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| - Massachusetts voters approved a 4% surtax on incomes over $1 million in November 2022 that went into effect on Jan. 1, 2023. The Department of Revenue initially estimated the tax would raise around $1.5 billion from July 1, 2023, to June 30, 2024, also known as fiscal year 2024.
The tax surpassed the state's estimates, ultimately generating nearly $2.2 billion in fiscal year 2024 and nearly $3 billion in fiscal year 2025.
In late 2025, a rumor spread online that Massachusetts voters approved a 4% tax on incomes over $1 million — and now the state has "an extra $1.5 billion to spend."
The claim circulated on Facebook and Instagram.
It's true that the state's voters approved a 4% surtax on millionaires in
Given that the primary facts of the rumor are accurate but the revenue estimate relied on outdated information, we have rated this claim mostly true.
It is worth noting that the threshold for paying the surtax has increased annually with inflation. For example, when the surtax first took effect in 2023, people had to pay the additional 4% tax on any income they made over $1 million. In 2025, the threshold was $1,083,150.
Referendum passed in 2022
Massachusetts voters passed the 4% surtax — also known as the "Fair Share amendment" — through a ballot measure that won with 51% of the vote, according to the Massachusetts Secretary of State's website.
Here's the exact language the referendum added into the state constitution (emphasis ours):
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 in accordance with this paragraph shall be expended, subject to appropriation, only for these purposes. In addition to the taxes on income otherwise authorized under this Article, there shall be an additional tax of 4 percent on that portion of annual taxable income in excess of $1,000,000 (one million dollars) reported on any return related to those taxes. To ensure that this additional tax continues to apply only to the commonwealth's highest income taxpayers, this $1,000,000 (one million dollars) income level shall be adjusted annually to reflect any increases in the cost of living by the same method used for federal income tax brackets. This paragraph shall apply to all tax years beginning on or after January 1, 2023.
Revenue surpassed initial estimates
The $1.5 billion estimate circulating online appeared to originate from a Dec. 28, 2023, article from WBUR, one of Boston's NPR member stations. In the article, WBUR reported "the state Department of Revenue estimates it will generate over $1.5 billion in the fiscal year ending in June 2024."
Revenue ended up exceeding expectations: The Department of Revenue estimated it raked in nearly $2.2 billion from the 4% income surtax (see Page 1, Paragraph 2 of the state's net state tax revenue report for fiscal year 2024).
According to a July 2025
In total, that amounts to an estimated
How has Massachusetts used the money?
The post circulating online said the state "can now use that money on free public school meals, free community college, and public
In fiscal years 2024 and 2025, Massachusetts did, in fact, use the surtax revenue to support free public-school meals, free community college and transit investments such as public transportation routes meant to improve connections between different regions (see pages 2, 3 and 7 of the state's budget brief for fiscal year 2026).
The budget passed in fiscal year 2026 continued the state's use of surtax funds for the universal school meals and community colleges programs.
The state has also used the surtax to help fund child care affordability, free prekindergarten for certain cities, rural roads and various other education and transportation programs.
Massachusetts lawmakers set a spending limit of $1 billion for the surtax funds in fiscal year 2024 and $1.03 billion in fiscal year 2025. The fiscal year 2026 budget spent $2.4 billion from the "Fair Share" fund.
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