Galvin Reminds Mass. Residents of New Federal Tax Break for 2026

Secretary of the Commonwealth William F. Galvin is reminding Massachusetts residents preparing to file their 2025 tax returns to pay close attention to recent changes in federal tax laws before submitting a return.

Under the tax reform package signed into law in July of this year, Galvin notes, certain taxpayers will now be able to deduct up to $40,000 in state and local tax payments – but only if they itemize their deductions.

In previous years, the state and local tax deduction was capped at $10,000. The recent increase in the deduction is most likely to benefit Massachusetts homeowners with significant property tax bills or residents with high income tax payments.

“Many taxpayers may not realize that their property tax, auto excise tax, and state income tax can all be deducted, subject to the $40,000 cap and certain income limits,” Galvin said. “Now is the time, at the beginning of the New Year, to consider your options and perhaps consult with a tax professional, to decide whether you should itemize your deductions to take advantage of this tax break.”

As the official overseeing most registries of deeds in Massachusetts, Galvin often provides information for property owners relating to refinancing, tax abatements, and homestead protections. More information may be found on his website, at www.sec.state.ma.us/rod.