How to File LLC Taxes in Massachusetts (2026)
A single-member Massachusetts LLC reports its income on Form 1 or Form 1-NR/PY. A multi-member LLC files Form 3. An S-corp election files Form 355S, and a C-corp election files Form 355. All four go to the Massachusetts Department of Revenue.
Massachusetts taxes pass-through income at a flat 5% rate. A 4% surtax kicks in once your taxable income crosses the state's inflation-adjusted threshold.
This page walks through each LLC type's state form and rate. It also covers the federal layer that flows into your Massachusetts return, plus the pass-through entity excise election that lets partnerships and S-corps deduct state tax at the entity level.
Quick Summary
- Confirm your LLC's classification first. The form, agency and rate all depend on how the IRS taxes your LLC.
- Watch the surtax threshold if your income is high. It only taxes income above that line, leaving the rest at the regular rate.
- Talk to a CPA before electing S-corp or PTE excise status. Both choices lock in for the year and depend on your income mix.
Massachusetts LLC Tax Summary
The table below lines up each LLC classification with its federal form, its Massachusetts form, the agency that receives it, and the deadline and rate that apply.
| LLC Type | Federal Form | State Form | Filed With | Filing Deadline & Tax Rate |
|---|---|---|---|---|
| Single-member LLC | Schedule C (Form 1040) | Form 1 / Form 1-NR/PY | Massachusetts DOR | April 15, 2026 · 5% (9% over $1,107,750) |
| Multi-member LLC | Form 1065 | Form 3 | Massachusetts DOR | March 16, 2026 · pass-through, no entity-level tax |
| S-Corp election | Form 1120-S (Form 2553 to elect) | Form 355S | Massachusetts DOR | March 16, 2026 · $456 min, 2–3% on receipts ≥$6M |
| C-Corp election | Form 1120 | Form 355 | Massachusetts DOR | April 15, 2026 · 8% + $2.60/$1,000, $456 min |
Massachusetts state taxes by LLC type
Massachusetts taxes LLCs as pass-through entities by default. Your federal classification decides both your Massachusetts form and your rate. The state simply follows your federal election.
See how to file LLC taxes for a walkthrough of that federal choice. It covers the default rules for single-member and multi-member LLCs before you file in Massachusetts.
1. Massachusetts income tax rate for tax year 2026
Massachusetts charges a flat 5% rate on most personal income. That includes pass-through LLC income you report on your individual return [1].
Income above the surtax threshold, $1,107,750 for tax year 2026, pays an extra 4% on the amount over that line. That's a combined 9% on income above the threshold [2].
2. Single-member LLC: Form 1
A single-member Massachusetts LLC is taxed like a sole proprietorship. You report your LLC's income on federal Schedule C. Then you carry that income onto Massachusetts Form 1 if you're a resident, or Form 1-NR/PY if you're a nonresident or part-year resident.
Both are due April 15, 2026, covering your 2025 calendar-year return. Both go to the Massachusetts DOR, the agency that handles your ongoing tax filings after your LLC is formed.
3. Multi-member LLC: Form 3
A multi-member LLC files federal Form 1065 to report its income to the IRS. It then files Form 3 with the Massachusetts DOR to report that same income at the state level. The LLC itself doesn't pay Massachusetts income tax.
Each member picks up their share on their own Form 1 or Form 1-NR/PY. File Form 3 with the DOR by March 16, 2026 for your 2025 calendar-year return.
4. S-corp election: Form 355S
Electing S-corp status means filing federal Form 1120-S with the IRS, using Form 2553 to make the election, then filing Massachusetts Form 355S with the DOR. That state filing is due March 16, 2026 for tax year 2025.
The state also charges a non-income measure of $2.60 per $1,000 of the corporation's tangible property or net worth. Combined with any income-measure excise, the total can't be less than $456.
Once gross receipts reach $6 million, Massachusetts adds an income-measure excise too. That's 2% of net income between $6 million and $9 million, and 3% once receipts hit $9 million.
5. C-corp election: Form 355
A C-corp election turns your LLC into a separate taxpayer for Massachusetts purposes. It files federal Form 1120 with the IRS and Massachusetts Form 355 with the DOR, taxed at 8% of net income apportioned to the state.
It also charges $2.60 per $1,000 of tangible property or net worth, added on top of the income measure. Combined, the excise can't be less than $456.
File Form 355 with the DOR by April 15, 2026 to cover your 2025 tax year. This yearly excise is separate from what you paid to form the LLC. See how much it costs to form an LLC in Massachusetts for the full fee picture.
