Press Release  February Revenue Collections Total $2.131 Billion

(Boston, MA) — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for February totaled $2.131 billion, $125 million or 6.2% more than actual collections in February 2024, and $122 million or 6.1% above benchmark.^[1]

FY2025 year-to-date collections totaled approximately $25.491 billion^[2], which is $2.025 billion or 8.6% more than actual collections in the same period of FY2024, and $688 million or 2.8% above the year-to-date benchmark. A significant portion of the FY25 year-to-date above benchmark performance is likely driven by surtax and capital gains tax collections.

“February revenue included increases relative to February 2024 collections in withholding and ‘all other tax’,” said Commissioner Snyder. “These increases were partially offset by decreases in non-withheld income tax and corporate and business tax. The increase in withholding reflects increases in collections from most industries. The decrease in non-withholding income tax is primarily due to decreases in income estimated payments and increases in income tax refunds. The increase in ‘all other’ tax is mostly attributable to an increase in estate tax, a category that tends to fluctuate.”

On February 20, 2025, DOR certified that the preliminary estimate of surtax revenue collected in the period between July 2024 and January 2025 was $1.071 billion^[3]. On the same day, DOR also certified that the preliminary estimate of capital gains tax revenue collected for the period between July 2024 and January 2025 was $842 million^[4].

February has historically been the lowest month for revenue, contributing, on average, less than 6% of annual collections. Neither individual nor business taxpayers are required to make estimated payments during the month. February is also the month in which refunds reach substantial levels as the income tax filing season begins.

Details:

• Income tax collections for February totaled $1.129 billion, $131 million or 13.2% above benchmark, and $114 million or 11.2% more than February 2024.
• Withholding tax collections for February totaled $1.705 billion, $195 million or 12.9% above benchmark, and $186 million or 12.2% more than February 2024.
• Income tax estimated payments for February totaled $27 million, $56 million or 67.3% below benchmark, and $55 million or 67.1% less than February 2024.
• Income tax returns and bills for February totaled $90 million, $23 million or 35.2% above benchmark, and $8 million or 10.1% more than February 2024.
• Income tax cash refunds for February totaled $693 million in outflows, $32 million or 4.8% above benchmark, and $25 million or 3.7% more than February 2024.
• Sales and use tax collections for February totaled $681 million, $19 million or 2.7% below benchmark, but $4 million or 0.6% more than February 2024.
• Corporate and business tax collections for February totaled $63 million, $19 million or 23.4% below benchmark, and $15 million or 18.8% less than February 2024.
• “All other” tax collections for February totaled $259 million, $30 million or 12.9% above benchmark, and $21 million or 8.8% more than February 2024.

February 2025 Tax Collections Summary (in $ millions) Preliminary as of March 05, 2025 (PDF)

Footnotes

[1]

FY2025 monthly revenue benchmarks are posted on the DOR website.

[2]

Excludes $58 million in year-to-date revenue reclassified as settlement and judgment payments.

[3]

The preliminary estimate of revenue from the additional 4% income tax (i.e., the surtax) for the period between July 2024 and January 2025 is subject to revision as DOR analyzes more tax data.

[4]

The preliminary estimate of capital gains tax for the period between July 2024 and January 2025 is subject to revision as DOR analyzes more tax data.

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