Press Release: 2025-01-07

December Revenue Collections Total $4.345 Billion

 



Monthly collections up $573 million or 15.2% vs. December 2023 actual; $267 million above benchmark



FOR IMMEDIATE RELEASE:



1/06/2025



MEDIA CONTACT



Nathalie Dailida



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Call Nathalie Dailida at (617) 626-2175



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Email Nathalie Dailida at dailidan@dor.state.ma.us



(BOSTON, MA) — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for December totaled $4.345 billion, $573 million or 15.2% more than actual collections in December 2023, and $267 million or 6.5% above benchmark.[1]



FY2025 year-to-date collections totaled approximately $19.260 billion[2], which is $1.394 billion or 7.8% more than actual collections in the same period of FY2024, and $159 million or 0.8% above the year-to-date benchmark. 



DOR estimates that roughly $197 million of the year-over-year increase in December reflects one-time events in withholding and estate taxes, without which December 2024 revenue would be about $376 million or 10.0% more than actual collections in December 2023 and $70 million above the December benchmark. Without these one-time payments, year-to-date collections would be $38 million or 0.2% below the year-to-date benchmark.



“December revenue included increases relative to December 2023 collections in non-withheld income tax, sales tax, corporate and business tax, and ‘all other tax’,” said Commissioner Snyder. “The increase in non-withholding income tax is due, in part, to a likely increase in surtax revenue and the pass-through entity excise, and the impact of a tax amnesty program administered by DOR from November 1 to December 30, 2024. The increase in sales tax is partly due to typical timing factors in collections and the amnesty program. The increase in ‘all other tax’ is due to an increase in estate tax, a category that tends to fluctuate. The increase in corporate and business tax is primarily the result of higher corporate return payments.”



December is a significant month for revenues because many corporate and business taxpayers are required to make quarterly estimated payments. In addition, some quarterly personal income tax estimated payments due by January 15th are received in December. Historically, roughly 9.5% of annual revenue, on average, has been received during December. 



Given the brief period covered in the report, December results should not be used as a predictor for the rest of the fiscal year.



Details:




  • Income tax collections for December totaled $2.493 billion, $119 million or 5.0% above benchmark, and $265 million or 11.9% more than December 2023.

  • Withholding tax collections for December totaled $1.751 billion, $119 million or 6.4% below benchmark, and $4 million or 0.3% less than December 2023.

  • Income tax estimated payments for December totaled $610 million, $169 million or 38.3% above benchmark, and $174 million or 39.9% more than December 2023.

  • Income tax returns and bills for December totaled $157 million, $31 million or 24.1% above benchmark, and $55 million or 54.0% more than December 2023.

  • Income tax cash refunds for December totaled $26 million in outflows, $39 million or 60.3% below benchmark, and $40 million or 61.0% less than December 2023.

  • Sales and use tax collections for December totaled $864 million, $2 million or 0.2% below benchmark, but $113 million or 15.0% more than December 2023.

  • Corporate and business tax collections for December totaled $668 million, $15 million or 2.4% above benchmark, and $51 million or 8.2% more than December 2023.

  • “All other” tax collections for December totaled $321 million, $135 million or 72.7% above benchmark, and $146 million or 83.2% more than December 2023.



December 2024 Tax Collections Summary (in $ millions) Preliminary as of January 06, 2025



Footnotes



[1]



FY2025 monthly revenue benchmarks are posted on the DOR website: https://www.mass.gov/lists/dor-year-to-date-and-monthly-tax-collection-benchmark-ranges.



[2]



Excludes $58 million in year-to-date revenue reclassified as settlement and judgment payments.