Self-employed taxes and LLC costs in Massachusetts, 2026
Massachusetts charges some of the highest LLC filing fees in the country and a minimum excise on every S corporation.
Total tax on this income in 2026
$21,530
Put aside 25% of each payment · $5,382 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| Massachusetts income tax | $3,730 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 25.3% |
With an S corp election and a $34,000 salary, about $3,326 less tax (check it).
Computed by Radif Partners from IRS and Massachusetts agency documents read on October 15, 2026 · How we calculate
Massachusetts charges $500 for an LLC's Certificate of Organization and the same $500 for every annual report, so the first year costs $1,000 and five years $3,000, among the highest totals in the United States. Personal income tax is a flat 5 %: a single freelancer with $75,000 of profit owes $3,265 to the Commonwealth and $18,760 in total with federal income tax and self-employment tax. A 4% surtax applies on taxable income over $1,107,750 in 2026. If the LLC elects S corporation status, it also owes the corporate excise, at least $456 a year. In our model at $120,000 of profit with a $50,000 salary, the election still saves $4,766 after that excise and $2,000 of payroll costs. There are no city or county income taxes anywhere in the Commonwealth.
Massachusetts at a glance, 2026
| LLC filing fee | $500 |
| Annual Report | $500 a year |
| Income tax | flat 5 % |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $18,760 in all, $3,265 to Massachusetts |
No franchise tax, no minimum tax on the LLC itself, and yet Massachusetts is one of the most expensive places to keep one. The fee schedule in 950 CMR 112 sets $500 for the Certificate of Organization and $500 for each annual report (950 CMR 112), due on or before the anniversary of the original filing. Ten years of fees reach $5,500. A consultant who needs no liability shield beyond insurance can operate as a sole proprietor and pay none of it; the sole proprietorship vs LLC page sets out what the entity adds.
S corp or LLC in this state
S corp saves
$4,694
| Salary used (42%) | $50,400 |
| Massachusetts entity tax | $456 |
The S corporation excise
An S corporation in Massachusetts pays the corporate excise on its non-income measure, $2.60 per $1,000 of tangible property or net worth, with a minimum of $456 (Massachusetts DOR, tax rates). For a service business with little property, the minimum is what applies. An entity-level income measure exists too, but only once total receipts reach $6 million. The model therefore adds $456 to the S corp side. At $120,000 of profit the election still comes out $4,766 ahead of the default LLC; at lower profits the excise, the payroll costs and the $500 report weigh more. Run your own salary in the S corp savings calculator.
A flat rate with a surtax above a million
Massachusetts taxes most income at 5 %, with no brackets. On $120,000 of profit a single filer pays $5,356. The 4% surtax, approved by voters in 2022, applies to taxable income over $1,107,750 for 2026, up from $1,083,150 in 2025. Short-term capital gains are taxed at 8.5% and collectibles at 12%, per the same DOR page. No city or town in the Commonwealth levies an income tax.
Two elective pass-through excises
The chapter 63D excise, in place since 2021, lets a partnership or S corporation pay 5% on its qualified members' income. For tax years beginning on or after January 1, 2026, chapter 63E adds a second excise of 4% on the members' share above the surtax threshold, which lets owners deduct the surtax at the entity level (Massachusetts DOR, elective PTE excise). Both are tied to the federal SALT cap and end if it expires.
Estimated payments start when you expect to owe more than $400 on income without withholding, and anyone subject to the surtax must file and pay electronically (Form 1-ES 2026). The due dates page lists the four quarterly dates.