Income taxes, property taxes, state spending, competitiveness rankings, and cost of living — sourced from official government agencies and, where noted, independent research organizations
Tax Foundation rank: — the year the surtax passed, worst at —, — now
MA is 8th worst overall for tax competitiveness nationally
State spending grew — since FY2018 (signed budgets, through FY2026) — income growth —
FY2025 actual spending was — over the signed budget
Middle class (—) pays the highest effective rate at — (ITEP, all state+local)
Inflation over the same window was — (CPI-U, fiscal-year averages) — spending grew faster than prices and than incomes
Tax Foundation Competitiveness Sub-Rankings
Income Tax
#42
9th worst nationally
Property Tax
#48
3rd worst nationally
UI Tax
#45
6th worst nationally
Corporate Tax
#33
18th worst nationally
Sales Tax
#22
22nd most competitive
Tax Competitiveness Index — Historical Rank
Source: Tax Foundation State Tax Competitiveness Index, 2020–2026
Effective Tax Rate by Income Bracket (ITEP)
Source: Institute on Taxation and Economic Policy "Who Pays?" 2024
📋 MA Tax Structure at a Glance
Massachusetts levies a 5% flat income tax, plus a 4% surtax on income over ~$1.08M (9% total). Sales tax is 6.25% with no local add-ons. Property taxes average $7,732/year for a single-family home. The state also imposes an estate tax (threshold: $1M), a real estate transfer tax, and one of the nation's most burdensome unemployment insurance tax systems. MA is an outlier in imposing a separate payroll tax for non-UI purposes.
🔥 H.5555 — What “No New Taxes” Actually Buys
The FY2027 budget totals — — up $2.4B in one year, — since FY2018 (income —, inflation — through FY2026).
$579M for the shelter machine — incl. $259.9M emergency family shelters and $82.3M HomeBASE.
$8M for immigrant legal defense — the fund the MIRA Coalition administers with 24 deportation attorneys (up from $5M).
$24M for a DEI & identity apparatus — MCAD, Supplier Diversity, “Environmental Justice,” a dozen commissions.
$861M in cash welfare — while just 0.24% of benefits are ever checked for fraud.
Passed the Senate 39–1 and now heads to Gov. Healey’s desk. Mariano moved it in the House; Spilka ran the Senate.
This compares the enacted FY2026 appropriation to the FY2027 amount in H.5555, line by line — apples to apples, no accounting noise. Sorted by dollar increase; use the dropdown to flip to percent, or search a program. (788 of 860 lines matched to a prior-year appropriation; the rest are new FY27 lines.)
Top 14 Line Items by Dollar Increase (FY2026 → FY2027, $ millions)
Source: FY2026 enacted GAA vs. H.5555 FY2027 appropriations. Hover a bar for the % and the before/after.
Line
Program
FY26 GAA
FY27 (H.5555)
Change
%
Source: FY2026 enacted General Appropriations Act vs. FY2027 (H.5555). 788 matched line items. Red = increase, green = cut.
The Receipts — Every Bar Is a Real Line Item
💸 Pulled straight from the bill
Each bar below is an actual appropriation from the H.5555 conference report — hover to see the line-item code, then search it in the table at the bottom of this tab. Nothing here is an estimate.
🏠 The Shelter Machine — $579M ($ millions)
EA family shelters, HomeBASE, homeless assistance & admin. Lines 7004-*, 5046-2000, 7035-0008, 4000-0007.
Debt service, State Retiree Benefits Trust, Big Dig debt. Lines 0699-*, 1599-6152.
🗳️ The Vote — Roll Call #200, Passed 39–1
Under a Democratic supermajority there is no procedural excuse. Speaker Ron Mariano moved it through the House, Senate President Karen Spilka ran it through the Senate, and it now heads to Governor Maura Healey’s desk to be signed into law. The lone no vote was Republican Sen. Ryan Fattman.
See It for Yourself — All 860 Line Items
Line Item
Dept
Program
FY2027 $
Resolution
Source: Fiscal Year 2027 Conference Committee Report (H.5555), line-item appropriations table. Parsed 2026-07. Resolution shows whether the final figure matched the House, Senate, a compromise, or was unchanged (NIC).
“No new taxes” — while spending grows $2.4B, $579M feeds the shelter machine, $8M funds deportation defense, and the audit that would catch the waste never happens.
Income Tax & "Millionaires Surtax"
Base Rate
5%
Flat on all income
Surtax Rate
+4%
On income > $1.08M
Top Combined Rate
9%
Short-term cap gains: 12.5%
FY2024 Surtax Revenue
$2.4B
Beat $1.5B estimate by 60%
FY2025 Surtax Revenue
~$3.0B
Double original projections
⚠️ The Surtax Squeeze
Passed by just 51% of voters in November 2022
Dismantled MA's formerly competitive flat income tax
Threshold rises with inflation: $1M → $1.053M → $1.083M
~27,000 taxpayers affected — a volatile revenue source
FY2026 budget shifts $496M in Chapter 70 to surtax funds — critics say "supplanting not supplementing"
Spending growth (20%) has outpaced revenue growth (6%) since surtax passage
Surtax Revenue Collections
Source: MA Department of Revenue; Snopes/WBUR verified figures
FY2026 Surtax Spending Allocation ($2.4B)
Source: MA FY2026 Budget, Fair Share Fund allocations
Effective State & Local Tax Rates by Income Bracket
Income Bracket
Effective Rate
Notes
< $26,800
8.2%
Low income
$26,800 – $103,500
9.2 – 9.6%
Working/middle class
$103,500 – $160,000
10.0%
HIGHEST burden — upper middle class
$160,000 – $391,100
9.0%
Upper income
$391,100 – $1,000,600
7.9%
Lowest burden bracket
> $1,000,600
8.9%
Top 1% (post-surtax)
Source: Institute on Taxation and Economic Policy (ITEP), "Who Pays?" 7th Edition, 2024
Property Tax
Avg SF Tax Bill
$7,732
FY2025 statewide
Avg SF Home Value
$700,615
FY2025 assessed
Total Property Levy
$24.0B
FY2026 — up $1.2B YoY
Total Assessed Value
$2.0T
FY2026 — passed $2 trillion for the first time that year
National Rank
#48
3rd worst (Tax Foundation)
Statewide Property Tax Levy Growth (FY2016–FY2026)
Source: MA Division of Local Services (DLS), FY2026 Tax Levies Report
Residential Tax Rates — North Shore Towns (per $1,000)
Source: MA DLS Certified Tax Rates FY2025
📋 Proposition 2½
Massachusetts law limits annual property tax levy growth to 2.5% plus new growth, unless voters approve overrides or exclusions. Despite this cap, the total statewide levy grew from $14.6B in FY2015 to $24.0B in FY2026 — a 64% increase. Rising assessed values drive higher bills even when rates stay flat. MA also taxes commercial property more heavily than residential, and levies both an estate tax and a real estate transfer tax.
