Massachusetts 'Millionaires Tax' (Fair Share)

Summary

Voters amended the state constitution to impose an additional 4% tax on the portion of a person's annual personal income that exceeds $1 million.

Rights & Rules

01.
If your total annual taxable income is under $1 million, your state income tax rate remains a flat 5%.
02.
If you make over $1 million in a single year, you pay 5% on the first million, and 9% (the base 5% + the new 4% surtax) on every dollar OVER $1 million.
03.
This tax applies to all forms of income, including capital gains from selling a business or a very expensive home.
04.
The $1 million threshold is adjusted every year for inflation so it only hits the truly wealthy.
05.
The state constitution legally requires the revenue from this extra 4% to be spent ONLY on public education and transportation infrastructure.

Penalties

01.
Wealthy individuals who attempt to evade the tax by hiding income or falsely claiming residency in a tax-free state (like NH or FL) face severe audits, massive financial penalties, and potential tax fraud charges.

Verified Citations

Massachusetts Constitution, Article of Amendment XLIV

Source

"To provide the resources for quality public education and affordable public colleges and universities, and for the repair and maintenance of roads, bridges and public transportation, all revenues received... from the tax of 4 percent... shall... be expended, subject to appropriation, only for these purposes."