Mass. Taxpayers In Line For Slight Income Tax Cut
BOSTON (AP) — Massachusetts taxpayers are in line for a slight cut in their state income taxes.
Barring a last-minute hitch, the tax rate will automatically be reduced from 5.3 percent to 5.25 on Jan. 1 due to sustained growth in revenue collections over the last year and a half.
The savings for the average taxpayer would be small. For example, a family with $50,000 in annual taxable income would save about $25.
Massachusetts Revenue Commissioner Amy Pitter told a Statehouse hearing Monday that a final determination on the tax cut will be made Thursday after a final review of tax collections for the past three months.
Pitter said she expected the cut to cost the state about $54 million in the current fiscal year and $114 million in the next fiscal year starting July 1.
Copyright 2011 The Associated Press.