Average SF Tax Bills by County — FY2025 (Median of Communities)
County
Median Avg Tax Bill
vs. State Median
Norfolk
$10,200+
Above
Middlesex
$9,500+
Above
Plymouth
$7,800+
Near median
Essex
$7,600+
Near median
Worcester
$5,800+
Below
Berkshire
$4,200+
Well below
Source: MA DLS FY2025 Average Single-Family Tax Bill Report. State median: $7,732.
State Budget & Spending
FY2025 Actual Spending
—
— over signed budget
FY2026 Signed Budget
—
Before supplementals
Growth Since FY2018
—
Signed budgets: —
Income Growth Since FY2018
—
BEA personal income, —
⚠️ Spending Outpaces Income and Inflation
State spending: — since FY2018 (signed budgets, through FY2026). Taxpayer income growth: — (BEA). Inflation: — (CPI-U, fiscal-year averages)
FY2025: signed at —, actual spending hit — with supplementals — expect FY2026 to follow same pattern
Spending has outrun income by — and inflation by — since FY2018 — every figure here from the GAA, BEA and BLS directly
State Budget Growth: FY2018 – FY2026
Source: MA General Appropriations Act — the signed budget for each fiscal year, plus FY2025 actual spending including supplementals (House Ways & Means)
Growth Comparison Since FY2018
Sources, all primary: MA General Appropriations Act (signed budgets, FY2018→FY2026); BEA Total Personal Income in Massachusetts (FRED MAOTOT, quarterly SAAR); BLS CPI-U, US city average (CUSR0000SA0). Income and CPI are averaged over the fiscal year (Jul–Jun) to match the budget's clock. FY2026 income is the mean of 3 published quarters — BEA has not released 2026Q2 — which if anything understates income growth.
How MA Compares to Competitor States
Tax Structure Comparison — MA vs. Key Competitors
State
Income Tax
Sales Tax
Tax Foundation Rank
Massachusetts
5% + 4% surtax (9%)
6.25%
#43 (8th worst)
New Hampshire
None
None
#6
Florida
None
6.0%
#4
North Carolina
4.5% flat (declining)
4.75%
#11
Texas
None
6.25%
#13
Tennessee
None
7.0%
#8
Source: Tax Foundation 2026 State Tax Competitiveness Index
This tab compares tax structure. It carried a cross-state spending-growth comparison until July 2026, when the figures turned out to rest on an advocacy group's analysis rather than the official source they were credited to. No government series — NASBO or Census — publishes comparable state budget growth through FY2026, so the comparison is not restated on a weaker basis. Massachusetts' own spending growth, — since FY2018, is derived from the Commonwealth's signed appropriations acts on the State Budget tab.
⚠️ The Exodus Connection
MA's high-tax environment is a key driver of net domestic outmigration
Top destinations for MA leavers: FL, NH, TX, NC — all lower-tax states
Tax Foundation: MA surtax "dismantled the state's formerly competitive flat income tax"
NH ranks #6 nationally — best in New England — with no income or sales tax
The Real Cost of Living in Massachusetts
Every data point below is from official U.S. government sources — BEA, BLS, Census Bureau, EIA, DOL. No think tanks. No advocacy groups.
BEA Regional Price Parity
105.8
5.8% above national average (BEA 2024)
$100 Buys Only
$94.56
In real purchasing power
Electricity Rate
29.45¢/kWh
vs 18.83¢ national avg (EIA, Apr 2026)
Infant Childcare
$24K+/yr
#2 most expensive (DOL/EPI)
📡 Live Cost Tracker — Boston vs. National (BLS CPI) ✓ Updated May 2026
Year-over-year inflation by category. Boston figures: May 2026 (BLS release June 10, 2026). National: April 2026 (BLS release May 12, 2026). EIA electricity: March 2026 (published May 21, 2026).
Category
Boston / NE
US Average
MA Premium
Source
All Items (CPI-U)
+3.2%
+2.9%
+0.3pp
BLS CPI (May 2026)
Shelter / Housing
+2.2%
+3.6%
-1.4pp
BLS CPI (May 2026)
Electricity
29.45¢/kWh
18.83¢/kWh
~56%
EIA (Apr 2026)
Overall Price Level
—
100.0
—
BEA RPP (2024)
Purchasing Power of $100
—
$100.00
—
BEA RPP (2024)
CPI and electricity data auto-updated via GitHub Actions. BEA RPP updates annually.
Boston vs. National Inflation by Category (YoY %)
Source: BLS CPI-U, Boston-Cambridge-Newton MSA vs US City Average
Cumulative Inflation Since January 2021 — National vs. Boston
Not the annual rate — the total price increase since January 2021. Each line runs through the latest BLS release; the final point on the chart shows its month. Boston-area CPI is published bimonthly, so it lags the national series.
National CPI-U
—
—
Boston CPI-U
—
Jan '21 → latest BLS Boston release (bimonthly)
Boston Shelter
—
Jan '21 → latest — vs — national
Boston Tuition & Childcare
+6.7% YoY
Jan '26 — a record high at the time
$1 (Jan '21) Buys
—
National purchasing power today
⚠️ The Double Squeeze — Inflation on Top of an Already-Expensive State
National cumulative CPI: — (BLS). Boston: — — BLS publishes Boston CPI bimonthly, so it trails the national series
Boston headline looks lower because MA avoided the worst energy spikes. Shelter numbers: Boston — cumulative vs. — national
Boston tuition & childcare rose 6.7% YoY in Jan 2026 — at the time the steepest rise since BLS began the series in 2018
All of this sits on top of MA's cost-of-living premium — BEA RPP 2024 puts MA at — against a national 100, so you were already paying — more before inflation hit
A $100 grocery run in Jan 2021 now costs — nationally (BLS CPI-U, compounded since Jan 2021) — and MA starts from the higher base noted above
In March 2026, national CPI jumped 0.9% in a single month as gasoline surged 21.2% — a reminder of how fast a single energy spike moves the headline number
Cumulative Inflation — National CPI vs. Boston CPI (Since Jan 2021)
Where Boston Beats National: Cumulative Shelter Inflation
Source: BLS CPI Shelter sub-index. Boston shelter surpassed national in 2023. Shelter = ~35% of CPI weight.
The Massachusetts Squeeze: Inflation × Cost Premium
Source: BLS CPI-U (inflation) + BEA RPP (cost premium). What $100 of national goods actually costs a MA family over time.
Annual Rate vs. Cumulative Damage (National)
Source: BLS CPI-U. Annual YoY % (bars) vs. cumulative total (line). The annual rate headlines mask the total reality.
Prices vs. Wages: Who's Winning? (National, Since Jan 2021)
Source: BLS CPI-U (prices); BLS Average Hourly Earnings, Total Private (wages). The shaded gap = real purchasing power loss.
