Retirement income in Massachusetts
Varies
Does Massachusetts Tax Retirement Income?
Short answer: Yes. Private pensions and 401(k)/IRA withdrawals are taxed at Massachusetts' flat rate (above any previously taxed contributions) with no general retirement exclusion.
Government pensions: Pensions from Massachusetts state/local contributory systems, the federal contributory system, and other states' contributory systems that exempt Massachusetts pensions are exempt. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
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.
Retirement income in Massachusetts
Varies
Individuals / Personal Taxes
Yes. 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
Yes. Private pensions and 401(k)/IRA withdrawals are taxed at Massachusetts' flat rate (above any previously taxed contributions) with no general retirement exclusion. Government pensions: Pensions from Massachusetts state/local contributory systems, the federal contributory system, and other states' contributory systems that exempt Massachusetts pensions are exempt. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions