Massachusetts retirement taxes at a glance
| Income | Taxed? | How |
|---|---|---|
| Social Security | No | Not taxed and not even reported on Form 1. |
| IRA withdrawals | Yes | Taxable above contributions Massachusetts already taxed: it never allowed a deduction for IRA contributions, so long-time residents have basis. |
| 401(k), 403(b) and 457(b) | Yes | Pre-tax 401(k) and 403(b) money is taxable when it comes out. |
| Private pensions | Yes | Taxable, less any contributions already taxed by Massachusetts. |
| Government pensions | Partly | Massachusetts state and local contributory pensions and federal contributory pensions are exempt. Another state’s public pension is exempt only if that state exempts Massachusetts pensions or has no income tax. |
| Military retirement pay | No | Noncontributory military retirement pay is fully exempt. |
| Roth conversions and Roth withdrawals | Partly | Conversions are taxable above Massachusetts basis; qualified Roth withdrawals are not. |
What retirees pay in Massachusetts
Five households, priced on the same 2026 tax engine Killion’s planner uses: Social Security plus withdrawals from a traditional IRA, the standard deduction, and every age break the state and federal returns give. Estimates for planning, not tax advice.
| Household | Social Security | IRA withdrawals | Massachusetts tax | Federal tax |
|---|---|---|---|---|
| Single, 67 | $24,000 | $20,000 | $745 (1.7%) | $0 |
| Single, 67 | $30,000 | $50,000 | $2,245 (2.8%) | $6,016 |
| Married, both 67 | $42,000 | $40,000 | $1,490 (1.8%) | $1,295 |
| Married, both 67 | $50,000 | $100,000 | $4,490 (3.0%) | $10,904 |
| Single, 62, before Social Security | $0 | $60,000 | $2,780 (4.6%) | $5,020 |
Massachusetts compared with other states
The same two households in each state we cover. In the nine states with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming) both pay $0 of state tax.
| State | Married, 67: $42,000 Social Security, $40,000 IRA | Single, 67: $30,000 Social Security, $50,000 IRA |
|---|---|---|
| Arizona | $0 | $646 |
| California | $0 | $815 |
| Colorado | $0 | $1,139 |
| Maryland | $0 | $964 |
| Massachusetts | $1,490 | $2,245 |
| Michigan | $0 | $0 |
| North Carolina | $579 | $1,486 |
| Ohio | $347 | $682 |
| Pennsylvania | $0 | $0 |
| Virginia | $0 | $1,325 |
2026 rates and senior breaks
Massachusetts’s rate: 5%, and 9% on taxable income over $1,107,750 in 2026.
| Rate | Single, over | Married filing jointly, over |
|---|---|---|
| 5% | $0 | $0 |
| 9% | $1,107,750 | $1,107,750 |
- $700 exemption per person 65 or older, on top of $4,400 single or $8,800 joint.
- Senior circuit breaker credit (up to $2,820 for 2025) for homeowners and renters whose property tax or rent is high relative to income.
- No tax at all if Massachusetts AGI is $8,000 or less single, $16,400 joint.
Local taxes: No local income tax.
What people get wrong about Massachusetts
- The 4% surtax counts every dollar of taxable income, so a large IRA withdrawal or Roth conversion can push a year over $1,107,750.
- Movers have no Massachusetts basis in an IRA funded elsewhere.
Tax on a 401(k) withdrawal in Massachusetts
A single filer aged 60 with no other income, taking one withdrawal in 2026:
| Withdrawal | Federal | Massachusetts |
|---|---|---|
| Tax on a $25,000 401(k) withdrawal | $890 | $1,030 |
| Tax on a $50,000 401(k) withdrawal | $3,820 | $2,280 |
| Tax on a $100,000 401(k) withdrawal | $13,170 | $4,780 |
| Tax on a $200,000 401(k) withdrawal | $36,734 | $9,780 |
Social Security across all fifty states, including the eight that can tax it, is on which states tax Social Security. Required minimum distributions add to this income from 73: see the RMD on $1 million.
The retirement tax calculator, set to Massachusetts
Set to a married couple, both 67, with $42,000 of Social Security and $40,000 of IRA withdrawals. Change any input, including the state.
On $82,000 of income, the 2026 tax is about $2,785: $1,295 federal and $1,490 Massachusetts. $20,450 of your Social Security is taxable. The next $1,000 you withdraw from an IRA would cost $235 in tax.
This year’s income sets your Medicare premiums for 2028. See your IRMAA tier.
Figures checked on against Mass.gov, 2025 Form 1 instructions, Mass.gov, tax treatment of non-government pensions, Mass.gov, tax treatment of government pensions and Mass.gov, Massachusetts tax rates.