Massachusetts Lawmakers Adopt $1 Billion Tax Relief Legislation

Massachusetts lawmakers approved significant tax changes, transitioning the corporate income tax to a single sales factor apportionment formula, lowering short-term capital gains taxes, and addressing a loophole on a surtax for high-income taxpayers.

The tax package (H.4104), which is expected to cost the commonwealth $1 billion by fiscal 2027 when fully implemented, passed the state Senate 38-1 Thursday, a day after it cleared the state House 155-1.

Gov. Maura Healey (D), who first proposed a broad tax cut in March, is expected to sign the legislation.

Among the legislation’s provisions is a requirement that married taxpayers ...