MA Taxpayer Refunds: See How Much You'll Get

MASSACHUSETTS — Almost $3 billion in excess state tax revenue will be refunded to Massachusetts residents this fall, and state officials are providing more details about when and how — and how much — will go back to taxpayers.

The refunds are coming thanks to a little-known 1980s law that says tax revenue growth can't exceed the sum of wages and salaries of all state residents in a given fiscal year. The state collected $41.8 billion in tax revenue in fiscal year 2022, which is $2.94 billion more than allowed under that law.

State Auditor Suzanne Bump certified the overage last week, kicking off the refund process. This is the first time since 1988 the law has triggered a taxpayer refund.

According to the Executive Office for Administration and Finance, refunds could begin going out in November and will either come as a check or direct deposit. To qualify, you must file a 2021 tax year return by Oct. 17.

In general, the state estimates taxpayers will get about 13 percent of the income tax amount paid in the 2021 tax year. So if you paid $5,000 in income tax, you could get $650 back. Get a more precise estimate on the state refund calculator here.

The full refund amount might be lower, however, if you owe unpaid child support or back taxes, for example.

"With many feeling the strain of rising prices, these refunds will be a welcome source of relief for more than three million hardworking individuals across the state, and we look forward to executing on the delivery of the refunds in the coming months,"Administration and Finance Secretary Michael Heffernan said.

On top of the $2.94 billion going back to taxpayers, Massachusetts ended the 2022 fiscal year with a surplus near $2.3 billion. Gov. Charlie Baker has proposed a spending plan for about $840 million, leaving another $1.5 billion left. Baker wants to spend about $200 million on improving the MBTA, $108 million on continued COVID-19 care — including vaccines, testing and personal protective equipment — and about $90 million on housing for the homeless, people leaving skilled nursing care centers and recent immigrants.