Massachusetts vs California Taxes
Compare the total tax burden between Massachusetts (5% + 4% surtax over $1M) and California (1% – 13.3%). Enter your income to see which state saves you more.
Tax at Different Income Levels
| Income | Massachusetts Total Tax | California Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,649 | $15,887 | Save $762 |
| $100,000 | $25,312 | $25,477 | +$165 |
| $150,000 | $43,255 | $45,570 | +$2,315 |
| $200,000 | $60,098 | $64,563 | +$4,465 |
Based on single filer, standard deduction, 2025 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd pay $165/year ($14/month) more in California vs Massachusetts.
Tax structure
Massachusetts has a flat 9.0% state income tax, while California uses progressive brackets up to 13.3%.
Effective rate at your income
At $100,000, Massachusetts's effective state rate is 4.2% vs 4.4% in California — a 0.2 percentage point gap.
Tip: For most earners, the flat 5% rate is straightforward. If your income approaches $1 million (including capital gains), the additional 4% surtax creates a cliff — $1 of income over $1M costs an extra $40,000 in tax. Timing income around this threshold can be valuable.
Tip: California's progressive brackets mean your effective rate is much lower than 13.3% for most earners. At $100,000, the effective state rate is approximately 5.8%. Consider maximizing 401(k) contributions and HSA to reduce California-taxable income.
Understanding Each State
Massachusetts
Massachusetts has a flat income tax rate of 5% on most income, plus an additional 4% surtax on income over $1 million (the 'millionaire tax' effective 2023). This creates an effective 9% rate on income above $1 million. MA does not offer separate standard deductions like the federal system.
Tip: For most earners, the flat 5% rate is straightforward. If your income approaches $1 million (including capital gains), the additional 4% surtax creates a cliff — $1 of income over $1M costs an extra $40,000 in tax. Timing income around this threshold can be valuable.
California
California has the highest top marginal state tax rate in the US at 13.3%, with progressive brackets starting at 1%. An additional 1% Mental Health Services Tax applies to incomes over $1 million. Despite high taxes, California's economy — tech, entertainment, agriculture — attracts top talent globally. Under OBBBA (2025+), the SALT deduction cap rose to $40,000 ($20,000 MFS) but phases out $1-for-$1 above $500,000 MAGI ($250,000 MFS) toward a $10,000 floor — so high-income California itemizers see only partial federal relief.
Tip: California's progressive brackets mean your effective rate is much lower than 13.3% for most earners. At $100,000, the effective state rate is approximately 5.8%. Consider maximizing 401(k) contributions and HSA to reduce California-taxable income.
Key Comparison Points
Income tax structure: Massachusetts has a flat income tax (5% + 4% surtax over $1M), while California has a progressive income tax (1% – 13.3%).
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA (2025+), the federal SALT cap is $40,000, phasing out above $500,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in Massachusetts or California?
Based on income tax alone, Massachusetts has a lower tax burden. At $100K income, you'd save $165 annually in Massachusetts compared to California. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from California to Massachusetts?
A single filer earning $100,000 would save approximately $165 per year in total taxes by living in Massachusetts instead of California. At $150,000 income, the savings change to $2,315 per year.
What is the income tax rate in Massachusetts?
Massachusetts has a flat income tax with rates of 5% + 4% surtax over $1M.
What is the income tax rate in California?
California has a progressive income tax with rates of 1% – 13.3%.