Employee Cost: Massachusetts vs Texas (2026)
Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.
At a $60,000 salary
Texas saves $612/employee/year
$65,949 in Massachusetts vs $65,337 in Texas
Massachusetts
$65,949
1.1x salary
Texas
$65,337
1.09x salary
Cost Breakdown Comparison
Based on $60,000 annual salary
| Cost Component | MA | TX | 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) | $345 | $135 | +$210 |
| Workers' Compensation | $768 | $570 | +$198 |
| State-Mandated Insurance | $204 | $0 | +$204 |
| Total Employer Cost | $65,949 | $65,337 | +$612 |
Tax Rate Comparison
| Rate | Massachusetts | Texas |
|---|---|---|
| SUTA Rate Range | 0.56% – 8.4% | 0.31% – 6.31% |
| SUTA Typical Rate | 2.3% | 1.5% |
| SUTA Wage Base | $15,000 | $9,000 |
| Workers' Comp Rate | 1.28% | 0.95% |
| State Income Tax | Yes | No |
| Paid Family Leave | 0.34% | Not required |
What This Means for Employers
For a business hiring at a $60,000 salary, choosing Texas over Massachusetts saves $612 per employee per year in employer-side payroll costs alone. For a team of 10, that's $6,120 annually.
The biggest difference comes from SUTA (state unemployment tax) — Massachusetts charges 2.3% vs Texas's 1.5%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.
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.
Explore Each State
Cost Comparison at Different Salary Levels
How the gap changes from $30K to $150K
| Salary | MA Total | TX Total | Difference |
|---|---|---|---|
| $30,000 | $33,168 | $32,757 | +$411 |
| $40,000 | $44,095 | $43,617 | +$478 |
| $50,000 | $55,022 | $54,477 | +$545 |
| $60,000 | $65,949 | $65,337 | +$612 |
| $75,000 | $82,340 | $81,627 | +$713 |
| $100,000 | $109,657 | $108,777 | +$880 |
| $125,000 | $136,975 | $135,927 | +$1,048 |
| $150,000 | $164,292 | $163,077 | +$1,215 |
Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of MA.
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