Does Massachusetts tax pensions and retirement income?
Taxed, with a retirement exclusion
Partly. Massachusetts taxes most private pensions and annuities, but many government pensions are exempt. Traditional IRA withdrawals are taxable.
In the state's own words
Copied word for word from the official document linked below each quote:
“Income from most private pensions or annuity plans is taxable in Massachusetts but many government pensions are exempt.”
“Withdrawals from a traditional IRA are taxable but the Massachusetts taxable amount may be different from the federal taxable amount.”
And Social Security?
No. Social Security is not part of Massachusetts gross income. The Massachusetts Social Security page quotes the rule.
Federal tax still applies
Whatever Massachusetts does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) matter. Check with the Massachusetts Department of Revenue 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.
- Massachusetts tax information for seniors and retireesMassachusetts Department of Revenue. Read on November 12, 2026.