Massachusetts Sees Big Jump in August Tax Money

In August, Massachusetts tax collectors pulled in about $3.15 billion. That is almost 13 percent more than what they got in August last year. The jump came from every major tax type. Officials say the rise shows stronger economic activity across the state.

Income tax brought in the biggest share, roughly $1.9 billion. Sales tax added around $852 million. Corporate and business tax gave about $70 million. The remaining category, which includes estate and rooms tax, totaled $326 million. Together these pieces make up the total August haul.

The rise in withholding pay came mainly from firms in professional, scientific, technical services and health care. Non‑withholding income tax grew because more estimated and return payments arrived, helped by a rise in pass‑through entity tax and fewer refunds. Sales tax moved up and down as usual each month. Experts watch these shifts to guess where the economy is heading.

For the first two months of fiscal year 2027, collections reached $6.23 billion, up 13.9 percent from the same period a year ago. The state has not yet measured these numbers against its FY2027 goals, which will be set later this month. Refunds paid out in August were about $40 million. Understanding where money comes from helps lawmakers plan future spending.