Massachusetts Governor Announces Part B Individual Income Tax Rate Deduction to 5 Percent

The Massachusetts Governor Dec. 13 announced that the state’s Part B individual income tax rate will be reduced to 5 percent from 5.05 percent effective Jan. 1, 2020. The tax cut represents the conclusion of the statutory process laid out to lower the income tax rate to 5 percent based on certain revenue milestones. Part B income includes wages, salary, and many other forms of income, including self-employment income; business, professional and farm income; S corporation distributions; interest and dividends; most capital gains; and rental income from personal property. [Mass. Governor’s Office, Press Release, 12/13/19]

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