Good – but not great – news for Massachusetts taxpayers in the new year.
The state income tax will drop slightly in 2014 from 5.25 percent to 5.20 percent. The cut of five one-hundredths of one percent won’t add up to much for the typical tax payer.
The Department of Revenue predicts the most it could add up to is a savings of around $39 a year. That’s for a home-owning family of four with 2 young children making over $100,000.
A singe person with two young children, renting a place and making over $45,000 would save $9.
The tax rate is dropping automatically because of stronger than anticipated growth in state revenues.
It’s no windfall for taxpayers, but the Department of Revenue estimates it will cost the state $65 million in the first half of the year.