Military retirement pay in Massachusetts
Varies
Does Massachusetts Tax Military Retirement Pay?
Short answer: No. Massachusetts fully exempts military retired pay from state income tax. Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Massachusetts' flat rate (above any previously taxed contributions) with no general retirement exclusion.
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Massachusetts
Varies
Individuals / Personal Taxes
No. Massachusetts fully exempts military retired pay from state income tax. Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Massachusetts' flat rate (above any previously taxed contributions) with no general retirement exclusion.
Business justification
No. Massachusetts fully exempts military retired pay from state income tax. Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Massachusetts' flat rate (above any previously taxed contributions) with no general retirement exclusion. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions