, overhead, or salary-level differences.
Explore Each State
Cost Comparison at Different Salary Levels
How the gap changes from $30K to $150K
| Salary | CO Total | MA Total | Difference |
|---|---|---|---|
| $30,000 | $33,249 | $33,168 | +$81 |
| $40,000 | $44,158 | $44,095 | +$63 |
| $50,000 | $55,057 | $55,022 | +$35 |
| $60,000 | $65,956 | $65,949 | +$7 |
| $75,000 | $82,305 | $82,340 | -$35 |
| $100,000 | $109,552 | $109,657 | -$105 |
| $125,000 | $136,800 | $136,975 | -$175 |
| $150,000 | $164,047 | $164,292 | -$245 |
Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of CO.
What About Startup Costs?
Hiring is one piece. See what it costs to actually open in these states.
Colorado
Massachusetts
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