Massachusetts LLC Tax Filing: Rates & Forms (2026)

Q: How is a Massachusetts LLC taxed?

By default the IRS and Massachusetts treat a single-member LLC as a disregarded entity and a multi-member LLC as a partnership, so profits pass through to the members and are taxed at the 5.0% Massachusetts personal income rate. An LLC can instead elect to be taxed as an S corporation or C corporation and pay the corporate excise.

Q: Does a Massachusetts LLC pay a franchise tax?

A standard pass-through LLC pays no franchise tax; its members simply pay the 5.0% personal income tax on their share of profits. An LLC that elects corporate taxation pays the Massachusetts corporate excise, which has a minimum of $456 per year even in a loss year.

Q: What is the Massachusetts corporate excise rate?

The corporate excise is 8.0% of net income apportioned to Massachusetts plus $2.60 per $1,000 of taxable Massachusetts tangible property or net worth, with a minimum excise of $456. It applies to LLCs that elect to be taxed as corporations and to corporations.

Q: Does a Massachusetts LLC need to collect sales tax?

If your LLC sells taxable goods or certain services, you must register through MassTaxConnect and collect the 6.25% Massachusetts sales and use tax, then file returns (typically Form ST-9) and remit the tax to the Department of Revenue on the schedule the DOR assigns.

Q: When are Massachusetts business tax returns due?

The individual Form 1 and the C-corporation Form 355 are generally due April 15, while the partnership Form 3 and S-corporation Form 355S are generally due March 15, matching the federal deadlines. Estimated payments may be required during the year.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

By default, a Massachusetts LLC is a pass-through entity: its profits are reported on the members' returns and taxed at the 5.0% Massachusetts personal income tax rate on Form 1. An LLC that elects to be taxed as a corporation instead pays the 8.0% corporate excise with a $456 minimum, and any LLC selling taxable goods collects the 6.25% sales and use tax.

Quick Answer

Default federal tax: Disregarded entity (1 member) or partnership (2+ members)
State income tax: 5.0% Massachusetts personal income tax on pass-through profit
Millionaire surtax: Additional 4% on taxable income over $1 million (indexed)
Corporate excise: 8.0% of net income + $2.60/$1,000 net worth; $456 minimum
Sales & use tax: 6.25% via MassTaxConnect (Form ST-9)
Agency: Massachusetts Department of Revenue (DOR)

Federal Default Classification

An LLC is not a federal tax category of its own; the IRS taxes it under one of the existing classifications. By default, a single-member LLC is a disregarded entity, meaning its income and expenses are reported directly on the owner's return (usually Schedule C of Form 1040), and a multi-member LLC is a partnership that files IRS Form 1065 and issues Schedule K-1s to members. Massachusetts follows the federal classification, so an LLC that is a pass-through federally is a pass-through in Massachusetts too. This means the LLC itself generally pays no state income tax at the entity level; instead, the members report their share of profit on their own returns. For the broader picture, see business tax and how to file business taxes.

Pass-Through Tax: 5.0% Personal Income

When your LLC is taxed as a disregarded entity or partnership, its profit "passes through" to the members, who report it on the Massachusetts personal income tax return, Form 1 (or Form 1-NR/PY for nonresidents and part-year residents). Massachusetts taxes most income at a flat 5.0% rate. A separate 4% surtax - the voter-approved "millionaire tax" - applies to Massachusetts taxable income above $1 million, a threshold that is indexed for inflation each year. A multi-member LLC also files an informational Form 3, the Massachusetts partnership return, which reports the LLC's income and how it is allocated among members but does not itself pay income tax. Members who actively work in the business also owe federal self-employment tax and may need to make quarterly estimated payments.

Corporate Election and the Corporate Excise

An LLC can change how it is taxed by filing an election with the IRS: Form 8832 to be taxed as a C corporation, or Form 2553 to be taxed as an S corporation. Once an LLC is taxed as a corporation federally, Massachusetts taxes it under the corporate excise in M.G.L. c.63. The corporate excise has two parts: 8.0% of net income apportioned to Massachusetts, plus $2.60 per $1,000 of the corporation's taxable Massachusetts tangible property or taxable net worth. There is a minimum excise of $456 that every corporation owes even in a year with no profit. A C-corporation LLC files Form 355, and an S-corporation LLC files Form 355S. Weigh the trade-offs in LLC vs S-corp tax and Form 2553 explained before you elect.

S Corporations and the Massachusetts Sting Tax

Massachusetts recognizes the federal S election, so an LLC taxed as an S corporation is generally a pass-through for state income tax, with shareholders reporting their share on Form 1 at 5.0%. However, Massachusetts imposes an additional entity-level excise - often called the "sting tax" - on S corporations with larger receipts. Under M.G.L. c.63, §32D, an S corporation with total receipts of $6 million or more owes a corporate-level excise on its net income in addition to the minimum excise, with the rate stepping up at the $9 million level. Because the exact tiered rates are set by statute and adjusted over time, confirm the current rate on the Department of Revenue's corporate excise guidance before relying on a number. Smaller S-corporation LLCs below the $6 million threshold generally owe only the $456 minimum excise plus pass-through tax at the member level. See S-corp vs C-corp and LLC or S-corp.

