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State retirement taxes · 2026

Does Massachusetts tax retirement income?

Short answer: Partly. Massachusetts does not tax Social Security benefits. Massachusetts and federal contributory government pensions are fully exempt; private pensions and IRAs are taxed.

Friendly2026 rules Verified October 23, 2026

What’s taxed in Massachusetts

2026 rules.

Social SecurityNot taxed
Massachusetts does not tax Social Security benefits.
PensionsPartly taxed
Massachusetts and federal government pensions are exempt; most private pensions are taxed at 5%.
IRA & 401(k) withdrawalsTaxed
IRA and 401(k) withdrawals are taxable at 5%.
Military retirement payNot taxed
U.S. military pensions are excluded from Massachusetts income.
Income tax rate9% top
5% on most income — wages, pensions, IRA withdrawals, interest, dividends and long-term gains; 8.5% on short-term capital gains and 12% on collectibles.

Does Massachusetts tax Social Security?

Massachusetts does not tax Social Security benefits.

Massachusetts gross income doesn’t include Social Security benefits; Railroad Retirement Tier I and II are exempt too.

Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.

Are pensions taxed in Massachusetts?

Massachusetts and federal government pensions are exempt; most private pensions are taxed at 5%.

Contributory government pensions are excluded: Massachusetts state and local systems (including ORP, MBTA, police and fire) and federal civil service (including USPS). Another state’s contributory public pension is exempt only if that state returns the favor for Massachusetts pensions or has no income tax. Private pensions and annuities are taxable, and so are non-contributory pensions.

Public vs. private pensions: Contributory government pensions exempt; private pensions taxed at 5%.

Are IRA and 401(k) withdrawals taxed in Massachusetts?

IRA and 401(k) withdrawals are taxable at 5%.

The Massachusetts taxable amount can be lower than the federal amount because contributions you already paid Massachusetts tax on come back tax-free. Federal TSP and 457 distributions are fully taxable in the year paid.

Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.

Is military retirement pay taxed in Massachusetts?

U.S. military pensions are excluded from Massachusetts income.

What is Massachusetts’ income tax rate?

A flat 5% on most income; 9% at the top.

5% on most income — wages, pensions, IRA withdrawals, interest, dividends and long-term gains; 8.5% on short-term capital gains and 12% on collectibles. A 4% surtax applies to income over $1,107,750 in 2026 ($1,083,150 in 2025), for a top rate of 9%.

Standard deduction and exemptions

No standard deduction; personal exemptions instead — $4,400 single or married filing separately, $6,800 head of household, $8,800 joint. Add $700 for each filer 65 or older and $2,200 if blind.

What tax breaks do seniors get in Massachusetts?

The $700 exemption at 65+. The refundable Senior Circuit Breaker credit (65+, based on property tax or rent) was up to $2,820 for 2025; the 2026 maximum has not been announced.

What changed for 2026?

The surtax threshold is indexed each year ($1,107,750 for 2026; 2027 not yet announced). We found no 2025–2026 law changing how retirees’ income is taxed.

The 2026 rate and surtax threshold are official.

What we couldn’t confirm

  • The 2026 Senior Circuit Breaker maximum has not been announced; we show the 2025 amount.

How Massachusetts compares with its neighbors

Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.

State tax is half the picture — check the federal side

Is My Social Security Taxable?How much of your Social Security is taxable using the IRS worksheet — and what the new $6,000 senior deduction changes.Open RMD CalculatorYour required minimum distribution for 2026 or 2027, the exact deadline, and the IRS table math behind it.Open IRMAA CalculatorWill your income trigger Medicare's IRMAA surcharge? See your tier, the yearly cost, and how far you are from the next cliff.Open

Massachusetts retirement tax questions

Is Massachusetts tax-friendly for retirees?

We rate Massachusetts “Friendly” for 2026. Massachusetts does not tax Social Security benefits. Massachusetts and federal contributory government pensions are fully exempt; private pensions and IRAs are taxed. The top income tax rate is 9%.

Are required minimum distributions (RMDs) taxed in Massachusetts?

RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow Massachusetts’ rules for those accounts. IRA and 401(k) withdrawals are taxable at 5%.

Is military retirement pay taxed in Massachusetts?

No. U.S. military pensions are excluded from Massachusetts income.

What is Massachusetts’ income tax rate for 2026?

5% on most income — wages, pensions, IRA withdrawals, interest, dividends and long-term gains; 8.5% on short-term capital gains and 12% on collectibles. A 4% surtax applies to income over $1,107,750 in 2026 ($1,083,150 in 2025), for a top rate of 9%.

Sources for Massachusetts

Primary sources only. We re-check them whenever an agency publishes new figures.

  1. State
    Mass.gov — Massachusetts tax rates
  2. State
    Mass.gov — Tax information for seniors and retirees
  3. State
    Mass.gov — Tax treatment of government pensions
  4. State
    Mass.gov — 4% surtax on taxable income
  5. State
    Mass.gov — Senior Circuit Breaker tax credit
  6. State
    Mass.gov — Personal income tax exemptions

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