BOSTON (AP) — The new year is ringing in a bit of tax relief for workers in Massachusetts.
The state’s income tax rate drops slightly on Friday from 5.15 percent to 5.1 percent. The reduction is due to a law that automatically triggers a .05 percent reduction in the tax when state revenue growth hits certain benchmarks.
The rate could continue to fall in future years, but only until it reaches a floor of 5 percent.
The new year also brings an increase in the state’s earned income tax credit that could help an estimated 440,000 working families. The state credit rises from 15 percent to 23 percent of the federal earned income tax credit.
The state’s minimum wage is also going up on Friday, from $9 per hour to $10 per hour.