By Bob Katzen

Secretary of State Bill Galvin is reminding Massachusetts residents preparing to file their 2025 tax returns to pay close attention to tax breaks offered by recent changes in federal tax laws before submitting a return.

Galvin said that under the federal tax reform package signed into law in July 2025, some taxpayers will now be able to deduct up to $40,000 in state and local tax payments – but only if they itemize their deductions. Prior to passage of that package, state and local tax deductions were capped at $10,000. Galvin noted that this recent increase to $40,000 will most likely 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.”