CPA for Boston, MA Clients: Remote Tax, Payroll and Accounting

We are a Naperville, Illinois CPA firm and we serve Boston-area clients remotely; we do not have an office in Massachusetts. Massachusetts taxes income at a flat rate with a high-income surtax, and Boston adds city-level property taxes that affect homeowners and businesses alike. Here is what makes the Boston tax picture different.

Income tax and the 4% surtax

For both residents and nonresidents with Massachusetts income, the state rate is 5.00% on most income, including wages, interest and dividends, and long-term capital gains. Short-term gains are taxed at 8.5%, and long-term gains on collectibles at 12% with a 50% deduction. Income above the surtax threshold, $1,083,150 for 2025 and $1,107,750 for 2026, owes an additional 4%. That threshold is adjusted for inflation. Anyone selling a business or exercising options in one year should plan the timing. Estates valued under $2 million are not subject to the Massachusetts estate tax, but larger estates face marginal rates from 0.8% to 16%; see our estate and gift tax basics.

Paid Family and Medical Leave

Most Massachusetts employers must withhold and send PFML contributions. For 2026, employers with 25 or more covered individuals send 0.88% of eligible wages, which can be split: workers can bear the whole 0.18% family leave part plus up to 0.28% for medical leave, and the employer pays the other 0.42%. Employers with fewer than 25 covered individuals send 0.46% and owe no employer share. Under Chapter 101 of the Acts of 2026, employer contributions shift from medical to family leave starting January 1, 2027. Individual contributions stop at the Social Security wage cap. Our payroll services handle these filings, and our guide to paid family and medical leave compares state programs.

Business taxes

Massachusetts imposes a corporate excise of 8.0% on net income plus $2.60 per $1,000 of tangible property or net worth, with a $456 minimum. S corporations with total receipts of $6 million or more owe an additional net income tax of 2% (for receipts under $9 million) or 3% (for $9 million or more). Sales tax is 6.25%, and restaurant meals are taxed at 6.25% plus any local meals tax a city adopts. Our business formation service looks at how these interact when you set up an entity.

Boston property tax

Boston's fiscal year runs July 1 to June 30. A homeowner who occupies a home as a principal residence may qualify for the residential exemption, and for fiscal year 2027 the application deadline is April 1, 2027. Boston's rules were expanded so that owners who buy and record a deed between January 1 and June 30 may qualify for the current year. You can claim the exemption for only one property. Businesses owe personal property tax on tangible property such as furniture and equipment, and they file the State Tax Form 2/Form of List by March 1 without having to value the property.

The community

The Boston metro area has about 117,000 residents who identify as Asian Indian alone or in combination (roughly 2.4%), and Middlesex County, Massachusetts has about 71,500 (4.4%) according to the American Community Survey for 2020 to 2024. We help these families with the US-India tax treaty and with payroll and filing for small employers.

How we can help

We prepare federal and Massachusetts returns, model the surtax for years with large gains, run payroll with PFML, and keep books for Boston small businesses. Our Massachusetts page has more on state rules. Talk with a qualified professional about your own situation.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.