(BOSTON 4/8/2025) — In 2023, the Massachusetts Legislature passed and Governor Healey signed into law a bipartisan tax relief bill aimed at lowering costs for working families, homeowners, renters, and seniors. Bay Staters can expect to see the effects of this tax relief package as they file their taxes for tax year 2024.

“The Commonwealth’s affordability crisis has been affecting individuals and families across the state, making it harder for Bay Staters to afford critical necessities including groceries, heating, and childcare. Especially at a time when the President’s tariff policies are expected to further drive up the cost of everyday goods, the Legislature’s historic tax relief bill has become even more timely as residents file their 2024 taxes,” said Senator Michael Moore (D-Millbury). “I am hopeful that things such as an expanded child tax credit and rental tax deduction will help make the math a bit easier for families struggling to balance their budgets. As we look toward the new legislative session, I will be working with my colleagues to deliver more solutions to the affordability crisis we face in the Commonwealth.”

Major provisions include the most generous universal Child and Family Tax Credit in the country. Taxpayers will see the child and dependent tax credit increase from $310 to $440 per dependent child, disabled adult, and senior for taxable year 2024 and beyond. This legislation also eliminated the child and dependent cap and will benefit hundreds of thousands of families statewide.

The Earned Income Tax Credit (EITC) has been increased from 30 percent to 40 percent of the federal credit. This increase provides crucial support to working individuals and families, benefitting nearly 400,000 taxpayers with incomes under $67,000.

The legislation also includes relief for seniors by increasing the maximum Senior Circuit Breaker Tax Credit from $1,200. Because this credit is adjusted for inflation each year, the maximum credit for tax year 2024 is now $2,730. This increase helps approximately 100,000 seniors, especially those struggling with high housing costs who wish to stay in their homes.

2024 taxpayers can also expect relief in other areas including:

If you rent in the Commonwealth, the cap on the rental deduction increased from $3,000 to $4,000.
If you inherited an estate valued under $2 million, the bill exempts you from the estate tax.

Tax filings are due by Tuesday, April 15th. Alternatively, filers can request an extension until October 15th through the IRS and the Massachusetts Department of Revenue, though requests for an extension must be filed by April 15th.

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