Rejoice, Massachusetts taxpayers. You’ll have a bit more money in your paychecks come January, and, if state assumptions are correct, another long-awaited reprieve — with potentially bigger budget ramifications — could follow.
The state income tax rate will drop from 5.1 percent to 5.05 percent at the start of the new year, the latest step in a yearslong, legislatively created process that will march the tax rate toward 5 percent and eventually fulfill the will of the voters from two decades ago.
The impact next year is likely small for the average taxpayer. For example, someone who is single, has no children, makes $50,000 a year, and rents his or her home stands to save $20, according to the Department of Revenue.