FY 2024 state tax revenue up over FY 2023

BOSTON, Mass. (WWLP)– The Massachusetts Department of Revenue (DOR) has released preliminary results of the Fiscal Year 2024 revenue collections.

According to DOR, revenue collections for FY 2024 totaled approximately $40.800 billion, $1.636 billion or 4.2% more than collections in fiscal year 2023, and $967 million or 2.4% above the fiscal year 2024 benchmark.

“The increase in fiscal year 2024 revenue collections in comparison to fiscal year 2023 is mostly driven by an increase in the additional 4% tax levied pursuant to Article XLIV of the Amendments of the Constitution of the Commonwealth (the surtax)” said Commissioner Snyder. “The increase in the surtax was partially offset by decreases in sales and use tax, corporate and business excise, and ‘all other’ tax. The decrease in sales and use tax was primarily driven by a decrease in regular sales tax, reflecting, in part, lower collections from building supply dealers and firms in the construction industry. The decrease in Corporate and Business taxes was driven by a decrease in return payments and an increase in refunds, partially offset by an increase in estimated payments. The decrease in ‘all other’ tax is mostly attributable to a decrease in estate tax, a category that tends to fluctuate.”

Traditionally June sees an influx of tax payments because many individuals and corporations are required to make estimated payments. Approximately 1.1% of annual revenue, on average, is collected in June, making it the second or third largest revenue month of the year.

Details of the report are as follows:

Preliminary June Revenue Collections:

• Income tax collections for June totaled $2.564 billion, $303 million or 13.4% above benchmark, and $455 million or 21.6% more than June 2023.
• Withholding tax collections for June totaled $1.613 billion, $175 million or 12.1% above benchmark, and $243 million or 17.8% more than June 2023.
• Income tax estimated payments for June totaled $920 million, $146 million or 18.9% above benchmark, and $220 million or 31.5% more than June 2023.
• Income tax returns and bills for June totaled $115 million, $13 million or 10.4% below benchmark, and $1 million or 1.2% less than June 2023.
• Income tax cash refunds for June totaled $84 million in outflows, $4 million or 5.1% above benchmark, and $8 million or 9.9% more than June 2023.
• Sales and use tax collections for June totaled $785 million, $52 million or 6.2% below benchmark, and $68 million or 8.0% less than June 2023.
• Corporate and business tax collections for June totaled $878 million, $20 million or 2.2% below benchmark, and $20 million or 2.2% less than June 2023.
• “All other” tax collections for June totaled $267 million, $36 million or 15.8% above benchmark, but $10 million or 3.5% less than June 2023.

Preliminary Fiscal Year 2024 Revenue Collections:

• Income tax totaled $24.117 billion, $1.133 billion or 4.9% above benchmark, and $2.336 billion or 10.7% more than fiscal year 2023.
• Withholding collections totaled $17.967 billion, $390 million or 2.2% above benchmark, and $1.320 billion or 7.9% more than fiscal year 2023.
• Estimated payments totaled $3.919 billion, $85 million or 2.2% above benchmark, and $160 million or 4.3% more than fiscal year 2023.
• Income tax payments with returns and bills totaled $5.005 billion, $934 million or 22.9% above benchmark, and $1.074 billion or 27.3% more than fiscal year 2023.
• Income tax refunds (outflows) totaled $2.775 billion, $277 million or 11.1% above benchmark, and $218 million or 8.5% more than fiscal year 2023.
• Sales and use tax collections totaled $9.323 billion, $118 million or 1.2% below benchmark, and $73 million or 0.8% less than fiscal year 2023.
• Corporate and business tax collections totaled $4.833 billion, $63 million or 1.3% below benchmark, and $232 million or 4.6% less than fiscal year 2023.
• “All other” tax collections totaled $2.528 billion, $15 million or 0.6% above benchmark, but $395 million or 13.5% less than fiscal year 2023.

More information on the tax collections can be found on the Mass.gov website.

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