An Act relative to Reducing the State Personal Income Tax Rate from 5% To 4%

H 5007 would gradually reduce the state's personal income tax rate from 5% to 4% over three years. Starting in 2027, the tax rate would be 4.67% for part of the year, then 4.33% in 2028, and finally 4.00% for all tax years beginning on or after January 1, 2029. This bill directly affects all state residents who pay personal income tax, including those with income from interest, dividends, and other taxable sources. The key mechanism is a phased reduction in tax rates for all taxable income brackets over the specified timeline. The bill is currently pending before the Special Joint Committee on Initiative Petitions.