Origin: Massachusetts conforms to the federal tax exclusion for employer-provided parking, transit passes, and vanpool benefits provided under the Internal Revenue Code (the "Code"). In 2023, the Massachusetts and federal exclusions are subject to monthly maximums of $300 for parking and $300 for combined transit pass and vanpool benefits. The Massachusetts exclusion amount was different than the federal exclusion amount in prior years because prior to 2022 the state relied on the federal exclusion amounts determined under the 2005 Code.
Origin: M.G.L. c. 62, §§ 1(c), 1(d), and § 2(a); Code § 132(f)
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2022
FY2023
FY2024
FY2025
FY2026
Personal Income Tax
Exclusions from Gross Income
1.030
Exclusion from Gross Income of Parking, T-Pass and Vanpool Fringe Benefits
Massachusetts conforms to the federal tax exclusion for employer-provided parking, transit passes, and vanpool benefits provided under the Internal Revenue Code (the "Code"). In 2023, the Massachusetts and federal exclusions are subject to monthly maximums of $300 for parking and $300 for combined transit pass and vanpool benefits. The Massachusetts exclusion amount was different than the federal exclusion amount in prior years because prior to 2022 the state relied on the federal exclusion amounts determined under the 2005 Code.
M.G.L. c. 62, §§ <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section1" target="_blank">1(c), 1(d)</a>, and § <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2" target="_blank">2(a)</a>; <a href="https://www.law.cornell.edu/uscode/text/26/132" target="_blank">Code § 132(f)</a>
41.9
59.6
56.2
57.7
59.6
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