Legislation passed during the 2023-2024 session included historic statewide tax cuts

(BOSTON–04/07/2025) Last session, 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.

“This tax season, Massachusetts families, seniors and workers will see real relief thanks to the historic statewide tax cuts.” said Senator Nick Collins. “With the Senior Circuit Breaker Tax Credit more than doubling, a 10% increase on the Earned Income Tax Credit and the most generous Child and Family Tax Credit in the nation, the tax cuts legislated into law last session were the largest relief package passed in a generation.”

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:

• The cap on the rental deduction increased from $3,000 to $4,000.
• For an estate valued under $2 million, the bill exempts you from the estate tax.
• Capital gains tax was reduced from 12% to 8.5%, providing relief for gains on assets held one year or less.

A reminder! Massachusetts State Taxes are due Tuesday, April 15^th. For a complete overview and access to resources for filing your tax returns, visit: https://www.mass.gov/info-details/massachusetts-current-tax-filing-season-overview

For free tax preparation services, please check for eligibility  at: https://bostonabcd.org/service/tax-assistance/