The proposed bill aims to reduce the state personal income tax rate from 5% to 4% over a three-year period. Specifically, it amends Section 4 of chapter 62 of the General Laws by deleting subparagraphs (a)(1)(2) and (b) and inserting new tax rates for both Part A and Part B taxable income. For the tax year beginning January 1, 2027, the tax rate will be set at 4.67%, followed by 4.33% for the tax year beginning January 1, 2028, and finally 4.00% for tax years starting on or after January 1, 2029.

Additionally, the bill includes a severability clause, ensuring that if any part of the law is deemed invalid by a court, the remaining provisions will still remain in effect. This measure is designed to provide a gradual reduction in tax rates for personal taxable income, which includes interest, dividends, wages, and salaries, thereby benefiting taxpayers over the specified timeline.

Statutes affected:
Bill Text: 62-4