Federal taxes Massachusetts LLC owners pay
Every Massachusetts LLC owner taxed as a pass-through pays federal self-employment tax on net earnings. That rate is currently 15.3%, covering Social Security and Medicare [3]. Massachusetts doesn't charge a separate state-level self-employment tax on top of that.
If you expect to owe $1,000 or more in tax for the year, the IRS wants quarterly estimated payments. Those are due April 15, June 15, September 15 and January 15 of the following year [4].
Massachusetts mirrors that schedule with Form 1-ES for individual filers and Form 355-ES for corporate filers. The state's own installment dates can shift a day or two when the 15th lands on a weekend.
Massachusetts pass-through entity tax (PTE) election
Massachusetts lets eligible partnerships and S-corps elect a 5% entity-level excise on their Massachusetts income. This runs under chapter 63D, filed on Form 63D-ELT [5].
Paying the excise at the entity level lets the business deduct it as a federal expense. That works around the federal $10,000 cap on the state and local tax deduction for individual owners.
Single-member LLCs and C-corps aren't eligible. The excise only applies to entities that already pass income through to individual members who can use the credit. Only partnerships, S-corps, and certain trusts can elect.
Each qualified member then claims a credit worth 90% of their share of the PTE excise the entity paid. That credit applies against their own Massachusetts personal income tax.
The election is made annually and is irrevocable once filed. You make it on a timely filed Form 3, 355S or Form 2, then file Form 63D-ELT electronically through MassTaxConnect.
What is deductible for a Massachusetts LLC
The PTE excise credit above is the main state-level break available to a Massachusetts LLC's owners. The federal qualified business income deduction is a separate, federal-only benefit and doesn't appear on your Massachusetts return.
Other Massachusetts taxes that may apply
Beyond income tax, a Massachusetts LLC may owe sales tax, payroll taxes or industry-specific excise taxes. It depends on what it sells and whether it has employees.
1. Sales and use tax
Massachusetts charges a 6.25% sales and use tax on the sale, rental or use of tangible personal property. That includes certain fuel and telecommunications services.
Register with the DOR through MassTaxConnect before you start collecting. Then file Form ST-9 on a schedule the state sets by how much tax you collect: annually, quarterly or monthly.
2. Employer taxes
If your LLC has employees, register with the DOR and withhold Massachusetts income tax from wages at 5.0% under the current Circular M tables [6]. Form M-941's filing frequency depends on how much you withhold: annually, quarterly or monthly.
You'll also register with the Department of Unemployment Assistance and pay unemployment insurance contributions on the first $15,000 of each employee's wages per year. The DUA assigns your contribution rate based on your account's experience rating [7].
3. Industry and local taxes
The Massachusetts DOR also collects taxes tied to certain industries and localities. These include the motor fuel excise, the cigarette and tobacco tax and the sales tax on restaurant meals.
It also charges the alcoholic beverage excise, the marijuana retail sales tax, and the room occupancy excise tax on short-term rentals and hotel stays.
Check with the DOR if your LLC operates in one of these industries. Each one carries its own registration and filing rules.
FAQs
Do I Need to File a Massachusetts State Tax Return for My LLC?
Yes, you need to file a Massachusetts state tax return for your LLC's income. As a pass-through, your LLC doesn't pay Massachusetts income tax directly. Members report their share on Form 1, Form 1-NR/PY or Form 3, or the entity's own corporate return if you elected S-corp or C-corp status.
Do Foreign LLCs Doing Business in Massachusetts Pay Massachusetts Taxes?
Yes, foreign LLCs doing business in Massachusetts pay Massachusetts taxes on the income they earn in the state. They file the same state forms as a domestic LLC of the same classification, plus any nonresident member returns their owners need.
What Happens if a Massachusetts LLC Elects the PTE Excise?
When a Massachusetts LLC elects the PTE excise, its owners get a state tax break. It mainly helps owners who would otherwise lose part of their state tax deduction to the federal SALT cap. Check with a CPA before electing.
References:
1. https://www.mass.gov/info-details/massachusetts-tax-rates
2. https://www.mass.gov/info-details/massachusetts-4-surtax-on-taxable-income
3. https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
4. https://www.irs.gov/faqs/estimated-tax
5. https://www.mass.gov/info-details/elective-pass-through-entity-excise
6. https://www.mass.gov/doc/massachusetts-circular-m-income-tax-withholding-tables-at-50-effective-january-1-2026/download
7. https://www.mass.gov/info-details/learn-about-ui-contribution-rates
