The Massachusetts Department of Revenue updated 830 CMR 62B.2.1, Withholding of Taxes on Wages and Other Payments, effective June 5, 2026.
The most significant change affects withholding agents paying compensation to performers. The updated regulation adds a new sentence providing that when a withholding agent’s gross payment to an individual performer exceeds the taxable income threshold under M.G.L. c. 62, § 4(d), the applicable rate for amounts above that threshold is the Part B rate plus an additional 4%. This reflects Massachusetts’s income surtax on taxable income exceeding $1,000,000 (inflation-adjusted).
The update also makes several clarifying corrections.
Massachusetts’s updated 830 CMR 62B.2.1 can be found here.
