Massachusetts New Tax Rate, Releases Other Documentation

Massachusetts has released a number of notices and publications, as detailed below.

Tax Rate

Massachusetts announced that effective as of January 1, 2020, the state income tax rate will drop from 5.05% to 5.0%, affecting withholding rates.

For the news page, click here.

View the full release here.

Interest Rate

In Technical Information Release 19-18, Massachusetts has announced a change to its interest rate for over- and underpayments of tax for the first quarter of 2020; the rates are 4% and 6%, respectively.

To review TIR 19-18, follow this link

Withholding Web Guide

Massachusetts has made a number of changes to its withholding website guide as detailed below.

changes. 

  • Under the Tax Cuts and Jobs Act (TCJA), as of January 1, 2020, Revised IRS W-4 reflects changes where withholding calculation is no longer tied to the number of personal exemptions claimed.
  • Paid Family and Medical Leave: As of October 1, 2019, Massachusetts employers are required to remit Paid Family and Medical Leave (“PFML”) contributions on behalf of employees to the Department of Revenue. This Guide does not address employer responsibilities related to PFML. For more information about this program and employer responsibilities, please visit the Department of Family and Medical Leave’s website.
  • Added that casino winnings are subject to withholding if it is required under IRS guidelines.
  • Link for Income Tax Withholding Tables (Circular M) updated to reflect the updated circular. 

To view the full guide, click here.

Circular M Withholding Tables

Massachusetts has released its tax tables for 2020 as part of Circular M.  The revised tax tables reflect the change in the tax rate to 5%. 

To view Circular M, follow this link

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Author

Gerry Nelligan

Gerry Nelligan is a Regulatory Analysis Supervisor at Sovos, leading a team of counsels covering information reporting, including 10-Series IRS reporting, Affordable Care Act (ACA) reporting and Automatic Exchange of Information (AEOI). Gerry received his J.D. from Suffolk University Law School and his B.A. from Providence College. He is a licensed attorney in the state of Massachusetts.
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