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Massachusetts Income Tax Rate Dropping To 5% In 2020

Cash and tax forms.
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The income tax rate in Massachusetts will drop to 5% on January 1. It's a change that's been 20 years in the making.

In the year 2000, the Massachusetts personal income tax rate was close to 6%. Voters passed a ballot initiative to reduce it to 5% over three years.

But the legislature said: not so fast. The law it passed provided the rate could drop by .05% each year if revenue targets were met.

After years of incremental declines, the rate will drop on New Year's Day to 5%.

Paul Craney is with the Massachusetts Fiscal Alliance, which advocates for lower taxes and less government spending.

"It's great," he said. "One of these few days in Massachusetts you can celebrate that you get to keep a little more of your own hard-earned money."

The state estimates the change will lower income tax revenues by $185 million next fiscal year.

Before joining New England Public Media, Alden was a producer for the CBS NEWS program 60 Minutes. In that role, he covered topics ranging from art, music and medicine to business, education and politics.
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