Jan 2, 2024 - News

Tax cuts signed into law by Gov. Healey take effect as 2024 begins

Tax breaks signed by Healey last year will soon take effect. Photo: Erin Clark/The Boston Globe via Getty Images.

The tax breaks Gov. Maura Healey signed into law last year are now in effect.

Why it matters: Massachusetts taxpayers can find more relief when doing their 2023 taxes.

What's happening: The $1 billion tax relief law includes larger deductions for parents and renters.

  • The child and dependent tax credit will increase from $180 to $310 per child for 2023 and then up to $440 for 2024 and beyond.

Here are other increased tax breaks, per the state:

  • Earned income tax credit: Worth up to 40% of federal EITC credit.
  • Senior circuit breaker credit: $2,400.
  • Rental deduction: $4,000.
  • Estate tax credit: $99,600 for everyone (effectively kills tax for estates below $2 million).
  • Septic tax credit: $18,000, with up to $4,000 claimable per year.
  • Lead paint abatement: $3,000 for full treatments eliminating lead hazards at home; $1,000 for partial treatment.

Plus: The short-term capital gains tax is dropping from 12% to 8.5%.

Be smart: The tax relief law also now requires married couples who file federal taxes jointly to do the same for state taxes.

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