2026 tax year · Massachusetts
Services and task work taxes in Massachusetts
TaskRabbit, Rover, Upwork and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is mileage, in Massachusetts that gap is worth $2,367 in tax.
Take a driver who grossed $34,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the services and task work page $9,030 comes off and $24,970 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 | $3,528 |
| Federal income tax | $568 |
| Massachusetts income tax | $1,160 |
| Total tax | $5,257 |
| Effective rate on gross | 15.5% |
Earning more in Massachusetts
A single filer taking the standard deduction, standard mileage method, 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 | $11,000 | $1,485 | $9,515 | $442 | $1,787 | 16.2% |
| Steady side income | $34,000 | $4,455 | $29,545 | $1,373 | $6,456 | 19.0% |
| Full-time | $55,000 | $7,425 | $47,575 | $2,211 | $11,384 | 20.7% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Working across a Massachusetts line
Services income is sourced to where the work was physically done. A job over the line can create a filing obligation in that state even for a single afternoon, and reciprocity agreements do not help, they cover wages paid by an employer, not self-employment income.
On $24,970 of profit, what the states around Massachusetts would charge:
| State | Its tax | vs Massachusetts |
|---|---|---|
| New Hampshire | No income tax | −$1,249 |
| Vermont | $836 | −$412 |
| Connecticut | $874 | −$375 |
| Rhode Island | $936 | −$312 |
| New York | $1,048 | −$200 |
- New Hampshire has no income tax at all, so the same work done there costs $1,249 less in state tax than it does in Massachusetts.
- Vermont would take $412 less, $836 against Massachusetts's $1,249.
- Connecticut would take $375 less, $874 against Massachusetts's $1,249.
- Rhode Island would take $312 less, $936 against Massachusetts's $1,249.
- New York would take $200 less, $1,048 against Massachusetts's $1,249.
Services and task work tax questions in Massachusetts
How much should a Massachusetts contractor set aside?
About 15.5% of gross on the $34,000 example, $5,257 across self-employment tax, federal income tax and $1,160 to Massachusetts. Set aside from each payout rather than finding it in April.
Does the $34,000 on my 1099-NEC match what Massachusetts taxes?
No. Massachusetts taxes profit, not gross. After $9,030 of deductions the taxable figure is $24,970, so the Massachusetts bill is $1,160 rather than what gross alone would suggest.