BOSTON — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder announced that preliminary revenue collections for January totaled $3.594 billion, $268 million or 6.9 percent less than actual collections in January 2023, and $263 million or 6.8 percent below benchmark.

 

FY2024 year-to-date collections totaled approximately $21.460 billion, which is $212 million or 1 percent less than collections in the same period of FY2023, and $263 million or 1.2 percent less than the year-to-date benchmark.

 

"January collections decreased in income tax withholding, non-withheld income tax, corporate and business tax, and 'all other' tax in comparison to January 2023," said Commissioner Snyder. "These decreases were partially offset by an increase in sales and use tax. The decrease in non-withheld income tax was driven by lower income tax estimated and return payments and an unfavorable increase in income tax refunds. The decrease in withholding was mainly due to typical timing factors in collections. The decrease in corporate and business tax was due to an increase in corporate refunds and a decrease in corporate estimated and return payments. The decrease in 'all other' tax is mostly attributable to a decrease in estate tax, a category that tends to fluctuate."

 

January is a significant month for revenues because many personal income taxpayers are required to make quarterly estimated payments. Historically, roughly 10.2 percent of annual revenue, on average, has been received during January.

 

Details:

 

Income tax collections for January totaled $2.411 billion, $230 million or 8.7 percent below benchmark, and $186 million or 7.2 percent less than January 2023.

 

Withholding tax collections for January totaled $1.526 billion, $49 million or 3.1 percent below benchmark, and $37 million or 2.4 percent less than January 2023.

 

Income tax estimated payments for January totaled $827 million, $165 million or 16.6 percent below benchmark, and $109 million or 11.6 percent less than January 2023.

 

Income tax returns and bills for January totaled $94 million, $14 million or 13.0 percent below benchmark, and $29 million or 23.3 percent less than January 2023.

 

Income tax cash refunds for January totaled $36 million in outflows, $1.2 million or 3.3 percent above benchmark, and $12 million or 47.4 percent more than January 2023.

 

Sales and use tax collections for January totaled $913 million, $8 million or 0.8 percent below benchmark, but $27 million or 3.1 percent more than January 2023.

 

Corporate and business tax collections for January totaled $98 million, $9 million or 8.1 percent below benchmark, and $67 million or 40.5 percent less than January 2023.

 

"All other" tax collections for January totaled $172 million, $18 million or 9.2 percent below benchmark, and $43 million or 19.9 percent less than January 2023.