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March 2, 2022 Last Edit: June 5, 2025
Governor Charlie Baker filed legislation saving Massachusetts taxpayers roughly $700 million.
Governor Baker Proposes $700M in Tax Cuts
- Matching who is subject to the state income tax to the federal threshold.
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- $8,000 to $12,400 for single filers
- 16,400 to $24,800 for joint filers
- $14,400 to $18,650 for heads of household
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- Doubling the senior circuit breaker property tax credit from $1,170 to $2,340.
- Raising the tax deduction cap for renters from $3,000 to $5,000
- Doubling the dependent care tax credit.
- $480 for single filers with one eligible dependent
- $960 for single filers with two or more dependents.
- $360 for household filers with one qualifying dependent
- $720 for households with two or more dependents
- Doubling the estate tax exemption from $1 million to $2 million and eliminating the cliff effect (by making the tax only applicable to amounts over $2 million).
- Reducing the state’s short-term capital gains tax from 12% to 5%.
State:
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