How Much Does It Cost to Hire an Employee in Massachusetts? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in Massachusetts.
Hiring a $60,000/year employee in Massachusetts costs employers approximately $65,949 total in 2026, including $5,949 in mandatory payroll taxes, workers' comp, and state-mandated insurance. That's a 1.1x multiplier on base salary.
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Total Cost at $60K Salary
$65,949
Cost multiplier: 1.1x
SUTA Rate (Mid)
2.3%
Wage base: $15,000
Workers' Comp Rate
1.28%
Has state income tax
Key Insight
For a $60,000 salary in Massachusetts, employers pay $5,949 in mandatory taxes — a 1.1x cost multiplier. Massachusetts's SUTA rate (2.3%) is above the national average of 1.70%.
Model your specific hire
Use our interactive calculator pre-loaded with Massachusetts's tax rates. Adjust salary, benefits, and overhead to get your true cost.
Massachusetts Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.56% – 8.4% |
| SUTA New Employer Rate (typical) | 2.3% ↓ 0.20% from 2025 |
| SUTA Wage Base | $15,000 |
| Workers' Compensation (avg) | 1.28% of payroll ↓ 0.03% from 2025 |
| State Income Tax | Yes |
| Paid Family Leave (employer share) | 0.34% |
2026 Rate Changes in Massachusetts
- ↓ SUTA rate decreased from 2.5% (2025) to 2.3% (2026) — a 0.20% reduction, saving $30 per $60K employee.
- ↓ Workers' comp rate decreased from 1.31% (2025) to 1.28% (2026) — saving approximately $18 per $60K employee per year.
Rate changes reflect Massachusetts #{TaxConstants::TAX_YEAR} announcements vs. 2025 baseline. Workers' comp rates are industry averages and vary by classification code.
Example Employer Costs in Massachusetts
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (MA) | $345 | $345 | $345 |
| Workers' Comp | $512 | $768 | $1,024 |
| State Programs (DI/PFL) | $136 | $204 | $272 |
| Total Employer Taxes | $4,095 | $5,949 | $7,803 |
| Total Cost (salary + taxes) | $44,095 (1.1x) | $65,949 (1.1x) | $87,803 (1.1x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
Tax rates sourced from IRS Publication 15, SSA COLA notices, and Massachusetts Department of Labor. Social Security tax is 6.2% of wages up to $184,500. Medicare is 1.45% with no wage cap. FUTA is 0.6% on the first $7,000 after credit.
How Massachusetts Compares
Massachusetts's typical SUTA rate of 2.3% is above the national average of ~1.70%.
Workers' compensation at 1.28% of payroll is above the national average of ~1.20%.
Massachusetts Employer Environment
Moderate employer costs- 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
Massachusetts is on the costlier end for employers, combining state income tax, above-average SUTA, and mandatory benefit programs. Higher wages are typically required to compete in this market.
Massachusetts Employment Profile
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.
Cost at Different Salary Levels in Massachusetts
Total employer cost including all mandatory payroll taxes
Compare Massachusetts With
Employee Costs in Other States
Hiring Cost by Industry in Massachusetts
Workers' comp rates vary significantly by industry — restaurant and construction workers cost far more to insure than office staff.
Average Wages by Occupation in Massachusetts
BLS OEWS 2024Median annual wages from the Bureau of Labor Statistics — use these as your baseline salary when estimating total hiring cost.
| Occupation Group | Median Annual | Employed |
|---|---|---|
| Management | $146,440 | 332,660 |
| Legal | $128,530 | 33,190 |
| Computer and Mathematical | $126,240 | 156,680 |
| Architecture and Engineering | $103,810 | 78,080 |
| Life, Physical, and Social Science | $98,820 | 76,940 |
| Healthcare Practitioners and Technical | $97,790 | 257,560 |
| Business and Financial Operations | $97,190 | 292,590 |
| Construction and Extraction | $76,180 | 134,770 |
States With Similar Hiring Costs
These states have SUTA rates close to Massachusetts's 2.3% — good for cost benchmarking.
Massachusetts Business Resources
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Simplify Payroll in Massachusetts
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