Does Massachusetts tax military retirement pay?
Not taxed
No. Massachusetts excludes U.S. military pensions from gross income.
In the state's own words
Copied word for word from the official document linked below each quote:
“Income from U.S. military pensions is excluded from Massachusetts gross income.”
Other retirement income in Massachusetts
Partly. Massachusetts taxes most private pensions and annuities, but many government pensions are exempt. Traditional IRA withdrawals are taxable. The Massachusetts pension page has the details, and the Massachusetts Social Security page covers Social Security. No. Social Security is not part of Massachusetts gross income.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the Massachusetts Executive Office for Administration and Finance before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- FY2026 Tax Expenditure Budget: exclusions from gross incomeMassachusetts Executive Office for Administration and Finance. Read on November 13, 2026.