Massachusetts · 5% income tax plus 4% surtax
CPA, bookkeeping & fractional CFO services in Massachusetts
Massachusetts has a flat 5% personal income tax plus a 4% surtax on income above about one million dollars, which makes planning around business sales and high-income years especially important. CPA Torrance is a CPA-led firm based in Torrance, California that provides bookkeeping, tax planning, tax filing and fractional CFO support to Massachusetts businesses remotely.
- Serving all of Massachusetts remotely
- Massachusetts Form 355, 355S and 3 tracked for you
- Monthly reporting included
In short
How does the Massachusetts millionaire surtax affect business owners?
Massachusetts adds a 4% surtax on taxable income above an annual threshold of about one million dollars, adjusted for inflation. For business owners, a large sale, bonus or high-profit year can push income over the threshold. Timing income, using installment sales and the Massachusetts pass-through entity excise can reduce the impact.
- State income tax
- 5% + 4% surtax
- State sales tax
- 6.25%
- Key business tax
- Corporate excise
- How we serve
- Remotely, statewide
Services in Massachusetts
What we do for Massachusetts business owners
From Boston and Cambridge biotech and tech companies to Worcester manufacturers and Cape Cod hospitality businesses, Massachusetts owners need careful planning around the surtax. We provide monthly bookkeeping, federal and Massachusetts tax planning, filings and CFO reporting from one coordinated team.
Bookkeeping Services
- Monthly reconciliations in QuickBooks Online
- Massachusetts sales and meals tax tracking
- Payroll and contractor payment review
- Monthly profit and loss and balance sheet
- Catch-up and clean-up bookkeeping
Tax Planning & Strategy
- Entity and S corporation review
- Millionaire surtax timing strategies
- Federal and state estimated payments
- Multi-state income review
- Year-end tax planning meeting
Tax Filing & Compliance
- Federal business returns (1120, 1120S, 1065)
- Massachusetts Form 355, 355S and Form 3 returns
- Owner individual returns
- IRS and state notice help
- Due-date tracking for every filing
Fractional CFO Services
- Cash-flow forecasts
- Budget versus actual reviews
- Margin and pricing analysis
- Lender- and investor-ready reporting
- Growth and hiring plans
Massachusetts tax planning
Planning around Massachusetts taxes
Massachusetts planning focuses on the flat rate, the surtax, the pass-through entity excise and federal planning.
Book a 15-min callSurtax timing
Spreading income over several years can keep it under the surtax threshold. We plan sales and bonuses carefully.
PTE excise
Massachusetts offers an elective pass-through entity excise. We model the federal benefit.
Startup equity
Founders with qualified small business stock or options need federal and Massachusetts planning together.
Who we work with
Massachusetts industries we serve
We work with owner-led businesses across Massachusetts, with experience in the industries that drive the state economy.
Biotech and life sciences
Research companies with grants, burn and investor reporting.
Technology startups
Software companies around Boston and Cambridge.
Healthcare practices
Medical and dental practices across the state.
Hospitality and tourism
Restaurants and Cape and Islands businesses.
E-commerce sellers
Online brands with Massachusetts sales tax, inventory and multi-channel books.
Professional firms
Consultants, agencies and law firms billing by the hour, project or retainer.
Why Massachusetts businesses choose CPA Torrance
Areas we cover
Serving businesses across Massachusetts
Businesses in Boston, Cambridge, Worcester, Springfield, Lowell work in biotech, higher education, technology, healthcare and finance. CPA Torrance helps Massachusetts businesses, including those owned from out of state, stay compliant and organized through remote meetings.
- Boston
- Cambridge
- Worcester
- Springfield
- Lowell
- Newton
- Quincy
- Somerville
- Framingham
- Burlington
- Video meetings on your schedule
- Secure document portal for statements and returns
- Cloud accounting you can see any time
FAQ
Massachusetts business tax and accounting questions
Not covered here? A 15-minute call gets you a straight answer for your situation.
What financial services can CPA Torrance provide to Massachusetts businesses?
We provide monthly bookkeeping, federal and Massachusetts tax planning, business tax filing and fractional CFO services. Everything runs from one set of books, so your bookkeeper, CPA and CFO advisor work from the same numbers.
Does the surtax apply to selling my business?
It can. A gain on the sale of a business counts toward taxable income for the surtax. Installment sales and timing may reduce how much is taxed at the higher rate.
Does Massachusetts have a pass-through entity tax?
Yes. Massachusetts offers an elective pass-through entity excise that may let owners deduct state tax federally.
Do Massachusetts S corporations pay entity tax?
Some do. S corporations with high gross receipts may owe an entity-level excise, so we check the thresholds each year.
Can CPA Torrance work with Massachusetts businesses remotely?
Yes. We serve businesses across Massachusetts, including Boston, Cambridge, Worcester, Springfield, Lowell, Newton, Quincy, Somerville, Framingham and Burlington, through video meetings, a secure document portal and cloud accounting you can see any time. Our office is in Torrance, California.
How do I get started?
Book a 15-minute call or request a free financial assessment. We review your books, tax position and systems and recommend the right mix of support for your Massachusetts business.
Get your Massachusetts books and taxes in order.
Book a call to review bookkeeping and tax planning for your Massachusetts business.