Massachusetts tax collections up nearly 8 percent over August 2023

Colin A. Young

Collectors at the Department of Revenue brought in more than $2.6 billion in tax revenue last month, more than last August but still a bit less than the state was expecting.

DOR said preliminary August tax receipts of $2.622 billion represent an increase of $192 million or 7.9 percent over actual collections in August 2023, but landed $14 million or 0.5 percent below the monthly benchmark amount of $2.636 million.

Through two months of fiscal 2025, DOR has collected $5.309 billion, which is $212 million or 4.2 percent greater than actual collections in the same period of fiscal 2024, but $14 million or 0.3 below the year-to-date benchmark.

“August revenue included increases relative to August 2023 collections in withholding, non-withheld income tax, and corporate and business tax,” Revenue Commissioner Geoffrey Snyder said. “These increases were partially offset by decreases in sales and use tax and ‘all other’ tax. The increase in withholding is due, in part, to several significant corporate events. The decrease in sales and use tax is primarily the result of typical timing factors in collections. The decrease in ‘all other’ tax is due, in part, to estate tax, a category that tends to fluctuate.”

August is the first month for which DOR established a monthly benchmark based on the fiscal 2025 tax revenue estimate of $41.607 billion. DOR said the fiscal 2025 benchmarks “reflect $323 million in additional tax relief for the people of Massachusetts relative to FY24 – comprised of $268 million covering the second phase of last year’s historic tax package and $55 million in expanded tax credits enacted in the Affordable Homes Act.”

September revenues will be due from DOR by Thursday, Oct. 3. The administration has set the monthly benchmark at $4.547 billion, which would represent an increase of $359 million over collections in September 2023.