Bill > H3262

This bill modifies Massachusetts income tax rates and personal exemptions, making several key changes to the state's tax code. Specifically, it establishes a flat 6.0% tax rate for Part B taxable income beginning in 2025 and updates personal exemption amounts for different income brackets. For tax years starting January 1, 2025, the bill sets personal exemptions at $6,600 for the lowest income bracket, $10,200 for the middle income bracket, and $13,200 for the highest income bracket. For tax years beginning in 2026, the bill introduces a dynamic adjustment mechanism where personal exemption amounts can increase by $275, $425, or $550 respectively, but only if specific economic conditions are met: the inflation-adjusted growth in baseline taxes must exceed 2.5% in the previous fiscal year, and the inflation-adjusted change in baseline taxes must be positive for each consecutive 3-month period between August and December. The bill also requires the tax commissioner to submit preliminary and final reports about these exemption amounts to various government entities by October 15 and December 15 each year, ensuring transparency in the tax rate and exemption calculation process.

Budget and Finance

https://malegislature.gov/Bills/194/H3262