AARP scores big wins in newly signed Massachusetts tax package

With a stroke of her pen, Massachusetts Governor Maura Healey signed into law a tax reform package that will benefit many of the state’s seniors. While there are many components to the legislation, there are number of key provisions that AARP Massachusetts advocated for.

“Today’s tax cuts will make the state more affordable,” the governor said at the signing ceremony on Beacon Hill. “The bottom line: if you live in Massachusetts, these tax cuts are for you. They are going to help you save money.”

These are the first tax cuts in Massachusetts in 20 years. Among the changes that will help the state’s seniors:

•Increasing the tax credit for a dependent child, disabled adult, or senior from $180 to $310 in taxable year 2023, and then to $440 in taxable year 2024 and beyond, per dependent, while eliminating the child/dependent cap.

•Doubling the Senior Circuit Breaker Tax Credit from $1,200 to $2,400 to lower the overall tax burden for more than 100,000 taxpayers age 65+, with low income, who own or rent residential property in Massachusetts as their primary residence.

•Increasing the rental deduction cap from $3,000 to $4,000, impacting approximately 881,000 Massachusetts renters.

•Increasing the Earned Income Tax Credit from 30 to 40 percent of the federal credit, helping 396,000 taxpayers with incomes under $57,000.

•Increasing the Senior Property Tax Volunteer Program maximums from $1,500 to $2,000 so municipalities may allow for certain seniors to reduce from their property tax by participating in the senior work-off program.

The Governor and Lt Governor touted the reforms at an event at the Northborough Senior Center October 10th. AARP Massachusetts State President Sandra Harris was among the invited guests.

"These tax cuts are designed to make sure there's a little extra money to help pay for the things you need as we've seen rising costs," said Lt. Governor Kim Driscoll at the event in Northborough.

“These measures help lower and middle-income residents and their families to have increased health and financial security and facilitate their ability to age with dignity in their own home and community, says Mike Festa, AARP Massachusetts State Director.

AARP sent a letter to the governor backing the proposal and urged the governor to sign it.

“This will go a long way towards supporting the Commonwealth’s older residents, their families and the Bay State’s 780,000 family caregivers.” Sandra Harris, AARP Massachusetts State President, stated in the letter. You can read the letter here.

The $1 billion tax reform package was years in the making. AARP has been advocating for a number of the measures over the last several years. The Massachusetts House and Senate each passed separate bills earlier this year. A conference committee hammered out the compromise over the summer. Both branches of the legislature passed the bill in late September. Governor Healey signed the reform package into law October 4^th.

AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. If you’d like to help us advocate, send us an email at ma@aarp.org