MassCPAs Releases 2026 Public Policy and State Competitiveness Report 

The Massachusetts Society of CPAs (MassCPAs) recently released the2026 Public Policy and State Competitiveness Report, a data-driven analysis of the Commonwealth’s economic climate and policy challenges. Now in its fourth year, the report reflects insights from nearly 200 CPAs representing Massachusetts businesses and taxpayers, offering a front-line perspective on the trends shaping the state’s economic future. 

While Massachusetts is a global leader in education, innovation and opportunity, the findings underscore growing competitive pressures across the Commonwealth. High costs, tax burdens and regulatory complexity continue to influence both individual and business decision-making, with outmigration and cautious economic outlooks emerging as key concerns. 
 
Key Findings:  

• Outmigration remains a concern: Massachusetts continues to see a net loss of income to lower-tax states, particularly among high-income taxpayers.
• Tax policy is a major driver: 90% of CPAs report tax policy influences relocation decisions, with the 4% surtax playing a significant role.  
   
• Competitiveness is slipping: 45% say Massachusetts is less competitive than peer states.
• Workforce and Talent Challenges: Nearly 70% of firms report that hiring is more difficult than in prior years, with talent shortages, rising salary expectations and burnout placing strain on the profession and broader business community.
• Cost pressures dominate: The cost of doing business remains the top concern for employers.  

“For the fourth straight year, our findings point to the same conclusion: Massachusetts residents, employers and high-income taxpayers are under increasing cost pressure,” said Zach Donah, CAE, President and CEO of MassCPAs. “Rising costs, tax policy concerns, workforce constraints and policy uncertainty are shaping business planning and, in some cases, relocation decisions. Publicly available data now reinforces what our members have been seeing firsthand: people are leaving Massachusetts, including high earners who play an important role in generating state revenue, supporting charitable giving and driving economic growth. Massachusetts remains a global leader, but those strengths must be actively protected. A competitive tax and workforce environment is essential to retaining residents, attracting investment and sustaining long-term economic growth.” 

The report outlines several policy recommendations to strengthen Massachusetts’ competitive position, including maintaining conformity with federal research and experimental (R&E) provisions, reform outdated tax structures such as the sting tax, raise the estate tax threshold and support Governor Healey’s workforce development initiatives. 

To download the full report and explore the data, visit masscpas.org/ppscreport2026.