Bill > H3127

This bill modifies the existing tax deduction for rental payments in Massachusetts by allowing individuals who rent their primary residence within the state to deduct 50% of their rent from their state taxes, with a maximum deduction of $4,100 for single individuals, heads of household, or married couples. The deduction amount will be adjusted annually based on the cost-of-living index, using the consumer price index comparison to the 2021 baseline. Importantly, to be eligible for this tax relief, the household income must not exceed 100% of the area median income, as defined by the U.S. Department of Housing and Urban Development (HUD). This means the deduction is targeted at helping lower and middle-income renters manage their housing costs by providing a meaningful tax break. The changes will apply to tax years beginning on or after January 1, 2022, and the state's tax commissioner is directed to develop regulations to implement this new tax provision.

Budget and Finance

https://malegislature.gov/Bills/194/H3127