Sales and Use Tax: 6.25%

If your LLC sells taxable tangible goods or certain taxable services in Massachusetts, you must register to collect the 6.25% Massachusetts sales and use tax. You register through MassTaxConnect (using Form TA-1) before making sales, then file sales tax returns - typically Form ST-9 - and remit the tax on the schedule (monthly, quarterly, or annually) that the Department of Revenue assigns based on your tax volume. Use tax at the same 6.25% rate applies to taxable items you buy for use in Massachusetts on which no sales tax was collected. Registering for sales tax is free. See business license in Massachusetts for related permits and how to get an EIN, which you generally need before registering.

Employer Withholding and Payroll

If your LLC has employees, it must register as an employer through MassTaxConnect and withhold Massachusetts income tax from wages, remitting it with the withholding return (Form M-941) on the schedule the DOR assigns. You will also handle federal payroll taxes and contribute to the Massachusetts unemployment insurance and Paid Family and Medical Leave programs. An LLC taxed as an S corporation that pays its owner-employees must run them through payroll and pay reasonable compensation as W-2 wages before taking distributions. A federal EIN is required for any LLC with employees. For the mechanics of federal payroll and income tax, see how to file business taxes.

Massachusetts LLC Tax Forms at a Glance

The table below maps each way an LLC can be taxed to the federal and Massachusetts returns it files. The correct set of forms depends entirely on the LLC's tax classification, not on the LLC label itself.

LLC classification	Federal return	Massachusetts return
Single-member (disregarded)	Schedule C with Form 1040	Form 1 (personal income)
Multi-member (partnership)	Form 1065 + K-1s	Form 3 (partnership) + members' Form 1
S-corporation election	Form 1120-S + K-1s	Form 355S + members' Form 1
C-corporation election	Form 1120	Form 355 (corporate excise)
Sales of taxable goods	-	Form ST-9 (6.25% sales/use)
Employer withholding	Forms 941 / 940	Form M-941

Due Dates and Estimated Payments

Massachusetts largely mirrors the federal calendar. For a calendar-year filer, the individual Form 1 and the C-corporation Form 355 are generally due April 15, while the partnership Form 3 and the S-corporation Form 355S are generally due March 15. Corporations must make estimated excise payments during the year, and individual members with significant pass-through income should make quarterly estimated payments to avoid underpayment penalties. Sales tax and withholding returns follow their own monthly, quarterly, or annual schedules assigned by the DOR. Confirm the current-year dates on the Department of Revenue's due dates page, since a deadline that falls on a weekend or holiday shifts to the next business day. See when are business taxes due.

Frequently Asked Questions

How is a Massachusetts LLC taxed?

By default, a single-member LLC is disregarded and a multi-member LLC is a partnership, so profits pass through and are taxed at the 5.0% Massachusetts personal income rate. An LLC can instead elect S- or C-corporation treatment and pay the corporate excise.

Does a Massachusetts LLC pay a franchise tax?

A standard pass-through LLC pays no franchise tax; members pay the 5.0% personal income tax. An LLC taxed as a corporation pays the corporate excise, with a $456 minimum even in a loss year.

What is the Massachusetts corporate excise rate?

8.0% of net income apportioned to Massachusetts plus $2.60 per $1,000 of taxable property or net worth, with a $456 minimum. It applies to LLCs that elect corporate taxation.

Does a Massachusetts LLC need to collect sales tax?

If it sells taxable goods or services, yes - register through MassTaxConnect and collect the 6.25% sales and use tax, filing Form ST-9 on the schedule the DOR assigns.

When are Massachusetts business tax returns due?

Form 1 and the C-corp Form 355 are generally due April 15; the partnership Form 3 and S-corp Form 355S are generally due March 15, matching the federal deadlines.

Sources

Massachusetts DOR - Massachusetts Tax Rates (5.0% personal income; 4% surtax over $1M; 8.0% corporate excise; $2.60/$1,000; $456 minimum; 6.25% sales/use).
Massachusetts DOR - Department of Revenue (agency; returns and MassTaxConnect).
Massachusetts DOR - Register Your Business with MassTaxConnect (Form TA-1; sales, use, and withholding).
Massachusetts DOR - Sales and Use Tax (6.25%; Form ST-9).
Massachusetts General Laws - c.62 §4, Rates of tax for personal income.
Massachusetts General Laws - c.63 §39, Corporate excise rate and minimum.
Massachusetts General Laws - c.63 §32D, S corporation excise (sting tax).
Massachusetts General Laws - c.64H §2, Sales tax imposed at 6.25%.
IRS - Limited Liability Company (LLC) (default classification).
IRS - About Form 1065 (partnership return).
IRS - About Form 1120-S (S corporation).
IRS - About Form 2553 (S election).
IRS - About Form 8832 (entity classification election).
Cornell LII - 26 CFR 301.7701-3, entity classification (check-the-box).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Tax rates, thresholds, and forms change; verify current requirements with the Massachusetts Department of Revenue and the IRS before filing.