{"place":"Massachusetts","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/massachusetts","state":{"code":"MA","name":"Massachusetts","slug":"massachusetts","incomeTax":{"type":"flat","flatRate2026":5,"lowestRate2026":null,"topRate2026":9,"topRateStartsSingle":1107750,"notes":"Most income is taxed at a flat 5%. For 2026, a 4% surtax applies to taxable income over $1,107,750 (the same threshold for every filing status), for a 9% top marginal rate. Short-term capital gains are taxed at 8.5%, and long-term gains on collectibles at 12% (after a 50% deduction).","source":"https://www.mass.gov/info-details/tax-rates"},"estimatedTax":{"form":"Form 1-ES","rule":"Residents and nonresidents must pay estimated tax if they expect to owe more than $400 on income not subject to withholding. The 4% surtax must be included.","schedule":"Same dates as federal (April 15, June 15, Sept. 15, 2026, and Jan. 15, 2027).","source":"https://www.mass.gov/doc/2026-form-1-es-estimated-tax-payment-vouchers-instructions-and-worksheets/download"},"minimumWage2026":{"standard":15,"tippedCash":6.75,"tipCreditAllowed":true,"notes":"The $15.00 rate has been in place since 2023 (M.G.L. c. 151, § 1), with no increase in 2026. The cash wage for tipped service employees is $6.75 (§ 7).","source":"https://www.mass.gov/info-details/massachusetts-law-about-minimum-wage"},"soleProprietorTaxes":[],"contractorLaws":[{"name":"Independent Contractor Law ABC test (M.G.L. c. 149, § 148B)","summary":"Anyone performing services is an employee for wage-and-hour purposes unless the business proves all three parts: the worker is free from control, the work is outside the business's usual course, and the worker runs an independently established business of the same kind. Misclassification can bring criminal and civil penalties.","source":"https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section148b"},{"name":"Attorney General settlement with Uber and Lyft (2024)","summary":"Rideshare drivers must earn at least $32.50 per hour of engaged time (en route to and carrying riders), not counting tips. The floor rises each January by the lower of 3% or inflation. The settlement also requires paid sick leave, occupational accident insurance, and a health stipend.","source":"https://www.mass.gov/doc/attorney-general-and-uberlyft-settlement-agreement/download"},{"name":"Rideshare driver unionization law (M.G.L. c. 150F, 2024 ballot Question 3)","summary":"Rideshare drivers who are independent contractors can bargain collectively. On May 22, 2026, the state Department of Labor Relations certified the App Drivers Union (SEIU/IAM) as the industry-wide union for Uber, Lyft, and other covered rideshare companies. Under M.G.L. c. 150F, § 6, agreements must be approved by a majority of voting drivers and then by the Secretary of Labor.","source":"https://www.mass.gov/info-details/rideshare-driver-unionization"}],"notes":"Massachusetts has no state gross receipts tax on sole proprietors. LLCs, including single-member LLCs, pay a $500 annual report filing fee to the Secretary of the Commonwealth (M.G.L. c. 156C, § 12)."},"stateRetirementProgram":{"state":"Massachusetts","code":"MA","programName":"Massachusetts Defined Contribution CORE Plan","status":"active","employerMandate":null,"mandateMin":null,"keyDates":"Signed into law 2012; launched October 27, 2017 as the first state-facilitated multiple-employer plan in the country.","covers1099":false,"selfEnroll":"n/a","sourceUrl":"https://cri.georgetown.edu/states","note":"Not an auto-IRA and not a mandate. A voluntary 401(k) multiple-employer plan open to Massachusetts nonprofit employers only (historically 20 or fewer employees; a reported expansion to 100 in the FY26 budget is sourced only to a commercial compliance page — unverified). Georgetown CRI counts it among the 17 open state programs.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/massachusetts/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/massachusetts/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/massachusetts/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/massachusetts/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/massachusetts/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/massachusetts/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/massachusetts/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}