Press Release  April Revenue Collections Total $6.324 Billion

Boston, MA — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for April totaled $6.324 billion, $1.540 billion or 32.2% more than actual collections in April 2023, and $1.034 billion or 19.5% above benchmark.^[1]

FY2024 year-to-date collections totaled approximately $33.857 billion, which is $1.537 billion or 4.8% more than collections in the same period of FY2023, and $889 million or 2.7% more than the year-to-date benchmark.

“April collections increased in non-withheld income tax, income tax withholding, and sales tax in comparison to April 2023”, said Commissioner Snyder. “These increases were partially offset by decreases in corporate and business tax and ‘all other’ tax. The increase in non-withheld income tax was likely due, in large part, to the 4% income tax levied on annual taxable income in excess of $1,000,000 (4% income surtax)^[2]. The increases in income tax withholding and sales tax were due, in part, to typical timing factors in collections. The decrease in corporate and business tax was due to a decrease in return payments and an unfavorable increase in refunds, partially offset by an increase in estimated payments. The decrease in ‘all other’ tax is mostly attributable to a decrease in estate tax, a category that tends to fluctuate.”

Historically, April has been the single largest month for collections, ranking first of the 12 months in eight of the last 10 years. There are two main causes for April’s relative strength. First, the individual tax filing season reaches its peak; payments made with returns are concentrated in April, while refunds are spread across February, March, and April. Second, the first income estimated payment installment for the current tax year is due in April.

Details:

• Income tax collections for April totaled $4.644 billion, $1.066 billion or 29.8% above benchmark, and $1.516 million or 48.4% more than April 2023.
• Withholding tax collections for April totaled $1.500 billion, $81 million or 5.1% below benchmark, but $147 million or 10.8% more than April 2023.
• Income tax estimated payments for April totaled $429 million, $85 million or 24.9% above benchmark, and $132 million or 44.4% more than April 2023.
• Income tax returns and bills for April totaled $3.343 billion, $1.173 billion or 54.0% above benchmark, and $1.351 billion or 67.8% more than April 2023.
• Income tax cash refunds for April totaled $627 million in outflows, $112 million or 21.7% above benchmark, and $114 million or 22.1% more than April 2023.
• Sales and use tax collections for April totaled $834 million, $10 million or 1.2% below benchmark, but $81 million or 10.8% more than April 2023.
• Corporate and business tax collections for April totaled $647 million, $31 million or 4.6% below benchmark, and $37 million or 5.4% less than April 2023.
• “All other” tax collections for April totaled $200 million, $9 million or 4.6% above benchmark, but $20 million or 9.0% less than April 2023.

April 2024 Tax Collections Summary (in $ millions) Preliminary as of May 03, 2024

Footnotes

[1]

On January 12, 2024, the Secretary of Administration and Finance announced a revised tax revenue estimate of $39.834 billion for FY2024, which includes $1 billion for the 4% income surtax and a $576.8 million reduction in revenue resulting from the Tax Relief Bill. The revised FY2024 revenue benchmark represents July 2023 through December 2023 actual collections and forecasted collections for the months of January 2024 through June 2024.

[2]

The assessment of the 4% income surtax’s impact on non-withheld income tax is preliminary. It is based on partial income tax return and income payment data and is subject to revisions. Pursuant to Section 20 of Chapter 28 of the 2023 Acts, the Department of Revenue is required to certify to the State Comptroller, the amount of tax revenues estimated to have been collected due to the 4% income surtax for the period between July 1, 2023 and April 30, 2024 on or before May 20, 2024.

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