Post Content

Effective Jan. 1, the state's corporate tax rate has dropped from 8.75 percent to 8.25 percent, marking the second year in a row the rate has declined. An estimated 35,000 Massachusetts-based businesses will benefit from this reduction, making it easier for companies to expand and hire right here in the Commonwealth.

On Jan. 1, 2010, the corporate tax rate declined from 9.50 percent to 8.75 percent. The curent rate of 8.25 percent is scheduled to decline again on Jan. 1, 2012, to 8.0 percent.

"Our number one priority is job creation and continued economic growth," said Governor Deval Patrick. "The reduction in the corporate tax rate puts real money into the hands of Massachusetts corporations, providing resources that can be used for job creation and business development in communities across the Commonwealth."

DOR estimates the tax relief to corporations will amount to $411 million spread over fiscal years 2010, 2011 and 2012. In FY10, the reduced rate saved corporations $78.2 million, while in the current fiscal year DOR estimates a savings of $148.5 million. In FY12, DOR estimates corporate taxpayers will save $185.1 million from the rate reduction.

These rate reductions are the result of corporate tax reform signed into law by Gov. Patrick in July 2008. The law set in motion corporate rate reductions at the same time that the state adopted combined reporting and check-the-box tax reforms, both of which were designed to close loopholes that multi-state corporations have used to shelter income from the state's corporate income tax.

The result was that Massachusetts-based businesses are paying a lower corporate tax while several thousand multi-state or multi-national companies are also paying at a lower rate, but reporting more in taxable income because they can no longer shift taxable profits to low-tax or no-tax jurisdictions.

"Multi-state corporations are now paying their fair share of Massachusetts taxes, and for 35,000 Massachusetts-based businesses, corporate tax reform is delivering a lower rate," said Secretary for Administration and Finance Jay Gonzalez. "Even in the midst of unprecedented fiscal challenges, we are committed to following through with corporate tax reform and reducing costs for businesses so they can grow and create jobs in Massachusetts."

Written By:

Recent Posts

DOR Announces Updates to Offer in Compromise Program posted on Jan 10

The Massachusetts Department of Revenue (DOR) has updated its Offer in Compromise (Offer) program to streamline the process and incorporate best practices. Offer overview An Offer is an agreement between the taxpayer and DOR to settle a tax liability for less than the full amount   …Continue Reading DOR Announces Updates to Offer in Compromise Program

In Case You Missed It… posted on Dec 14

In Case You Missed It...

“If it isn’t on YouTube, it might as well have never happened.”- Gordon Korman Videos, Videos, Videos! In our What’s New at DOR update we highlighted our MassTaxConnect video tutorials as well as four videos to guide you through 2022’s filing season. Since the tutorials launched, we provided both English and Spanish subtitles for every video. Subscribe to DOR’s YouTube channel to   …Continue Reading In Case You Missed It…

Jobs! Jobs! Jobs! posted on Dec 13

Jobs! Jobs! Jobs!

Opportunities for employment abound here at the Massachusetts Department of Revenue. We are currently hiring for some of our key teams like the Fraud Unit, Tax, the Contact Center and the Collections Unit. What makes us stand out in the job market these days? Two   …Continue Reading Jobs! Jobs! Jobs!