2026 tax year · Massachusetts
Rental host taxes in Massachusetts
Airbnb, Turo and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Massachusetts that gap is worth $2,722 in tax.
Take a driver who grossed $39,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the rental host page $10,100 comes off and $28,900 is left as taxable profit. That profit is what Massachusetts and the IRS charge against.
What that leaves you owing in Massachusetts
Massachusetts taxes income at a flat 5% for 2026, applied on top of federal income tax and self-employment tax.
| Self-employment tax | $4,083 |
| Federal income tax | $861 |
| Massachusetts income tax | $1,343 |
| Total tax | $6,287 |
| Effective rate on gross | 16.1% |
Earning more in Massachusetts
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Massachusetts tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $13,000 | $0 | $13,000 | $604 | $2,441 | 18.8% |
| Steady side income | $39,000 | $0 | $39,000 | $1,812 | $9,009 | 23.1% |
| Full-time | $63,000 | $0 | $63,000 | $2,927 | $15,656 | 24.9% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Local taxes on a Massachusetts let
The income tax below is only part of it. Short-term lets attract occupancy, lodging or transient taxes levied by the city or county rather than Massachusetts, often at rates that dwarf the state income tax. Some platforms collect and remit them; some collect only part; in some places the host is on the hook entirely. That is a local question this calculator cannot answer, and it is the one hosts most often get wrong.
On $28,900 of profit, what the states around Massachusetts would charge:
| State | Its tax | vs Massachusetts |
|---|---|---|
| New Hampshire | No income tax | −$1,445 |
| Vermont | $968 | −$477 |
| Connecticut | $1,051 | −$395 |
| Rhode Island | $1,084 | −$361 |
| New York | $1,261 | −$185 |
- New Hampshire has no income tax at all, so the same work done there costs $1,445 less in state tax than it does in Massachusetts.
- Vermont would take $477 less, $968 against Massachusetts's $1,445.
- Connecticut would take $395 less, $1,051 against Massachusetts's $1,445.
- Rhode Island would take $361 less, $1,084 against Massachusetts's $1,445.
- New York would take $185 less, $1,261 against Massachusetts's $1,445.
Rental host tax questions in Massachusetts
How much should a Massachusetts host set aside?
About 16.1% of gross on the $39,000 example, $6,287 across self-employment tax, federal income tax and $1,343 to Massachusetts. Set aside from each payout rather than finding it in April.
Does the $39,000 on my 1099-NEC match what Massachusetts taxes?
No. Massachusetts taxes profit, not gross. After $10,100 of deductions the taxable figure is $28,900, so the Massachusetts bill is $1,343 rather than what gross alone would suggest.