- Income tax
- 5%–9%
- Social Security
- Exempt
- Retirement exclusion
- None modeled
- Standard deduction
- None
- Personal exemption
- $8,800 joint · $4,400 single
- Capital gains
- Taxed as ordinary income
How Massachusetts taxes retirement income
Massachusetts taxes income in 2 brackets for a married couple filing jointly, from 5% to 9%; the top rate starts at $1,107,750 of taxable income[1]. For the example couple below, the last dollar of taxable income falls in the 5% bracket.
The simulator applies no Massachusetts standard deduction; it subtracts personal exemptions of $8,800 on a joint return ($4,400 single).
Social Security benefits are exempt from Massachusetts income tax: none of the benefit enters the state base, as in 22 of the 24 states covered here that tax income.
The simulator applies no retirement-income exclusion in Massachusetts: IRA and 401(k) withdrawals and pensions are taxed like other income. Any narrower break in state law that the simulator does not apply is listed under “What this page leaves out”.
Long-term capital gains and qualified dividends are taxed as ordinary income, at the same rates.
For single filers the simulator halves the joint deduction and exemption but keeps the joint bracket widths. Where Massachusetts’s real single brackets are narrower, that understates a single filer’s tax.
Put together, the example couple below owes $2,560 in Massachusetts, the 21st lowest of the 24 states covered here that tax income.
2026 brackets
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | $1,107,750 | 5% |
| $1,107,750 | and over | 9% |
Bracket thresholds are held at these values in every simulated year. The simulator does not index state amounts for inflation.
Worked example
A retired couple, both 67, filing jointly, with $48,000 of Social Security, $40,000 of IRA withdrawals and a $20,000 pension. The figures are computed when the page is built, by the same state-tax function the simulator runs.
| IRA / 401(k) withdrawals + pension | $60,000 |
|---|---|
| Social Security in the state base ($48,000 received, $40,000 federally taxable) | $0 |
| Less retirement exclusion | −$0 |
| Less standard deduction | −$0 |
| Less personal exemptions | −$8,800 |
| Taxable in Massachusetts | $51,200 |
| Massachusetts income tax | $2,560 |
| Share of $108,000 gross income | 2.37% |
The couple’s next $1,000 of IRA withdrawals would add $50 of Massachusetts tax.
A single retiree, 67, with half those amounts ($24,000 of Social Security, $20,000 of IRA withdrawals, a $10,000 pension) owes $1,280, 2.37% of gross income, against the couple’s 2.37%.
| IRA / 401(k) withdrawals + pension | $30,000 |
|---|---|
| Social Security in the state base ($24,000 received, $11,300 federally taxable) | $0 |
| Less retirement exclusion | −$0 |
| Less standard deduction | −$0 |
| Less personal exemptions | −$4,400 |
| Taxable in Massachusetts | $25,600 |
| Massachusetts income tax | $1,280 |
| Share of $54,000 gross income | 2.37% |
As IRA withdrawals rise
The same couple, with Social Security and the pension unchanged, taking more from their IRAs (a larger withdrawal, a required minimum distribution or a Roth conversion all count as distributions here):
| IRA withdrawals | Massachusetts tax | Share of gross income | Next $1,000 adds |
|---|---|---|---|
| $0 | $560 | 0.82% | $50 |
| $20,000 | $1,560 | 1.77% | $50 |
| $40,000 | $2,560 | 2.37% | $50 |
| $80,000 | $4,560 | 3.08% | $50 |
| $120,000 | $6,560 | 3.49% | $50 |
| $200,000 | $10,560 | 3.94% | $50 |
Neighbouring states
The example couple’s state tax in Massachusetts and in the neighbouring states covered here, same income and ages:
| State | Income tax | Social Security | Couple’s tax | Difference |
|---|---|---|---|---|
| Massachusetts | 5%–9% | Exempt | $2,560 | n/a |
| New York | 3.9%–10.9% | Exempt | $154 | −$2,406 |
| Connecticut | 2%–6.99% | Exempt | $1,120 | −$1,440 |
| New Hampshire | None | Not taxed | $0 | −$2,560 |
Against Massachusetts, the couple would pay less in New York (−$2,406), Connecticut (−$1,440), New Hampshire (−$2,560). With $200,000 of IRA withdrawals instead of $40,000, they would owe $10,560 in Massachusetts, against New York ($8,533), Connecticut ($9,280), New Hampshire ($0).
What this page leaves out
What the simulator does and does not handle for Massachusetts, item by item[1]:
- Flat 5% plus the 4% surtax over $1,107,750 (2026, indexed) modeled as brackets.
- $8,800 married filing jointly exemption.
- Social Security exempt.
- No retirement exclusion (recovery of previously taxed IRA contributions ignored).
- Long-term capital gains at the ordinary 5% rate (the separate 8.5% short-term gains rate is ignored).
In every state the simulator also leaves out credits, itemized deductions, deductions that phase out with income, local income taxes, surtaxes and any deduction for federal tax paid. It holds state amounts fixed and does not index them for inflation.
See it over a full plan
If you already have a saved plan, the link only takes you to the Household panel, where the state is set; your plan is not changed.
Related
This page shows how the rules work. It is not financial, tax or investment advice. State law has details these pages leave out, so check the state’s own instructions or ask a tax professional before you act. See the disclaimer.
Sources
- Massachusetts figures: the source we used for Massachusetts (mass.gov) ↩
- IRS Publication 915: the federal worksheet for the taxable part of Social Security
Verified . The full verification record for this entry is in the sources ledger, with every other figure the simulator uses on the sources page.