US Tax Tools

Massachusetts Retirement Income Tax 2025

See how Massachusetts treats Social Security, private pensions, annuities, and IRA distributions for a full-year resident, then run the official-source estimate with your own income.

Social Security

Massachusetts gross income does not include Social Security benefits.

Pension and IRA income

Most private pensions and taxable traditional IRA distributions are included, subject to Massachusetts basis rules.

012025 STATE RETURN INPUTS
Retirement income by state
For Massachusetts, the model subtracts $15,000 of retirement income and estimates $3,250 of 2025 state income tax.

Estimated 2025 state tax

$3,250

Resident return; local taxes and unmodeled credits excluded.

Modeled state taxable income

$65,000

Retirement-income subtraction

$15,000

Massachusetts gross income does not include Social Security benefits.

Most private pensions and taxable traditional IRA distributions are included, subject to Massachusetts basis rules.

Scope: Government and military pension exclusions, reciprocal treatment for certain out-of-state public pensions, and Massachusetts previously taxed IRA contributions are not modeled.

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Massachusetts worked example

For a single filer age 68 with $80,000 of federal AGI, including $15,000 of federally taxable Social Security, $30,000 of pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income:

Retirement subtraction

$15,000

Modeled state taxable income

$65,000

Estimated 2025 state tax

$3,250

This is an illustration, not a tax return. Local taxes, credits, and unmodeled state adjustments are excluded.

What this model does not include

Government and military pension exclusions, reciprocal treatment for certain out-of-state public pensions, and Massachusetts previously taxed IRA contributions are not modeled. Review the official instructions before filing.

Review the full Massachusetts income tax guide →

Massachusetts retirement income tax FAQs

Does Massachusetts tax Social Security benefits in 2025?

Massachusetts gross income does not include Social Security benefits.

Does Massachusetts tax pensions and IRA withdrawals?

Most private pensions and taxable traditional IRA distributions are included, subject to Massachusetts basis rules.

What does the Massachusetts retirement tax example include?

The example uses a single filer age 68 with $80,000 of federal AGI, $15,000 of federally taxable Social Security, $30,000 of private pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income.

Is this a complete Massachusetts resident return?

No. The estimate focuses on retirement-income treatment and the state rate schedule. It excludes local income tax and does not reproduce every deduction, credit, addition, subtraction, or special pension rule. Government and military pension exclusions, reciprocal treatment for certain out-of-state public pensions, and Massachusetts previously taxed IRA contributions are not modeled.

Sources

Related Calculators

Last updated August 1, 2026 Tax year 2025

Data sources: Massachusetts Department of Revenue — Tax Information for Seniors and Retirees

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

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