In a significant move, the Healey-Driscoll Administration celebrated an unprecedented increase in the Senior Circuit Breaker Tax Credit. This monumental increase, the most substantial in Massachusetts’s history, promises to benefit over 100,000 seniors. Specifically, the credit has been doubled, enabling seniors to save an impressive $2,400 annually.
Governor Maura T. Healey, along with Lieutenant Governor Kim Driscoll, initiated their visit to the Northborough Senior Center. This visit marked the beginning of the “Cutting Taxes, Saving You Money” tour, specifically focused on the senior population. Notably, this tax cut, signed into law by Governor Healey, represents Massachusetts’ first in over two decades.
“When I ran for office, I committed to keeping our seniors in Massachusetts by making this state more affordable, and this tax credit a necessary step towards achieving this goal. These tax cuts will bring much needed relief to the seniors throughout the state and will support them as they continue to thrive here.”
Governor Healey
Wider Impacts of the Tax Cuts
In addition to the Senior Circuit Breaker Tax Credit, there are several other provisions tailored to provide financial relief to seniors:
- Senior Property Tax Volunteer Program: This program has seen an increase in the maximum allowable reduction from property taxes for seniors. Previously, municipalities might offer up to $1,500. Now, however, this figure has risen to $2,000. This change aims to alleviate the property tax burden for older residents.
- Child and Family Tax Credit: This tax credit has also been expanded. Previously, the credit was capped at two dependents and provided $180 per dependent child, disabled adult, or senior. Starting in 2023, this figure will rise to $310 and will further increase to $440 permanently from 2024. Consequently, approximately 565,000 families stand to benefit, making it the most generous universal child and dependent tax credit nationwide.
- Estate Tax: Another significant change is the increase in the estate tax threshold. Previously set at $1 million, the threshold has now been doubled to $2 million. This increase is designed to reduce the cliff effect and aligns Massachusetts more closely with other states’ policies. The change aims to facilitate the transfer of generational wealth and make the state a more appealing place for retirees.
Celebration of Governor Healey’s Historic Tax Savings
Last week’s tax cuts bill signing was not solely focused on seniors. Instead, it offered a broad range of benefits, including the expansion of the Child & Dependent Tax Credit, various rental deductions, and a reduction in the capital gain tax. Additionally, Governor Healey and Lieutenant Governor Driscoll have initiated visits to places like Gardner Elementary School and the Haverhill YMCA. During these visits, they celebrated the introduction of the nation’s most generous Child and Family Tax Credit. Additionally, the administration plans further engagements to highlight the relief provided to businesses and residents in the coming days.
“Thank you, Governor Healey and Lieutenant Governor Driscoll, for coming to Northborough to highlight this much needed relief for our seniors, like doubling the Senior Circuit Breaker Tax Credit. I am excited to continue building on this work with the board and continue helping our seniors alongside the Healey-Driscoll Administration.”
Chair of the Northborough Select Board Mitch Cohen.
Xylo News 