Year-over-Year CPI: National vs. Boston (BLS Releases)
Period
National YoY
Boston YoY
Boston Shelter YoY
Nat'l Cumulative
Boston Cumulative
Jan 2022
+7.5%
+6.3%
+4.1%
+7.5%
+6.3%
Jan 2023
+6.4%
+6.5%
+7.1%
+14.4%
+13.2%
Jan 2024
+3.1%
+2.0%
+7.0%
+17.9%
+15.5%
May 2024
+3.3%
+4.0%
+7.7%
+19.7%
+17.8%
Jul 2024
+2.9%
+3.5%
+6.6%
+20.3%
+18.8%
Jan 2025
+3.0%
+3.9%
+4.4%
+21.5%
+19.8%
Jan 2026
+2.4%
+1.4%
+2.0%
+24.8%
+23.6%
Mar 2026
+3.3%
—
—
+26.2%
—
Apr 2026
—
—
—
+27.3%
—
May 2026 (Boston)
—
+3.2%
+2.2%
—
—
Source: BLS CPI-U national (SA, monthly); BLS CPI-U Boston-Cambridge-Newton (NSA, bimonthly). Cumulative = compounded from Jan 2021 base. March 2026 data from BLS release April 10, 2026.
📊 Why "Lower Than National" Doesn't Mean Massachusetts Is Cheaper
Boston's CPI only measures price changes from its own baseline — not absolute price levels between cities
MA started from a higher base: BEA RPP = — (— above the national average for all goods/services)
A — increase on top of an elevated base means a MA family pays more in absolute dollars for the same inflation rate
But the two don't multiply: RPP covers Massachusetts statewide, while Boston's CPI covers the Boston-Cambridge-Newton metro — which reaches into New Hampshire. Carrying RPP forward by CPI misses BEA's own published level by 1–4 points, so read the premium and the inflation rate as two separate facts, not one dollar figure
Shelter is where the gap really shows: MA rents run — above national (BEA RPP 2024) — against just — for all items
Wages have grown — since Jan 2021 — prices are up — nationally. Real purchasing power has fallen, by —
ℹ️ Cumulative Inflation Data Sources
National CPI-U (CPIAUCSL): BLS, seasonally adjusted, monthly. Jan 2021 index: 261.582. Dec 2025: 326.030. March 2026 data released April 10, 2026. Boston CPI-U (CUURA103SA0): BLS, not seasonally adjusted, bimonthly. Jan 2026 index: 347.892. Covers Boston-Cambridge-Newton, MA-NH CBSA. Boston Shelter: BLS CPI shelter sub-index for Boston CBSA. Jan 2026: shelter +2.0% YoY (OER +4.1%, rent +3.6%). Wages: BLS Average Hourly Earnings, Total Private (CES0500000003), seasonally adjusted. Methodology: Cumulative change = ((Current Index / Jan 2021 Index) - 1) × 100.
⚠️ The Purchasing Power Illusion — Official BEA Data
MA median household income: #1 at $113,900 (Census 2024 ACS) — but that's nominal dollars
BEA's RPP adjustment reduces purchasing power by — — MA drops from top tier when costs are factored in
MA per capita PCE: $69,101 — highest of any state (BEA 2023) — residents spend more because everything costs more
Boston CPI shelter costs up +4.0% YoY (BLS Jan 2026) — outpacing national shelter inflation
Electricity rates ~63% above national average (EIA, Mar 2026) — highest in continental US
Cost to raise one child: $44,221/yr — #1 most expensive state (MIT Living Wage Calculator / SmartAsset 2025)
BEA Regional Price Parities — MA vs Competitor States (2024)
Source: U.S. Bureau of Economic Analysis, Regional Price Parities (FRED, Dec 2024)
What $100 Actually Buys — Purchasing Power by State
The U.S. Bureau of Economic Analysis (BEA) publishes Regional Price Parities (RPPs) that measure how much prices differ across states compared to the national average (100). An RPP of 105.8 means Massachusetts costs are 5.8% above the national average across all goods and services. The RPPs are built from BLS Consumer Price Index data and Census Bureau American Community Survey housing data — the most comprehensive official cost-of-living measure available. When applied to income, RPP-adjusted "real" income shows actual purchasing power.
EIA Residential Electricity Rates — MA vs Selected States (¢/kWh, Apr 2026)
Source: U.S. Energy Information Administration, Electric Power Monthly (Apr 2026)
Annual Cost of Infant Childcare by State
Source: Economic Policy Institute / DOL; SmartAsset 2025 (MIT Living Wage Calculator)
The MA Cost Burden — Official Government Data
Category
Massachusetts
US Average
MA Premium
Source
Overall Cost of Living (RPP)
105.8
100.0
+8.2%
BEA (2024)
Residential Electricity
29.45¢/kWh
18.83¢/kWh
~56%
EIA Electric Power Monthly (Apr 2026)
Median Household Income
$113,900
$83,730
+36% nominal
Census ACS (2024)
After RPP Adjustment
~$107,700
$83,730
+29% real
BEA-adjusted
Infant Childcare (annual)
$24,000+
$14,802
+62%
EPI / DOL
Cost to Raise 1 Child (annual)
$44,221
$27,743
+59%
SmartAsset / MIT (2025)
Boston CPI – Shelter (YoY)
+4.0%
+3.6%
Above US
BLS (Jan 2026)
Boston CPI – All Items (YoY)
+2.8%
+2.7%
Above US
BLS (Jan 2026)
C2ER Housing Index
196.2
100.0
+96%
C2ER / BLS (2025)
C2ER Utilities Index
153.2
100.0
+53%
C2ER / EIA (2025)
📊 The Middle-Class Squeeze — By the Numbers
A MA family of 4 earning the state median ($113,900) spends ~$44K on one child — that's 39% of gross income before taxes
Federal affordability benchmark for childcare: 7% of income. MA families pay 18-20% — nearly 3x the benchmark
Two children in center-based care: ~$40,000/yr — more than average in-state college tuition (EPI)
After 5% income tax, ~10% effective property tax burden, and 8%+ cost premium, a $113K salary in MA buys what ~$85-90K buys in NC or TX
MA electricity costs $167/month average — vs ~$147 national average — an extra $240+/year just on power (EIA)
Boston-area rents: owners' equivalent rent up +4.4% YoY even as national shelter inflation slows (BLS Jan 2026)
MA Cost of Living Premium Over Time (BEA RPP)
Source: FRED / BEA, MARPPALL (2008–2024)
Income vs Actual Purchasing Power — State Comparison
Source: Census ACS 2024 (median HH income) adjusted by BEA RPP (2024)
ℹ️ Data Sources — All Official U.S. Government
BEA (Bureau of Economic Analysis): Regional Price Parities, Real Personal Income, Per Capita PCE — the federal government's official cost-of-living comparison tool. BLS (Bureau of Labor Statistics): Consumer Price Index for Boston-Cambridge-Newton MSA, bimonthly series. Census Bureau: American Community Survey (ACS) median household income, housing cost data. EIA (Energy Information Administration): State-level residential electricity prices, Electric Power Monthly. DOL / EPI: Childcare cost data compiled from state licensing data and provider surveys. MIT Living Wage Calculator: Used by SmartAsset for state-level child-rearing cost estimates.
