Press Release  Fiscal Year 2024 Revenue Collections Totaled $40.800 Billion

(Boston, MA) — Fiscal year 2024 revenue collections were 4.2% more than fiscal year 2023 collections and 2.4% above the annual benchmark. June 2024 revenue collections totaled $4.495 billion, $357 million more than June 2023 actual collections and $268 million above the June 2024 benchmark. 

(Boston, MA) – Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for June totaled $4.495 billion, $357 million or 8.6% more than actual collections in June 2023, and $268 million or 6.3% above benchmark.[1]

Revenue collections for fiscal year 2024 totaled approximately $40.800 billion, $1.636 billion or 4.2% more than collections in fiscal year 2023, and $967 million or 2.4% above the fiscal year 2024 benchmark. “The increase in fiscal year 2024 revenue collections in comparison to fiscal year 2023 is mostly driven by an increase in the additional 4% tax levied pursuant to Article XLIV of the Amendments of the Constitution of the Commonwealth (the surtax)” said Commissioner Snyder. “The increase in the surtax was partially offset by decreases in sales and use tax, corporate and business excise, and ‘all other’ tax. The decrease in sales and use tax was primarily driven by a decrease in regular sales tax, reflecting, in part, lower collections from building supply dealers and firms in the construction industry. The decrease in Corporate and Business taxes was driven by a decrease in return payments and an increase in refunds, partially offset by an increase in estimated payments. The decrease in ‘all other’ tax is mostly attributable to a decrease in estate tax, a category that tends to fluctuate.”

On July 24, 2024, DOR certified that the preliminary estimate of surtax revenue collected in fiscal year 2024 was $2.199 billion[2]. On the same day, DOR also certified that the preliminary estimate of capital gains tax revenue collected in fiscal year 2024 was $2.070 billion[3], which generated a total fiscal year 2024 transfer of approximately $590.8 million to the Stabilization Fund, the State Retiree Benefits Trust Fund, and the Pension Liability Fund. 

June is a significant month for revenues because many individuals and corporations are required to make estimated payments. Historically, roughly 11.1% of annual revenue, on average, has been received during June, making it the second or third largest revenue month of the year. 

Details: 

• Preliminary June Revenue Collections:
  Income tax collections for June totaled $2.564 billion, $303 million or 13.4% above benchmark, and $455 million or 21.6% more than June 2023.
• Withholding tax collections for June totaled $1.613 billion, $175 million or 12.1% above benchmark, and $243 million or 17.8% more than June 2023.
• Income tax estimated payments for June totaled $920 million, $146 million or 18.9% above benchmark, and $220 million or 31.5% more than June 2023.
• Income tax returns and bills for June totaled $115 million, $13 million or 10.4% below benchmark, and $1 million or 1.2% less than June 2023.
• Income tax cash refunds for June totaled $84 million in outflows, $4 million or 5.1% above benchmark, and $8 million or 9.9% more than June 2023.
• Sales and use tax collections for June totaled $785 million, $52 million or 6.2% below benchmark, and $68 million or 8.0% less than June 2023.
• Corporate and business tax collections for June totaled $878 million, $20 million or 2.2% below benchmark, and $20 million or 2.2% less than June 2023.
• “All other” tax collections for June totaled $267 million, $36 million or 15.8% above benchmark, but $10 million or 3.5% less than June 2023.

Preliminary Fiscal Year 2024 Revenue Collections:

• Income tax totaled $24.117 billion, $1.133 billion or 4.9% above benchmark, and $2.336 billion or 10.7% more than fiscal year 2023.
• Withholding collections totaled $17.967 billion, $390 million or 2.2% above benchmark, and $1.320 billion or 7.9% more than fiscal year 2023.
• Estimated payments totaled $3.919 billion, $85 million or 2.2% above benchmark, and $160 million or 4.3% more than fiscal year 2023.
• Income tax payments with returns and bills totaled $5.005 billion, $934 million or 22.9% above benchmark, and $1.074 billion or 27.3% more than fiscal year 2023.
• Income tax refunds (outflows) totaled $2.775 billion, $277 million or 11.1% above benchmark, and $218 million or 8.5% more than fiscal year 2023.
• Sales and use tax collections totaled $9.323 billion, $118 million or 1.2% below benchmark, and $73 million or 0.8% less than fiscal year 2023.
• Corporate and business tax collections totaled $4.833 billion, $63 million or 1.3% below benchmark, and $232 million or 4.6% less than fiscal year 2023.
• “All other” tax collections totaled $2.528 billion, $15 million or 0.6% above benchmark, but $395 million or 13.5% less than fiscal year 2023. 

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June 2024 and FY24 Tax Collections Summary (in $ millions) Preliminary as of August 9, 2024

Footnotes

[1]

On January 12, 2024, the Secretary of Administration and Finance announced a revised tax revenue estimate of $39.834 billion for fiscal year 2024, which includes $1 billion for the 4% income surtax and a $576.8 million reduction in revenue resulting from the Tax Relief Bill. The revised FY2024 revenue benchmark represents July 2023 through December 2023 actual collections and forecasted collections for the months of January 2024 through June 2024.

[2]

The preliminary estimate of fiscal year 2024 revenue from the additional 4% income tax (i.e., the surtax) is subject to revision as DOR analyzes more tax data. Any revisions will be reflected in the December 2024 final report of fiscal year 2024 tax revenue from the additional 4% income tax.

[3]

The preliminary estimate of fiscal year 2024 capital gains tax revenue is subject to revision as DOR analyzes more tax data. Any revisions will be reflected in the November 2024 final report of fiscal year 2024 tax revenue from capital gains income.

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