Massachusetts Taxpayers Will See Relief This Tax Season
Legislation passed during the 2023-2024 session included historic tax cuts
(BOSTON–04/01/2025) In 2023 the Massachusetts Legislature passed, and Governor Healey signed into law, a historic tax relief bill aimed at lowering costs for working families, homeowners, renters and the Commonwealth’s seniors, among others. Residents can expect to see the effects of this tax relief package as they file their taxes for tax year 2024.
“I am proud of the Senate’s work, along with our partners in the House, to pass historic tax relief for our residents,” said Senate President Karen E. Spilka (D-Ashland). “When our working families thrive, our Commonwealth thrives, and we live out our values when we take action to protect our vulnerable residents, such as children and seniors. I’m thankful to Governor Healey for signing this legislation that will put money back into the pockets of thousands this tax season.”
Major provisions include the most generous universal Child and Family Tax Credit in the country. Taxpayers will see the child and dependent tax credit increase from $310 to $440 per dependent child, disabled adult, and senior for taxable year 2024 and beyond. This legislation also eliminated the child and dependent cap and will benefit hundreds of thousands of families statewide.
The Earned Income Tax Credit (EITC) has been increased from 30 percent to 40 percent of the federal credit. This increase provides crucial support to working individuals and families, benefitting nearly 400,000 taxpayers with incomes under $67,000.
The legislation also includes relief for seniors by increasing the maximum Senior Circuit Breaker Tax Credit from $1,200. Because this credit is adjusted for inflation each year, the maximum credit for tax year 2024 is now $2,730. This increase helps approximately 100,000 seniors, especially those struggling with high housing costs who wish to stay in their homes.
2024 taxpayers can also expect relief in other areas including:
If you rent in the Commonwealth, the cap on the rental deduction increased from $3,000 to $4,000.
If you inherited an estate valued under $2 million, the bill exempts you from the estate tax.
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