Does Massachusetts Tax Social Security? How It Compares to Other States

Retiring in Massachusetts comes with a benefit many people overlook—but it’s one that can make a big difference. The state does not tax Social Security benefits. For retirees who rely on that monthly check, this creates a bit more stability in an otherwise unpredictable financial phase of life.

Compared to other states, this policy places Massachusetts in a select group that offers full protection for Social Security income. It’s not just a small technical detail—it’s a key part of how retirees can plan their budgets and decide where to live during their later years.

Social Security

Massachusetts excludes Social Security from its taxable income. That means every dollar you receive from Social Security stays in your pocket at the state level. The federal government may still tax a portion of it depending on your total income, but Massachusetts leaves it alone.

This policy treats Social Security like a basic form of retirement protection—similar to certain government pensions. It recognizes that for many seniors, these benefits represent their most dependable income stream.

Retirement Taxes

Even though Social Security gets special treatment, not all retirement income in Massachusetts is tax-free. Here’s a look at how the state treats common types of retirement income:

• Traditional IRA and 401(k) withdrawals: Taxed as regular income once distributions begin
• Private pensions: Fully taxable
• Out-of-state public pensions: Taxable in Massachusetts
• Massachusetts public pensions: Often exempt, but it depends on your employment system
• Investment income: Subject to capital gains and other tax rules

So while you may get a break on Social Security, the state still collects taxes on a variety of other retirement earnings.

Type of Income	Taxable in MA?
Social Security	No
Traditional IRA/401(k)	Yes
Private Pension	Yes
MA Public Pension	Usually No
Out-of-State Public Pension	Yes
Investment Income	Yes

Comparison

Massachusetts joins a minority of states that do not tax Social Security at all. As of 2025, here’s how the country breaks down:

• No tax on Social Security: Massachusetts, Florida, Texas, Nevada, and about a dozen others
• Partial tax, with income limits: Colorado, Connecticut, Kansas, Nebraska, among others
• Full tax depending on income: Minnesota and Vermont have traditionally taxed benefits more aggressively, though even these states are starting to reconsider

In contrast, states with no income tax at all—like Florida, Texas, and Tennessee—also exempt Social Security but go even further by not taxing pensions or retirement account withdrawals either.

Planning

For retirees who rely heavily on Social Security, the Massachusetts exemption offers peace of mind. You know the exact amount you’ll receive each month without worrying about the state skimming off a portion.

Even for retirees with mixed income—say, part Social Security and part savings or pension—the fact that the base Social Security amount is protected helps build a more stable financial plan. It provides a predictable core of income, even if your investment income or tax burden shifts year to year.

It also plays a role in relocation decisions. Some states have high retirement taxes or phase-outs that make financial planning difficult. Massachusetts, with its clear exemption, gives retirees more confidence, even though its overall cost of living can be higher.

For people weighing where to spend their retirement years, Massachusetts offers a mix of cultural richness, healthcare access, and now, a little-known but meaningful tax perk.

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