What is Massachusetts' income tax rate for self-employed workers in 2026?

A flat 5% on most income, plus a 4% surtax on total taxable income over roughly $1,083,150 (the 2026 inflation-adjusted threshold).

Does Massachusetts allow the QBI deduction?

No. Massachusetts does not conform to the federal 20% qualified business income deduction, so your MA taxable income is higher than federal.

Do Massachusetts cities charge local income tax?

No. Boston, Cambridge and every other Massachusetts municipality levy no income tax — Form 1 is your only return.

When are Massachusetts quarterly estimated taxes due?

Form 1-ES payments follow the federal calendar: April 15, June 15, September 15, 2026 and January 15, 2027, required if you expect to owe more than $400.

What is the 4% surtax and does it apply to gig workers?

An extra 4% on taxable income above ~$1.08M, including one-time events like selling a business. Most gig workers never hit it, but a big single-year payout can.

How much should a Massachusetts gig worker set aside for taxes?

Around 28% to 32% of net profit typically covers federal income tax, the 15.3% self-employment tax and the 5% state rate.

Massachusetts Self-Employed Tax Calculator

Federal income tax + 15.3% SE tax + Massachusetts' flat 5% on 2026 1099 income — with the 4% high-income surtax flagged.

Massachusetts keeps it simple at first glance: a flat 5% on most income, and no city income tax anywhere in the state. Two wrinkles matter for gig workers — Massachusetts doesn't allow the federal QBI deduction, and the 4% surtax on income over roughly $1,083,150 can catch a one-time windfall like selling a business or cashing out equity. Short-term capital gains are taxed separately at 8.5%.

Self-employed income & expenses

Estimate federal + SE + state tax for the 2026 tax year in one pass.

Annual 1099 income

Business miles driven

Other business expenses

Self-employed health insurance

Retirement contributions (SEP / Solo 401k)

W-2 income (if any)

Federal tax withheld

Filing status

State

Estimated total tax bill

$12,548

Refund / owed

-$12,548

Effective rate

20.9%

Detailed breakdown

Mileage deduction$5,600

Total business expenses$8,100

Net self-employment income$51,900

Self-employment tax (15.3%)$7,333

½ SE deduction (above-the-line)$3,667

Adjusted gross income$48,233

Taxable income$32,133

Federal income tax$3,608

State tax (est.)$1,607

Quarterly estimated payment$2,961

Marginal rate17.0%

Massachusetts city tax rates for self-employed workers (2026)

Massachusetts charges a flat 5% on most income — plus the 4% 'millionaire tax' surtax on income over roughly $1,083,150 (2026 threshold), which can hit a big one-time business sale. Short-term capital gains are taxed at 8.5%, separate from the flat rate.

Local and state tax rates for self-employed residents of major Massachusetts cities in 2026
City	Local rate	State rate	What gig workers should know
Boston (Suffolk)	No city income tax	5% flat (+4% surtax over ~$1.08M)	Boston has no municipal income tax; self-employed workers file only the state return.
Worcester	No city income tax	5% flat	No local return; state quarterly estimates apply.
Springfield (Hampden)	No city income tax	5% flat	State-only filing for gig workers.
Cambridge (Middlesex)	No city income tax	5% flat	No municipal income tax anywhere in Massachusetts.
Lowell	No city income tax	5% flat	State-only filing; business personal property tax applies to equipment in some towns.

Massachusetts local and state filing deadlines

Q1 Form 1-ESApril 15, 2026
Required if you expect to owe more than $400 of MA tax.
Q2 Form 1-ESJune 15, 2026
Second installment.
Q3 Form 1-ESSeptember 15, 2026
Third installment.
Q4 Form 1-ESJanuary 15, 2027
Final installment for the 2026 year.
MA Form 1 resident returnApril 15, 2027
Automatic 6-month extension if you pay at least 80% of the tax due by April 15.
Q1 federal 1040-ESApril 15, 2026
Covers income earned January 1 – March 31.
Q2 federal 1040-ESJune 15, 2026
Covers April 1 – May 31.
Q3 federal 1040-ESSeptember 15, 2026
Covers June 1 – August 31.
Q4 federal 1040-ESJanuary 15, 2027
Covers September 1 – December 31.

Massachusetts generally follows federal AGI but does NOT allow the federal QBI deduction — add that 20% back when estimating your state bill.
The 4% surtax applies to total taxable income over the threshold, including one-time events like selling a business or a big crypto gain — not just wages.
No Massachusetts city levies an income tax, so your state Form 1 is the only return; the commuter and gig-rule debates are handled at the state level.

See every Massachusetts tax form you need to file — annual, quarterly, and local →

Frequently asked questions

What is Massachusetts' income tax rate for self-employed workers in 2026?: A flat 5% on most income, plus a 4% surtax on total taxable income over roughly $1,083,150 (the 2026 inflation-adjusted threshold).
Does Massachusetts allow the QBI deduction?: No. Massachusetts does not conform to the federal 20% qualified business income deduction, so your MA taxable income is higher than federal.
Do Massachusetts cities charge local income tax?: No. Boston, Cambridge and every other Massachusetts municipality levy no income tax — Form 1 is your only return.
When are Massachusetts quarterly estimated taxes due?: Form 1-ES payments follow the federal calendar: April 15, June 15, September 15, 2026 and January 15, 2027, required if you expect to owe more than $400.
What is the 4% surtax and does it apply to gig workers?: An extra 4% on taxable income above ~$1.08M, including one-time events like selling a business. Most gig workers never hit it, but a big single-year payout can.
How much should a Massachusetts gig worker set aside for taxes?: Around 28% to 32% of net profit typically covers federal income tax, the 15.3% self-employment tax and the 5% state rate.