By John L. Micek
masslive.com
(TNS)
Massachusetts collected $43.7 billion in the budget year that ended on June 30, driven by healthy collections from the state’s “Millionaire’s Tax” and a new capital gains tax, according to recently released state data.
The state’s tax collections for the 2024-25 budget year were $2 billion, or 5.1%, ahead of its projections, and nearly $3 billion, or 7.1%, ahead of what it collected last year, according to the state Department of Revenue.
That’s good news for bean-counters on Beacon Hill, who have had to reckon with a chaotic funding picture from Washington under the second Trump administration.
But with the state budget nonetheless reliant on some $16 billion in federal funding, it also doesn’t mean that the commonwelath is entirely out of the woods.
All told, the state collected $2.9 billion from the Millionaire’s Tax, an additional 4% levy paid by anyone earning more than $1 million a year. It also took in $2.4 billion from the capital gains levy, state data show.
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By law, money from the Millionaire’s Tax, which was approved in a statewide referendum in 2022, can only be used for education- and transportation-related projects.
The bump from the Millionaire’s Tax, however, was slightly “offset by a decrease in corporate and business tax,” state Revenue Commissioner Geoffrey Snyder said in a statement.
For June alone, the state collected $4.5 billion in tax revenue. That’s $67 million, or 1.5% more than actual collections at the same time last year, and 1.4% ahead of projections.
Here’s a look at the major collections, by category, in June:
- Income tax collections for June totaled $2.605 billion. That’s $45 million or 1.8% above the state’s benchmark, and $41 million or 1.6% more than June 2024.
- Sales and use tax collections for June totaled $862 million. That’s $6 million or 0.8% above benchmark, and $77 million or 9.8% more than June 2024.
- Corporate and business tax collections for June totaled $851 million. That’s $6 million or 0.8% below benchmark, and $28 million or 3.1% less than June 2024.
- “All other” tax collections for June totaled $244 million. That’s $17 million or 7.6% above benchmark, but $23 million or 8.5% less than June 2024, state data show.
June is a big month for tax collections, according to the Revenue Department, that’s because many individual taxpayers and corporations make estimated payments.
Historically, June collections account for 11.2% of the state’s total take, making it the second or third largest revenue month of the year, officials said.
Photo caption: Historical landmarks and sites around downtown Boston, Massachusetts. (Chris LaBasco/iStock)
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©2025 Advance Local Media LLC. Visit masslive.com. Distributed by Tribune Content Agency LLC.
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