Public Benefits Fraud — What's Detected vs. What Exists
Massachusetts spends $4.5B+ on public benefits annually. The state catches — in fraud. The national benchmark suggests — more goes undetected.
Annual Fraud Detected
$11–13M
BSI official figures
Detection Rate
0.24%
Of total benefit spending
National Fraud Rate
3–5%
Federal benchmark
Estimated Actual Fraud
$135–225M
Based on national rates
Under-Detection
—
Gap vs. national benchmarks
⚠️ The Detection Gap — By Design
BSI examines 0.07% of benefit recipients — of those examined, 6.6% are confirmed fraud
BSI has ~15–20 investigators for 2.2 million benefit recipients statewide
Return on investment: $6.17 detected per $1 spent on investigation — yet staffing hasn't increased
Gov. Healey's administration refused to share SNAP data with USDA (November 2024)
MA is the only state where the governor's office, judiciary, and legislature are all exempt from public records law
Emergency shelter costs $3,870/week per family — national average: $700–$1,050/week (3.7–5.5× higher)
Fraud Detected vs. Estimated Actual Fraud (Annual)
Source: MA State Auditor BSI Reports (FY2023–FY2025); USDA-FNS SNAP Trafficking Studies (national rates)
BSI Fraud Detection by Program — FY2025
Source: MA State Auditor, Bureau of Special Investigations FY2025 Annual Report
Estimated Fraud by Program — Conservative (3%) vs. Moderate (5%)
Program
Annual Spending
Est. Fraud (3%)
Est. Fraud (5%)
Detected
Emergency Shelter
$900M
$27M
$45M
Minimal
SNAP
$2,500M
$75M
$125M
$690K
MassHealth (immigrant)
$450M
$13.5M
$22.5M
$3.8M
Cash Welfare (TAFDC/EAEDC)
$300M
$9M
$15M
$32K
Childcare (EEC)
$200M
$6M
$10M
$135K
Other
$200M
$6M
$10M
—
TOTAL
$4,550M
$136.5M
$227.5M
$11M
Source: MA State Auditor BSI (detected); program spending from MA FY2025 Budget; fraud rate estimates based on USDA-FNS, GAO, and LexisNexis True Cost of Fraud studies
What Massachusetts Doesn't Do — vs. Other States
Source: GAO Report on SNAP fraud (2019); state program comparisons
BSI Detected Fraud — FY2015 to FY2025
Source: MA State Auditor, Bureau of Special Investigations Annual Reports
Verification System Comparison — MA vs. Other States
Verification Method
Massachusetts
Florida
Texas
Impact
IRS Income Cross-Check
❌ No
✅ Yes
✅ Yes
Catches hidden income
Biometric Enrollment
❌ No
❌ No
✅ Yes
Prevents duplicate enrollment
Interstate Database Check
❌ No
✅ Yes
✅ Yes
Prevents multi-state fraud
USDA Data Sharing
❌ Refused
✅ Yes
✅ Yes
Federal oversight cooperation
Work Requirement Enforcement
❌ Waived
✅ Yes
✅ Yes
Reduces dependency fraud
Home Visit Verification
❌ No
❌ No
❌ No
Confirms residency
Source: GAO SNAP Fraud Report (2019); USDA-FNS; state program documentation; Gov. Healey USDA data refusal (Nov 2024)
💰 The Cost of Doing Nothing — Potential Savings
Income verification (IRS cross-check): estimated savings $30–50M/year
Total potential savings: $105–195M/year at an implementation cost of $10–15M
Every $1 of fraud costs taxpayers $3.72 when investigation and admin costs are included (LexisNexis)
📋 Why Detection Is So Low
Massachusetts relies on self-reported income for benefit eligibility — no IRS cross-check, no SSA cross-check, no employer verification. The Bureau of Special Investigations has roughly 15–20 investigators for 2.2 million benefit recipients, yet every dollar spent on investigation returns $6.17 in detected fraud. The state refused to share SNAP recipient data with the USDA in November 2024, and Massachusetts remains the only state in the country where the governor's office, judiciary, and legislature are all exempt from public records law — making independent oversight nearly impossible.
ℹ️ Data Sources
MA State Auditor: Bureau of Special Investigations (BSI) Annual and Quarterly Reports (FY2015–FY2025). USDA-FNS: SNAP Trafficking Studies — national fraud rate benchmarks. GAO: Government Accountability Office report on SNAP fraud detection (2019). LexisNexis: True Cost of Fraud™ Study for SNAP Agencies — $3.72 multiplier. New England First Amendment Coalition: MA public records law exemption analysis. Gov. Healey / USDA: SNAP data sharing refusal (November 2024).
⚠️ Massachusetts Is Hemorrhaging Taxpayers & Wealth
Net loss of 184,719 tax returns (filers) from 2011–2023 — 2022-23 data now released
Net AGI outflow of $24.7 billion over 12 years (money amounts in thousands)
Net outflow peaked at 26,326 returns (2021-22); 2022-23 shows 16,921 — but AGI loss deepened to $4.18B
Florida is the #1 destination: $2.9B AGI left for FL in 2021-22 alone
Net AGI loss hit $4.18B in 2022-23 — second worst ever; $4.3B in 2020-21 remains worst
MA loses more filers to FL, NH, NY, CA, RI, and CT — pattern unchanged in 2022-23
12-Year Migration Summary (2011–2023)
Cumulative Net Outflow
-184,719
Tax returns (filers) lost 2011–2023
Cumulative Net AGI Loss
-$24.7B
Adjusted Gross Income lost (in $K)
2022-23 Net Outflow
-16,921
Filer loss; AGI loss deepened to $4.18B
2022-23 Net AGI Loss
-$4.18B
2nd worst ever; $1.54 out per $1 in
Net Migration (Tax Returns) — 2011 to 2023
Source: IRS Statistics of Income — State-to-State Migration Data
Net AGI Flow ($K) — 2011 to 2023
Source: IRS Statistics of Income — State-to-State Migration Data
Top 10 Outflow Destinations by AGI (2022-23) ★
Source: IRS SOI State-to-State Migration, Calendar Years 2022-2023
Top 10 Inflow Origins by AGI (2022-23) ★
Source: IRS SOI State-to-State Migration, Calendar Years 2022-2023
Outflow vs Inflow — Tax Returns by Year
Source: IRS Statistics of Income — State-to-State Migration Data
Outflow vs Inflow — AGI ($K) by Year
Source: IRS Statistics of Income — State-to-State Migration Data
Year-by-Year Migration Data — Massachusetts
Tax Year
Outflow Returns
Inflow Returns
Net Returns
Outflow AGI ($K)
Inflow AGI ($K)
Net AGI ($K)
2011-12
75,810
69,756
-6,054
$5,263,200
$4,345,144
-$918,056
2012-13
77,705
71,265
-6,440
$6,007,613
$4,995,428
-$1,012,185
2013-14
75,295
64,653
-10,642
$5,445,749
$4,684,977
-$760,772
2014-15
56,998
49,424
-7,574
$4,409,835
$3,561,556
-$848,279
2015-16
81,828
66,581
-15,247
$6,844,341
$5,425,339
-$1,419,002
2016-17
108,721
88,611
-20,110
$9,090,923
$7,193,129
-$1,897,794
2017-18
86,746
71,861
-14,885
$7,584,423
$6,082,734
-$1,501,689
2018-19
85,889
70,985
-14,904
$7,738,005
$6,287,624
-$1,450,381
2019-20
94,318
73,879
-20,439
$9,519,489
$6,964,488
-$2,555,001
2020-21
98,989
73,812
-25,177
$11,581,383
$7,284,191
-$4,297,192
2021-22
104,472
78,146
-26,326
$13,202,799
$9,331,863
-$3,870,936
2022-23 ★
102,076
85,155
-16,921
$11,877,573
$7,701,622
-$4,175,951
Source: IRS Statistics of Income — State-to-State Migration Data, Calendar Years 2011-2023. Money amounts in thousands of dollars.
