Massachusetts retirement tax calculator

What Massachusetts actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, against the state’s own brackets and exclusions rather than a yes-or-no list.

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Massachusetts guide

Retiring in Massachusetts: What the State Actually Takes

  • On $95,000 of retirement income a single filer pays $2,830 in Massachusetts state income tax, an effective rate of 3%.
  • The income tax, property tax and insurance together come to $11,805, which ranks Massachusetts 46th of 50 on what retiring there actually costs.
  • Property tax runs about $6,900 a year on the state's $690,000 median home, and average home insurance $2,075.

On the ordinary retirement profile — $34,000 of Social Security and $61,000 of plan distributions — Massachusetts takes $2,830 a year in state income tax.

That is the number people compare, and it is the smallest of three. Property tax adds about $6,900 on the state's $690,000 median home, and insurance another $2,075. The three together come to $11,805, placing Massachusetts 46th of 50.

A note before you start. This is general education, not tax advice. Every Massachusetts figure comes from this site's own fifty-state income-tax dataset and its retirement tax engine, computed for a single filer aged 70 unless stated otherwise; property tax, median home price and insurance figures come from the site's core state dataset. Rates are for tax year 2026. Property tax is assessed locally in most states, so the effective rate here is a statewide figure rather than your county's.

1. What Massachusetts takes from retirement income

On Social Security. Fully exempt at every income level. Massachusetts never adopted IRC section 86, so benefits are simply not part of Massachusetts gross income — there is no income-based phase-in, no partial inclusion, and no age test. One consequence worth knowing: because benefits are excluded, Medicare premiums withheld from them are not deductible either.

On 401(k) and IRA distributions. 401(k) and 403(b) distributions are fully taxable at 5%. Massachusetts never allowed a deduction for traditional IRA contributions, so every contribution created Massachusetts basis, and distributions are excluded from Massachusetts income until that previously-taxed basis is recovered — basis-first, not pro-rata, computed on a Schedule X line 2 worksheet with separate worksheets per spouse. One edge case runs the other way: a Massachusetts resident who inherits a non-Massachusetts IRA is taxed on the entire distribution, since no Massachusetts tax was ever paid on the contributed income.

Read the full Massachusetts guide →17 min read · Updated 2026-09-03