Massachusetts’ Millionaires Tax Keeps Beating Expectations — And Other States Are Following
Massachusetts’ voter-approved the Fair Share Amendment in 2022, and since then, all it’s done is win for Massachusetts.
Last week, we learned how the “Millionaires Tax” continues to outperform expectations.
According to the latest state revenue reports, the 4% surtax on annual income above $1 million has already generated more than $3.1 billion during the current fiscal year—with two months still remaining. When voters approved the measure, projections estimated roughly $2 billion in annual revenue. Instead, collections have exceeded those estimates year after year, allowing for free school meals and community college tuition, school construction, transit, and transportation infrastructure throughout the state.
Fair Share proves that states can raise substantial revenue AND improve their economy so it can work for more people. Massachusetts ranks #1 on WalletHub’s Best State for Business and Best State to Live In, #1 on the Commonwealth Fund’s Health System Performance ranking, #3 in the Annie E. Casey Foundation’s KIDS COUNT Index of child well-being, and highly on several other national economic and quality-of-life indicators.
SRA has documented how this isn’t a coincidence, as the most progressive state tax codes usually score higher on national quality of life and opportunity rankings than those lauded by anti-tax advocates.
Massachusetts was the first major pro-revenue ballot victory this decade, and it sparked a series of legislative and voter successes. Congratulations to the Raise Up Massachusetts Coalition and Mass Budget, who are happy to share their story with others, as are several members of the SRA team who played major roles in the campaign – just reach out!
As budget pressures grow and wealth inequality remains a central issue, Massachusetts’ revenue success is likely to keep millionaire taxes on the agenda in statehouses across the country. Here are a few who have already taken action (mostly this year).
Washington: This year, Washington enacted a new 9.9% tax on household income above $1 million, scheduled to take effect in 2028. The state recently raised taxes on stock gains over $250,000, making this a major shift for a state long known for having no income tax. The new revenue will be used for programs that include childcare, school meals, and the state’s Child Tax Credit.
Maine: Governor Janet Mills signed a supplemental budget bill that includes a 2% surcharge on income over $1 million, which will lower property taxes for families with middle and lower incomes. The move will also make community college free for Mainers.
Rhode Island: After several years of growing advocacy and legislative leadership, Rhode Island will pass a surtax on incomes over $1 million. This is a huge victory, despite not going so far as to create a bracket for the top 1% of households. The budget and the revenue from the surtax will preserve important climate, education, and healthcare programs and make a refundable Child Tax Credit permanent.
Hawaii: Governor Josh Green signed a bipartisan budget that includes a new income tax bracket for joint filers over $1 million. The tax increase on wealthy families will ensure income tax cuts for lower-income households.
Maryland: In 2025, Maryland instituted two higher tax brackets for those earning over $500,000 and $1 million. The landmark policy allows the state to raise and maintain funding for education, health care, and other programs. As ITEP explains, the Governor and Maryland Legislature’s reforms will also advance racial and economic equity.