Top Outflow Destinations — Where MA Filers Went (2022-23) ★
Rank
Destination
Returns (Filers)
Individuals
AGI ($K)
1
Florida
12,159
19,927
$2,541,416
2
New Hampshire
10,603
16,174
$1,428,201
3
New York
11,027
13,534
$1,062,862
4
California
7,767
10,215
$903,230
5
Rhode Island
6,510
9,613
$571,899
6
Connecticut
6,006
8,873
$519,656
7
Texas
4,218
6,913
$465,759
8
Maine
3,330
4,870
$378,057
9
North Carolina
3,483
5,780
$347,702
10
New Jersey
3,048
4,265
$326,814
Source: IRS SOI State-to-State Migration Outflow, Calendar Years 2022-2023 ★ New
Top Inflow Origins — Where MA's New Filers Came From (2022-23) ★
Rank
Origin
Returns (Filers)
Individuals
AGI ($K)
1
New York
10,479
14,158
$1,047,036
2
California
6,565
9,037
$825,498
3
Florida
8,058
12,048
$666,088
4
New Hampshire
6,594
9,174
$557,595
5
Connecticut
6,467
8,711
$556,383
6
Rhode Island
5,218
7,558
$386,682
7
New Jersey
3,596
4,973
$346,234
8
Texas
3,394
5,207
$322,656
9
Pennsylvania
3,335
4,493
$286,389
10
Illinois
2,201
3,044
$237,652
Source: IRS SOI State-to-State Migration Inflow, Calendar Years 2022-2023 ★ New
The Surtax Paradox: Collecting More, Losing More
💰 Without the Surtax, the Budget Doesn't Balance
FY2025 signed budget: — — actual spending hit — (— over budget)
FY2024 non-surtax revenue missed benchmarks by $233M — the surtax papered over the gap
Surtax collected — cumulative (FY24–FY25) — but net AGI outflow was $8.2B in those same migration years
State spending grew — since FY2018 (signed budgets, through FY2026)
The 2022-2023 IRS migration data is now released — first full year with surtax in effect
2022-23 confirms the pattern: net AGI loss of $4.18B — surtax collecting from a shrinking base
Surtax Revenue (FY24+FY25)
—
—
Net AGI Outflow (2020-22)
-$8.2B
$4.3B + $3.9B lost to migration
FY25 Actual vs. Budget
—
—
FY26 Budgeted Surtax
$2.4B
Already baked into $60.9B budget
Surtax Revenue vs. Net AGI Outflow
Source: MA DOR (surtax revenue); IRS SOI (migration AGI). Note: Surtax = fiscal year; Migration = calendar year. The CY 2022-23 bar is IRS-released data (March 2026), not a projection.
Budget Growth vs. Base Revenue: The Widening Gap
Source: MA DLS (budget); MA DOR (revenue); FY2025 actual spending per House Ways & Means
Surtax Collections vs. Migration AGI Loss — Side by Side
Period
Surtax Collected
Net AGI Outflow (IRS)
Net Balance
Budget (Signed)
Budget (Actual)
FY2024 / CY 2021-22
+$2.4B
-$3.9B
-$1.5B
$56.2B
—
FY2025 / CY 2020-21
+$3.0B
-$4.3B
-$1.3B
$57.8B
$64.0B
FY2026 / CY 2022-23 ★
$2.4B (est.)
-$4.18B (IRS released)
-$1.78B
$60.9B
—
Cumulative
—
-$24.7B (12yr)
—
Spending — since FY18
Source: MA DOR, MA DLS, House Ways & Means, IRS SOI Migration Data. Surtax = fiscal year collections, actuals only — the FY2026 row is a budgeted figure and is excluded from the cumulative. AGI outflow = calendar year IRS migration data (thousands $); the cumulative column is the full 12-year total, not the sum of the three rows above it. CY 2022-23 data was released by the IRS in March 2026 and is included.
📊 What the 2022-23 IRS Data Showed
The 2022-2023 migration data, released by the IRS in March 2026, covers the first full tax year in which the 4% surtax was in effect (effective Jan 1, 2023). Net AGI outflow came in at — — the second-worst year on record, behind 2020-21. Net filer loss, however, fell to 16,921 from 26,326 the year before: fewer households left, but the ones who did took more income with them. Set against the — the surtax collected across FY2024–FY2025, the state lost more AGI to migration in this single year than the surtax raised in either of them. One year of data cannot separate the surtax's effect from the tail of COVID-era remote-work migration; the 2023-24 release (expected around March 2027) is the first year that could.
ℹ️ About This Data
Source: IRS Statistics of Income (SOI) — State-to-State Migration Data, derived from individual income tax returns. A "return" represents a single tax filing (individual or joint), and "individuals" includes all exemptions claimed. AGI figures are in thousands of dollars.
Methodology: The IRS identifies migration by comparing filing addresses year-over-year. If a filer's address state changes between tax years, they are classified as a migrant. This captures approximately 95% of the filing population. "Net" figures = Inflow minus Outflow (negative = more people/money leaving MA).
Key context: The 2014-15 dip in volume reflects an IRS methodology change (switch from exemptions-based to dependent-based counting). The post-2019 acceleration coincides with COVID-era remote work migration and the passage of the "Millionaires Surtax" in 2022. ★ 2022-23 data added March 2026.
Are Wealthy People Leaving Massachusetts?
2022–2023: People leaving MA earned ~29% more on average than people moving in — the biggest gap in over a decade.
Data through IRS SOI March 2026 release · Next major update expected March 2027
Every year the IRS tracks who filed taxes in Massachusetts and what happened to them — did they stay, move in, or move out? This page looks at whether the people leaving Massachusetts are richer than the people arriving, and whether that changed after the new millionaires tax kicked in January 2023.
📊 The Short Version
In 2022-23, the average person leaving Massachusetts earned $116,360. The average person moving in earned only $90,440. That's a gap of nearly $26,000 per household.
