Severance Pay in Massachusetts: Calculator & 2026 Guide
Calculate your estimated severance package in Massachusetts. Massachusetts state tax is 9.0%, for a combined 31.0% withholding rate.
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Estimate your severance package based on your salary, years of service, and industry
Massachusetts Severance Pay Laws
Massachusetts has up to 9% state tax (5% + 4% surtax on income over $1M). Severance over $1M faces higher rates.
How Severance Is Taxed in Massachusetts
| Tax Type | Rate | On $50,000 Severance |
|---|---|---|
| Federal (Supplemental) | 22.0% | $11,000 |
| Massachusetts State Tax | 9.0% | $4,500 |
| Total Withholding | 31.0% | $15,500 |
| You Keep | 69.0% | $34,500 |
Massachusetts Severance by Industry
Example: 5 years of service, $75,000 salary, individual contributor in Massachusetts
| Industry | Weeks/Year | Gross Estimate | After Tax |
|---|---|---|---|
| Technology | 2-4 | $21,635 | $14,928 |
| Finance & Banking | 2-4 | $21,635 | $14,928 |
| Healthcare | 1-3 | $14,423 | $9,952 |
| Retail | 0.5-2 | $7,212 | $4,976 |
| Manufacturing | 1-3 | $14,423 | $9,952 |
| Consulting & Professional Services | 2-4 | $21,635 | $14,928 |
| Government | 1-2 | $7,212 | $4,976 |
| Nonprofit | 1-2 | $10,817 | $7,464 |
| Other Industry | 1-3 | $14,423 | $9,952 |
How to Negotiate Severance in Massachusetts
In Massachusetts, the standard federal WARN Act applies — 60 days notice for layoffs of 50+ employees at companies with 100+ workers.
- ✓ Ask for more weeks: Counter with 50% more than the initial offer
- ✓ Negotiate COBRA: Employer-paid health coverage for 6-12 months
- ✓ Get a written reference: Protect your future career prospects
- ✓ Review non-compete clauses: Negotiate restrictions before signing
- ✓ Consult a lawyer: Employment attorneys often negotiate 2-5x the original offer
Think Your Severance Is Too Low?
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Massachusetts Severance Pay FAQ
Is severance pay required in Massachusetts?▼
No, Massachusetts does not have a state law requiring employers to provide severance pay. However, the federal WARN Act may require 60 days notice or pay in lieu of notice for large layoffs.
How is severance taxed in Massachusetts?▼
Severance in Massachusetts is taxed at 31.0% combined — 22% federal supplemental rate plus 9.0% Massachusetts state income tax. On a $50,000 severance, you'd take home approximately $34,500.
What is the WARN Act in Massachusetts?▼
The federal WARN Act applies in Massachusetts, requiring employers with 100+ employees to give 60 days advance notice for mass layoffs of 50+ workers. Failure to provide proper notice can result in back pay for the notice period.
Can I collect unemployment and severance in Massachusetts?▼
This depends on how your severance is structured. Some Massachusetts workers can receive both simultaneously, while others may see a delay in unemployment benefits. If severance is paid as a lump sum, it's less likely to delay unemployment than if paid as continued salary. Contact Massachusetts's unemployment office for specific guidance.
Major Employers in Massachusetts
Severance Pay in Nearby States
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