Thirty-four states will ring in the new year with notable tax changes, including 15 states cutting individual or corporate income taxes (and some cutting both).
The Tax Foundation released a new one-stop-shop highlighting all the changes set to take effect, including in Massachusetts. CLICK HERE to see the full breakdown. Key points for Massachusetts below.
Massachusetts Tax Changes Effective January 1, 2024
- On October 4, 2023, Governor Healey signed H. 4104 which requires taxpayers to use the same filing status on both state and federal income tax returns. This was done, in part, to restrict avoidance of the state’s surtax of 4 percent on incomes exceeding $1 million.
- In years past, married taxpayers could opt to file jointly on their federal tax return and individually on the state return, which allowed some individuals to avoid paying surtax.
- The state also passed a tax reform package that was largely retroactive to 2023 but included a stepped increase in the child and dependent tax credit, from $330 to $440, in 2024.
“The past several years have seen a wave of significant tax reforms, including rate reductions and tax cuts, as states emerged from the pandemic with revenue surpluses and stared down inflation,” said Manish Bhatt, Senior Policy Analyst at the Tax Foundation. “Whether and how this trend continues is yet to be seen, but evidence from the past three years indicates that many states understand and value the importance of creating and maintaining a stable, pro-growth, and competitive tax code.”
CLICK HERE to read the full post. If you wish to speak with our experts on state tax changes taking effect in the new year, please do not hesitate to reach out.
Jesse A. Solis