What a taxable index-fund account is actually worth after expense-ratio drag and after Massachusetts takes its share of the gain — which, in most states, is not at the federal preferential rate.
There is no state equivalent of the federal preferential rate here — a long-term gain is charged at Massachusetts's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. LONG-TERM gains are taxed at the ordinary 5% Part B rate under M.G.L. c. 62 sec. 4(c), which is why this is recorded as 'ordinary'. TWO CARVE-OUTS ARE NOT CAPTURED BY THAT FIELD. Short-term gains — assets held one year or less — are Part A income taxed at 8.5%, reduced from 12% by St. 2023 c. 50 sec. 8; a short-term gain will therefore be understated here. Long-term gains on COLLECTIBLES are taxed at 12% subject to a 50% deduction, roughly 6% effective. Qualified Massachusetts small-business stock held at least three years gets 3%. Capital gains ARE in the surtax base, and because negative Parts are treated as zero rather than netted, a single large gain from a home or business sale commonly triggers the 4% surtax — the Department states explicitly that there is no exclusion for gain on a personal residence.
What your state actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, not a yes/no list.
2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.
When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.
What retiring actually costs across all fifty states in 2026 — the three lines that decide it, why ranking states by income tax gets the answer wrong, the federal rules that follow you everywhere, and the decisions that are worth real money before you move.
Massachusetts charges $2,830 in state income tax on a typical retirement income, $6,900 in property tax on its median home and $2,075 in insurance — $11,805 together, which is 46th of 50.
What moving actually saves, on your own income mix rather than a headline rate — and how to establish domicile so the state you left cannot follow you.
Which account to draw first, priced. The three cliffs a withdrawal can cross without warning, the conversion window almost nobody uses, and why the order is the last big decision you can still change.