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The Massachusetts Budget and Policy Center, a left-leaning think tank, projected that the surtax would generate about $2 billion annually.

However, the surtax has brought in far more: $2.4 billion in 2024 (the first full year), $3 billion in 2025, and now over $3.1 billion this fiscal year.

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However, according to a report by the Institute for Policy Studies and the State Revenue Alliance, the number of people with a net worth of over $1 million increased by 38% between 2022 and 2024.

The extra funds come as lawmakers enter the final stages of passing a budget for the next fiscal year amid an uncertain economic forecast and federal funding cuts. The next budget year begins July 1.

Evan Horowitz, executive director of Tufts University’s Center for State Policy Analysis, told The Boston Globe that lawmakers should still be cautious.

The surplus, he told the Globe, is fueled by business sales and equity returns — both of which are tied to the health of the stock market.

“The stock market has been booming, and so the millionaires’ tax is bringing in revenue,” he told the Globe. “This money is volatile. If the state builds a budget that relies on this money for core programs, you are going to have a hole in core programs [in the future].”