That $26,000 gap is the biggest we've ever seen — and it showed up in the very first year the new 4% surtax was in effect. Earners over $200K drove an estimated 70% of the $4.2B net income lost in 2022-23 (Pioneer Institute analysis of IRS data).
For the 10 years before the surtax, the people leaving and arriving earned roughly the same amount. Migration was basically income-neutral.
The number of Massachusetts residents in the top 1% of earners: — in —, — at its highest in —, and — in —. Note the count is a fixed 1% of all filers, so it tracks the size of the filing population. The 2023 numbers are not out yet.
To be in the top 1% of Massachusetts earners in 2022, you needed to make at least $891,100 a year — up from $579,500 in 2013.
Important: We're still waiting on two key data releases from the IRS before we can say for certain what's happening. See the note at the bottom of this page.
Avg Income — People Leaving MA (2022-23)
$116,360
Per household that moved out
Avg Income — People Moving Into MA (2022-23)
$90,440
Per household that moved in
How Much Richer Are the Leavers?
29% more
Biggest gap in 10 years — first year of new surtax
Top 1% Earners Still in MA (2022)
—
Highest was — in — — 2023 data not yet out
Income of movers · Massachusetts · 2022–2023
Moving in
$90,440
per household
Moving out
$116,360
+$25,920
per household
Arrives
$1.00
Departs
$1.29
For every $1.00 of income moving into Massachusetts, $1.29 walks out the door — the widest gap in over a decade, first appearing the year the surtax took effect.
Average Income: People Leaving MA vs. People Arriving (2013–2023)
When the two lines are close together, migration is income-neutral — roughly similar earners moving in and out. When the red line rises above the green, wealthier people are leaving than arriving. The gap spiked in 2022-23, the first year of the surtax. Source: IRS migration data.
How Much Richer Are the People Leaving? (% gap, each year)
A bar at 0% means leavers and arrivers earn the same. A bar at +28.7% means leavers earn 29% more on average than the people moving in. The dark red bar in 2022-23 is the highest in the entire 10-year record. Source: IRS migration data.
How Many Top-1% Earners Live in Massachusetts? (2013–2022)
This counts the Massachusetts tax filers in the top 1% of earners each year. Because the top 1% is by definition 1% of all filers, this line tracks the total filing population rather than any decision by high earners — it peaked in 2020 and has not returned to that level. The 2023 data has not been released yet. Source: IRS resident income data.
How Much Do You Need to Earn to Be in the MA Top 1%? (2013–2022)
The minimum income needed to crack the top 1% of Massachusetts earners. It is not a one-way climb: the floor fell from — in 2021 to — in 2022, a drop of —, after the 2021 capital-gains surge faded. A floor moves when incomes at the top change or when the filer pool changes, and this series on its own cannot separate the two. 2023 data not yet available. Source: IRS resident income data.
We'll get a clearer picture when the IRS releases resident income data for 2023 and migration data for 2023–2024 (the IRS has indicated around March 2027). As of July 2026 the 2023 resident data has still not appeared; IRS Historic Table 2 remains at tax year 2022. Check back for updates.
Every Year Side by Side: Income of People Leaving vs. Arriving
Year
Avg Income — Leaving MA
Avg Income — Moving Into MA
Difference
New surtax in effect?
2013-14
$72,300
$72,500
Nearly identical — no gap
No
2014-15
$77,400
$72,100
Leavers earn 7% more
No
2015-16
$83,600
$81,500
Leavers earn 3% more
No
2016-17
$83,600
$81,200
Leavers earn 3% more
No
2017-18
$87,400
$84,600
Leavers earn 3% more
No
2018-19
$90,100
$88,600
Leavers earn 2% more
No
2019-20
$100,900
$94,300
Leavers earn 7% more
No
2020-21
$117,000
$98,700
Leavers earn 19% more — COVID remote-work surge
No
2021-22
$126,400
$119,400
Leavers earn 6% more
No
2022-23 ★
$116,400
$90,400
Leavers earn 29% more ← biggest gap ever recorded
YES — started Jan 2023
Source: IRS state-to-state migration data, 2013–2023. Each row is one tax year. ★ = first year the new 4% surtax on income over ~$1M was in effect. The estimate that $200k+ earners account for ~70% of net AGI outflow is consistent with Pioneer Institute and NTU Foundation analyses of the March 2026 IRS release.
Massachusetts Top 1% Earners — What Does That Even Mean?
Year
Total MA Tax Filers
How Many Are in the Top 1%
Minimum Income to Qualify
What % of All MA Income Do They Earn?
2013
2,995,062
29,951
$579,500/yr
21.0%
2014
3,036,855
30,369
$632,500/yr
22.8%
2015
3,083,067
30,831
$649,800/yr
22.7%
2016
3,096,292
30,963
$655,700/yr
21.6%
2017
3,140,912
31,409
$698,300/yr
23.7%
2018
3,174,445
31,744
$740,000/yr
23.3%
2019
3,169,490
31,695
$765,800/yr
22.3%
2020
3,346,624
33,466
$777,100/yr
23.5%
2021
3,259,802
32,598
$988,300/yr
30.0%
2022
3,279,466
32,795
$891,100/yr
23.1%
2023 — not yet released
The IRS hasn't published this yet. This is the number that will tell us whether top earners actually started leaving after the surtax hit.
Source: IRS resident income data, 2013–2022. The "top 1%" just means the highest-earning 1% of all Massachusetts tax filers that year — about 30,000–33,000 people. Across the years in this table they earn between — and — of all income reported in the state; the high point is 2021, a year of exceptional capital-gains realisations.
Three Risks the Numbers Are Hinting At
⚖️ Risk 1 — The State Is Putting More Weight on Fewer Shoulders
About 32,800 people — the top 1% of Massachusetts earners — collectively earn 23% of all income in the state. The new surtax depends heavily on this same small group. That makes the state budget unusually sensitive to their decisions about where to live.
If just 5% of them leave (roughly — people), Massachusetts could lose an estimated — in annual income tax revenue. If 10% leave, that rises to — — — of the — surtax the state collected in FY2025.
Revenue at risk if top-1% leave
—
if 5% leave (~— people)
—
if 10% leave (~— people)
Based on avg top-1% income of — and the MA rates stated on this page (5% + 4% surtax over —). 2022 IRS data. Assumes leavers are average for the band and are not replaced.
👻 Risk 2 — The Tax Revenue Massachusetts Never Gets to Collect
Most high earners hold the majority of their wealth not in paychecks, but in things they have not sold yet — a company stake, an investment portfolio, a home that has tripled in value. Massachusetts can only tax those gains when the person actually sells.
If a high earner moves to a no-income-tax state before that sale happens, Massachusetts collects zero on what might be the single largest financial event of that person's life. By the time the IRS migration data shows them as "gone," the window has already closed.
Caveat: There is no public data on unrealized gains held by people who have moved, so this cannot be measured directly. But it is worth understanding: the 29% income gap we can measure may be the smaller part of the wealth quietly leaving Massachusetts.
🧩 Risk 3 — It Is Not Just About the Rate. It Is About Predictability.
