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Massachusetts · 2027 and beyond
Massachusetts in 2027 and beyond: what is already law, and what is still open
Question 5 failed: the revenue cap and refund law stay as written. The rate is 5% for 2026 and 2027. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from Massachusetts Department of Revenue sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by a Massachusetts practitioner
Question 5 failed: the revenue cap and refund law stay as written. The rate is 5% for 2026 and 2027. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
| Measure | Result | What it does |
|---|---|---|
| Question 5 | Rejected | Would have rewritten the Chapter 62F revenue cap, counting the 4% surtax, making refunds more likely. About 52% no. |
| Question 6 | Passed | Dedicates part of the existing sales tax on sporting goods to a conservation fund. No rate change. |
Unofficial returns. Results become final when the state certifies them, usually by early December.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | The rate is 5%, plus the 4% surtax above the indexed threshold. |
| Massachusetts does not follow the federal deductions for tips, overtime, seniors or car-loan interest (TIR 26-4). | |
| A pass-through entity may elect to pay the 4% surtax on its members’ behalf. | |
| Starting with tax year 2027 | The rate stays at 5%; the petition to cut it to 4% was struck from the ballot in June 2026. |
| The federal business expensing changes (section 179, production property and the interest limit) arrive. | |
| Paid family and medical leave benefits for medical leave change tax treatment January 1, 2027. | |
| 2028 and later, or conditional | The Legislature can amend the Chapter 62F refund formula on its own, and a Senate proposal was pending in the fall of 2026. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other Massachusetts articles.
The 2025 federal law and the Massachusetts return
Massachusetts ties its personal income tax to the Internal Revenue Code as of a fixed date and lists its own exceptions. The 2026 law brought in the business provisions on a delay and left the four individual deductions out.
That is the reason a change on the federal return, such as the deductions for tips, overtime and people 65 and older, may or may not show up on the Massachusetts return. The federal side is in The new deductions for tips, overtime and seniors.
What to watch
Any Chapter 62F change in the Legislature’s economic development bill. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your 2026 federal and Massachusetts returns, once filed, to set 2027 withholding and estimated payments against them
- Your last pay stub of 2026 and the first of 2027, to see whether withholding changed
- Any notice from the state about a 2027 rate, credit or filing change
Questions people ask
Does anything here change the Massachusetts return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
Are the election results final?
Not yet. The figures on this page are the unofficial returns. The state certifies results in the weeks after the election, and this page will be corrected if anything changes.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
Massachusetts, after the election
Question 5 failed: the revenue cap and refund law stay as written. The rate is 5% for 2026 and 2027.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Sources and where to check
- DOR: Massachusetts tax rates (updated December 30, 2025)
- DOR: Differences between Massachusetts and federal tax law for personal income (updated October 22, 2026)
- DOR: TIR 26-4 (June 23, 2026)
- DOR: TIR 26-1 (March 23, 2026)
- DOR alert: new guidance on taxes affected by the June supplemental budget
- DOR: Massachusetts personal income tax exemptions (updated October 30, 2026)
- DOR: Senior Circuit Breaker Tax Credit (2025 figures)
- Secretary of the Commonwealth: 2026 ballot questions
- Ballotpedia: Question 5, state tax revenue limit (secondary)
- WBUR: SJC strikes income tax rate petition from the ballot, June 18, 2026 (secondary)
- Tax Foundation, How Tax Policy Fared on the Ballot in 2026 (unofficial results)