Massachusetts’ budget increased cumulatively less than pop+inf in state funds but more than pop+inf in all funds from 2014-23, meaning taxes are lower in state funds and higher in all funds than the average taxpayer can afford.
- The 2023 state funds budget is $2.5 billion lower than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
- Because the state funds budget grew slower than population growth plus inflation for the last ten years, the state spent and taxed $57.5 billion less than possible.
- The 2023 all funds budget is $11.0 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
- Because the all funds budget grew faster than population growth plus inflation over the past decade, the state spent and taxed $11.9 billion too much.
State Funds Budget Data
- Estimated FY 2024 Only State Funds Budget ($ Billions): $58.47
- FY 2025 Only State Funds Budget Limit ($ Billions): $61.61
- FY 2025 Only State Funds Budget Limit Growth ($ Billions): 5.38%
- Cost per person of state funds budgeting more than pop+inf over the last decade in 2023 budget: ($351)
- Cost per family of 4 of budgeting more than pop+inf over the last decade in 2023 budget: ($1,404)
- Cumulative cost per person of state funds budgeting more than pop+inf over the last decade from 2014-23: ($8,208)
- Cumulative cost per family of 4 of state funds budgeting more than pop+inf over the last decade from 2014-23: ($32,832)
State All Funds Budget Data
- Estimated FY 2024 All Funds Budget ($ Billions): $82.34
- FY 2025 All Funds Budget Limit ($ Billions): $86.76
- FY 2025 All Funds Budget Limit Growth ($ Billions): 5.38%
- Cost per person of all funds budgeting more than pop+inf over the last decade in 2023 budget: 1,573
- Cost per family of 4 of all funds budgeting more than pop+inf over the last decade in 2023 budget: 6,291
- Cumulative cost per person of all funds budgeting more than pop+inf over the last decade from 2014-23: 1,694
- Cumulative cost per family of 4 of all funds budgeting more than pop+inf over the last decade from 2014-23: 6,775
Other Considerations
- Economic Freedom of North America (2021) (Rank): 28 [Fraser Institute]
- Economic Freedom (2022) (Rank): 32 [Cato Institute]
- Fiscal Policy (2022) (Rank): 18 [Cato Institute]
- Regulatory Policy (2022) (Rank): 39 [Cato Institute]
- State Tax Collections Per Capita (FY2021) ($): $5,202 [Tax Foundation]
- State Tax Collections Per Capita (FY2021) (Rank): 7 [Tax Foundation]
- State-Local Total Tax Burden per Capita (2022) ($): $9,405 [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (%): 11.50% [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (Rank): 37 [Tax Foundation]
- Top Income Tax Rate (2024) (%): 9.00% [Tax Foundation]
- Top Income Tax Rate (2024) (Rank): 44 [Tax Foundation]
- Flat/Progressive/Zero Income Tax (2024): P [Tax Foundation]
- Overall State Business Tax Climate Index (2024)(Rank): 46 [Tax Foundation]
- Top Corporate Income Tax Rate (2024) (%): 8.00% [Tax Foundation]
- Top Corporate Income Tax Rate (2024) (Rank): 40 [Tax Foundation]
- State-Local Sales Tax Rate (2024) (%): 6.25% [Tax Foundation]
- State-Local Sales Tax Rate (2024) (Rank): 15 [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2021) (%): 1.14% [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2021) (Rank): 18 [Tax Foundation]
- Economic Outlook (2024) (Rank): 36 [American Legislative Exchange Council]
- Economic Performance Rankings, 2012-2022 (2024) (Rank): 25 [American Legislative Exchange Council]
- Tax and Expenditure Limit (0-3): 1 [American Legislative Exchange Council]
- Tax and Expenditure Limit (Rank): 15 [American Legislative Exchange Council]
- Right-to-Work Law (2022) (Y/N): N [American Legislative Exchange Council]
- State-Local Spending per Capita (2022) ($): $17,065 [US Government Spending]
- State-Local Spending per Capita (2022) (Rank): 45 [US Government Spending]
- Official Poverty Rate (2020-22) (%): 8.5 [Census Bureau]
- Official Poverty Rate (2020-22) (Rank): 10 [Census Bureau]
- Supplemental Poverty Rate (2020-22) (%): 8.3 [Census Bureau]
- Supplemental Poverty Rate (2020-22) (Rank): 23 [Census Bureau]
- Labor Force Participation Rate (Dec 2023) (%): 64.90% [Bureau of Labor Statistics]
- Labor Force Participation Rate (Dec 2023) (Rank): 13 [Bureau of Labor Statistics]