For decades Massachusetts had a simple flat income tax — everyone paid 5%, full stop. High earners knew exactly what they owed. In 2023 that changed: anyone earning over about $1 million now pays an extra 4% on top, and that threshold adjusts each year with inflation.
The evidence suggests people are not just chasing lower rates — they are moving to simpler, more predictable tax structures. A business owner who might earn $800K one year and $2M the next faces very different tax planning in Massachusetts than they did five years ago.
Massachusetts has effectively introduced a predictability penalty — the added cost and uncertainty of managing a variable tax rate on top of an already-high base rate. For high earners, that complexity is itself a reason to simplify by moving.
Three-Model Consensus ⓘ
Claude · Grok · Gemini · March 2026
Strongest signal
The 28.7% wealth premium for 2022-23 leavers is the clearest sign of high-earner-skewed outmigration in a decade of records.
The trend
Outflow is becoming more concentrated among higher earners — the $200K+ group accounts for an estimated 70% of the net income lost.
What to watch
The 2023-24 migration data (expected March 2027) will determine whether 2022-23 was a one-time spike or the start of an accelerating trend.
This section reflects independent agreement across three AI models reviewing the same IRS data. It does not constitute a political endorsement. All figures from official IRS Statistics of Income sources. Revenue-at-risk estimates are based on 2022 income data and current tax rates, and are clearly marked as estimates.
⚠️ What We Know, What We Don't, and What We're Still Waiting For
What we know: In the first year of the surtax (2022-23), people leaving Massachusetts earned 29% more on average than people arriving — the biggest gap in a decade of records. That's a real and unusual signal.
What we don't know yet: We don't have the 2023 resident data, so we can't confirm that the number of wealthy people living in Massachusetts actually went down. It's possible they left and were replaced. The migration data tells us about movement — not about whether the total pool shrank.
Think of it this way: Imagine your neighborhood's block party budget. If the families with the biggest contributions keep moving away — taking their paychecks with them — things get tighter for everyone, even if the total number of houses stays about the same. That's what the data is hinting at for Massachusetts right now.
What to watch for: Two IRS datasets will answer this definitively. The 2023 in-state income data will show if fewer top earners filed from a Massachusetts address; it had been expected by 2026 but has not been published as of July 2026. The 2023-24 migration data (the IRS has indicated around March 2027) will show if the trend continued into a second year. Until then, the 29% gap is the strongest evidence we have — suggestive, but not yet conclusive.
Who Actually Funds Massachusetts?
A breakdown of income taxes, capital gains, and economic activity by earnings percentile. Source: IRS SOI In-State AGI Shares, tax year 2022.
The top 1% of MA earners — about 32,800 people — pay more federal income tax than the bottom 75% of MA filers combined.
Read this before the numbers below. IRS SOI publishes federal tax paid by Massachusetts filers; it does not publish Massachusetts income tax. Every share and effective rate on this tab is therefore federal. They are a fair guide to how concentrated income and tax capacity are in Massachusetts, but they are not MA collections: taken as state tax the table would imply about $70B of MA income tax against actual collections in the low $20B range.
Which Group Is Hit Hardest?
The answer depends on what kind of impact you mean. Each income group faces a different squeeze — and they compound on each other.
Most squeezed overall
Upper Middle Class —
📊 Pays the highest effective tax rate of any ITEP band — — all-in, more than millionaires (—)
🚫 Not hit by the surtax — but gets no low-income credits either
🏠 Fully exposed to the 5.8% cost-of-living premium with no cushion
📦 If top earners leave, this group is next in line to absorb the fiscal gap
❌ Too rich for benefits, too middle to just move
Most regressive burden
Working Class $32K – $65K
💸 Pays 1.4–2.1% of income toward immigration shelter costs — the most regressive share of any group
🏘️ Concentrated in inner-ring cities bearing the direct service burden
🏠 Competes with new arrivals for housing, entry-level wages, and services
⚡ Electricity, childcare, and rent consume a much larger share of income than for higher earners
📉 If state revenue falls, their neighborhood services are cut first
Most in absolute dollars — but most mobile
Top 1% Over $891K
💰 Average — in MA state income taxes per year — per person
➕ New surtax adds 4% on every dollar over $1.08M
✈️ Unlike other groups, they can leave — and the data shows they are
📊 — effective MA rate, vs 5% for filers under the surtax threshold (the 27.3% in the table below is federal)
🔄 Their departure transfers the burden downward to the groups above
Most dependent on stability
Bottom 25% Under $32K
✅ Pay only 0.4% of all MA income taxes — largely insulated from income tax directly
🏥 Most dependent on MassHealth, housing vouchers, SNAP, and transit
⚠️ If high earners leave and state revenue shrinks, their services are cut
🔗 Indirectly exposed: everything they depend on is funded by the groups above them
📊 Most impacted by inflation and housing, not income tax
The cascade effect — what happens when top earners leave
Top 1% leaves → — revenue gap opens up
↓
State raises taxes or cuts services to fill gap
↓
Upper middle class ($104K–$233K) absorbs higher burden — already paying the highest effective rate
↓
Working class sees service cuts and housing/cost pressure worsen
↓
Bottom 25% loses services they depend on but can't replace
The departure of high earners doesn't just hurt the wealthy — it cascades downward. The upper middle class is squeezed first (higher taxes, same costs). The working class loses services and faces more competition for housing. The bottom 25% lose the safety net that the whole system was funding. Everyone loses, but in different ways and at different speeds.
Effective Tax Rate by Income Group — Who Actually Pays the Most? (2022)
Source: ITEP "Who Pays?" 2024 (bars: all MA state+local taxes) and IRS SOI 2022 (line: federal income tax). The two series are not comparable and are shown together only for scale: the federal line rises above the ITEP bars at the top because it is a different tax, not because income tax exceeds all taxes. The IRS figures are percentile bands mapped approximately onto ITEP's dollar bands. On the ITEP bars alone, the upper middle class pays more of its income in MA state+local tax than millionaires do — a quirk of the near-flat income tax combined with regressive property and sales taxes.
Immigration Cost Burden vs. Income Tax Share — The Double Squeeze
Source: ITEP / BU Study (immigration cost burden); IRS SOI (federal income tax share). The working class bears a disproportionate share of immigration costs, while on ITEP's figures the upper middle class bears the heaviest MA state+local burden relative to income.
