Summary of Bill S 1990: An Act Relative to the State Personal Income Tax for Low-Income Earners

Purpose and Intent

Bill S 1990 aims to amend the Massachusetts state personal income tax structure specifically for low-income earners. The primary goal is to increase the income thresholds for tax exemptions, thereby providing financial relief to individuals and families with lower incomes.

Key Provisions

The bill proposes the following amendments to Section 5 of Chapter 62 of the General Laws:

1. Increased Income Thresholds:
   • For single filers, the income threshold will be raised to $12,950.
   • For married couples filing jointly, the threshold will be set at $25,900, plus applicable deductions.
   • For heads of households, the threshold will be increased to $19,400, also with additional deductions allowed.

These changes are intended to ensure that low-income earners retain more of their income, thereby promoting economic stability and growth within this demographic.

Affected Parties

The bill primarily affects:
- Low-income individuals and families in Massachusetts who will benefit from the increased income thresholds.
- Taxpayers who file as single, married jointly, or heads of households, as they will see a reduction in their taxable income.
- State revenue as the adjustments may lead to decreased tax collections from low-income earners, necessitating potential adjustments in budget allocations.

Procedural Aspects

• Introduced: February 27, 2025
• Status: The bill is currently scheduled for a hearing on November 18, 2025, from 10:00 AM to 1:00 PM in room A-1.
• Committee Referral: The bill has been referred to the Committee on Revenue for further consideration.

Related Legislation

This bill is a continuation of efforts from previous sessions, as indicated by its similarity to Senate Bill No. 1817 from the 2023-2024 session.

Conclusion

Bill S 1990 represents a significant step towards adjusting the Massachusetts income tax framework to better support low-income earners. By increasing the income thresholds for tax exemptions, the bill seeks to alleviate financial burdens on vulnerable populations, fostering a more equitable tax system.