Major 2024 Changes for Individual Massachusetts Taxpayers
Due Date
The due date for Massachusetts Income Tax Returns is April 15, 2025.
Income Tax Rate
The tax rate on most types of taxable income is 5%. The tax rate on long-term gains from the sale or exchange of collectibles is 12%. For tax years beginning on or after January 1, 2023, the tax rate on short term gains from the sale or exchange of capital assets is 8.5%.
4% Surtax on Taxable Income Over $1 Million Starting with Tax Year 2023
Individual taxpayers must pay an additional 4% (4% surtax) on taxable income over $1,000,000, increased annually for inflation. For the 2024 tax year, the threshold is $1,053,750. See Technical Information Release (TIR) 23-12.
Changes to Massachusetts Joint Filing Requirements
For tax years beginning on or after January 1, 2024, married couples must file a joint personal income tax return for any year in which they file a joint federal income tax return, unless an exception applies. See TIR 24-4.
Repeal of the Deduction of Interest from Massachusetts Banks
The deduction previously allowed for a deduction of up to $100 ($200 for joint filers) of interest from Massachusetts banks is repealed for tax years beginning on or after January 1, 2024.
Annual Update of Circuit Breaker Tax Credit
Taxpayers aged 65 or older who own or rent residential property located in Massachusetts are allowed a credit equal to the amount by which their total real estate tax payments, or 25% of their rent in the case of a renter, exceeds 10% of the taxpayer’s total income.
The maximum credit for tax year 2024 is $2,730. The amount of the credit is subject to limitations based on the taxpayer’s total income and the assessed value of the real estate. See our earlier blog for information on income limitations and the maximum assessed value.
Child and Family Tax Credit
For taxable years beginning on or after January 1, 2024, the refundable, child and family tax credit for taxpayers who maintain a household that includes certain individuals increases from $310 to $440 for each such individual. There is no limit to the number of such individuals that may qualify for the credit. See TIR 24-4.
In addition, starting with tax years beginning on or after January 1, 2024, a noncustodial parent may claim the credit with respect to a child dependent that is aged 13 or older and who is physically or mentally incapable of caring for himself or herself. See TIR 24-13 for additional information.
Categorized: Taxes
Tagged In: child and family tax credit, income tax rate, senior circuit breaker tax credit, surtax