Top 1% share of federal income tax paid by MA filers
38.2%
~32,800 people paying more than 2.46M people combined
Top 5% share of federal income tax paid by MA filers
58.8%
~164,000 people
Bottom 50% share of federal income tax paid by MA filers
3.9%
~1.64 million filers, avg income $32,188
Top 1% share of all capital gains
76.0%
Investment & wealth activity is even more concentrated
Share of federal income tax paid by Massachusetts filers · 2022 · Each bar = one group of filers
Top 1%
32,800 people
38.2%
avg $2.97M
Next 4% (1–5%)
131,000 people
20.6%
avg $508K
Next 5% (5–10%)
164,000 people
11.0%
avg $281K
Next 15% (10–25%)
492,000 people
15.7%
avg $169K
Next 25% (25–50%)
820,000 people
10.6%
avg $91K
50–75%
820,000 people
3.5%
avg $48K
Bottom 25%
820,000 people
0.4% · avg $16K
The top 5% of earners — about 164,000 people — pay 58.8% of the federal income tax paid by Massachusetts filers. The bottom half of all filers — 1.64 million people — pay just 3.9% combined. This isn't unusual nationally, but it makes Massachusetts unusually exposed: a tiny group of mobile, high-income residents is carrying most of the fiscal load. Massachusetts' own income tax is close to flat, so the state-tax concentration is real but less extreme than these federal shares.
Share of Federal Income Tax Paid by MA Filers, by Percentile Band (2022)
Source: IRS SOI In-State AGI Shares, 2022. Shares are of federal income tax paid by MA filers — IRS SOI does not publish state income tax. "Effective rate" = federal income tax paid ÷ AGI.
Top 1% Share of Federal Income Tax Paid by MA Filers — Trend 2013–2022
Source: IRS SOI In-State AGI Shares, 2013–2022. The 2021 spike reflects extraordinary capital gains realizations in a bull market year.
Economic Activity by Percentile — Capital Gains, Business Income, Dividends (2022)
Source: IRS SOI In-State AGI Shares. Capital gains = actual sales of stocks/property/business. S-corp = business ownership income. Dividends = investment portfolio income.
Effective Federal Tax Rate by Band — What % of Income Goes to Federal Income Tax? (2022)
Source: IRS SOI In-State AGI Shares, tax year 2022. Federal income tax only — it does not include Massachusetts income tax, property tax or sales tax. This caption previously said the reverse.
Complete Breakdown — Every Percentile Band (Tax Year 2022)
Who
How Many
Avg Income
% of All MA Income
% of Federal Income Tax Paid by MA Filers
Effective Federal Tax Rate
Top 1%
32,795
$2,972,000
23.1%
38.2%
27.3%
Next 4% (1–5%)
131,178
$508,000
15.8%
20.6%
21.6%
Next 5% (5–10%)
163,974
$281,000
10.9%
11.0%
16.7%
Next 15% (10–25%)
491,920
$169,000
19.8%
15.7%
13.1%
Next 25% (25–50%)
819,866
$91,000
17.8%
10.6%
9.9%
50–75%
819,867
$48,000
9.3%
3.5%
6.2%
Bottom 25%
819,866
$16,000
3.2%
0.4%
2.0%
All MA Filers
3,279,466
$128,000 avg
100%
100%
—
Source: IRS SOI In-State AGI Shares, tax year 2022. Effective rate = federal income tax paid ÷ AGI. IRS SOI reports federal liability and does not publish state income tax, so this column is not a Massachusetts rate: the top-1% figure of 27.3% exceeds Massachusetts' 9% top statutory rate, and the share column beside it is a share of federal tax paid by MA filers, not of MA collections. For MA state tax at the rates on this page, the top 1% averages — — an effective —.
Economic Activity Concentration — Top 1% and 10% Share of Key Income Types (2022)
Income Type
What It Represents
Top 1% Share
Top 5% Share
Top 10% Share
Capital Gains
Profits from selling stocks, property, businesses
76.0%
88.6%
93.1%
S-Corp / Business Income
Income from owning a business
69.8%
87.7%
92.9%
Dividends
Income from investment portfolios
45.3%
64.6%
74.1%
Interest Income
Savings, bonds, lending
51.8%
65.4%
72.6%
Salaries & Wages
Regular employment income
11.6%
27.1%
38.9%
Total AGI
All income combined
23.1%
38.9%
49.8%
Source: IRS SOI In-State AGI Shares, 2022.
What Income Level Puts You in Each Group? — Massachusetts 2022
Percentile Group
Income Range
Average Income
% of Federal Income Tax Paid by MA Filers
Plain English
Top 1%
Over $891,118
$2,972,000
38.2%
~32,800 people. Mostly business owners, investors, senior executives, high-paid professionals.
~164,000 people. Dual-income professional households, mid-level executives, specialists.
Top 10–25%
$127,196 – $232,957
$169,000
15.7%
~492,000 people. Upper-middle class. Managers, engineers, teachers with dual incomes.
Top 25–50%
$65,279 – $127,196
$91,000
10.6%
~820,000 people. Middle class. Nurses, tradespeople, office workers, single earners.
50–75%
$32,457 – $65,279
$48,000
3.5%
~820,000 people. Working class. Retail, food service, part-time workers, young earners.
Bottom 25%
Under $32,457
$16,000
0.4%
~820,000 people. Very low income, part-year workers, retirees on fixed income, students.
Source: IRS SOI In-State AGI Shares, tax year 2022.
How Have the Income Thresholds Changed Over Time? (2013–2022)
Minimum income needed to reach each percentile group. Rising floors mean you need to earn more each year just to stay in the same relative position.
Year
Top 1% floor
Top 5% floor
Top 10% floor
Top 25% floor
Top 50% floor (median)
2013
$579,524
$232,456
$162,639
$93,965
$47,611
2014
$632,541
$245,221
$169,921
$97,347
$49,179
2015
$649,796
$253,701
$175,492
$100,185
$50,670
2016
$655,689
$258,706
$178,580
$101,497
$51,641
2017
$698,256
$271,807
$186,479
$105,178
$53,560
2018
$739,998
$287,128
$195,224
$109,361
$55,740
2019
$765,791
$298,602
$201,983
$112,732
$57,700
2020
$777,052
$299,165
$201,228
$110,189
$56,192
2021
$988,253
$348,886
$226,688
$122,039
$62,005
2022
$891,118
$349,399
$232,957
$127,196
$65,279
Source: IRS SOI In-State AGI Shares, 2013–2022.
Income Thresholds Over Time — All Percentile Floors (2013–2022)
Source: IRS SOI In-State AGI Shares.
MA Median Filer Income vs. Top 1% Floor (2013–2022)
Source: IRS SOI In-State AGI Shares.
📋 What This Actually Means — And What It Doesn't
The top 1% paying 38% of the federal income tax collected from MA filers isn't unique to Massachusetts — this pattern exists in most high-income states. What makes Massachusetts unusual is the combination: an unusually mobile top-1% (many work in finance, tech, and biotech — sectors with location flexibility), an unusually high new surtax that directly targets them, and an unusually volatile revenue base (76% of capital gains concentrated in 33,000 people whose investment portfolios swing with markets).
The bottom 50% aren't "doing nothing" — they contribute enormously through sales taxes, property taxes (via rent), payroll taxes, and as workers. But for state income tax specifically, the fiscal math is stark: lose — of those 32,800 top earners, and Massachusetts loses as much income tax revenue as it would gain from about — average-income filers — at the file's own $128,000 average and 5% flat rate. (This previously read 200,000, which would be — of tax, roughly 3.5× the figure it was equated to.)