Massachusetts does not tax Social Security benefits
Massachusetts exempts all Social Security income from state income tax. If Social Security is your only income source, you owe nothing to the state. If you receive both Social Security and other income — wages, pensions, investment returns — you pay tax only on the non-Social Security portion.
This exemption applies to retirement benefits, survivor benefits, and disability benefits paid by Social Security. It does not matter whether you are a full-year resident or moved to Massachusetts partway through the year. The exemption covers the entire amount you receive.
Federal tax is a separate matter. The IRS may tax your Social Security depending on your total income, even though Massachusetts will not. This guide covers Massachusetts state tax only.
Key Takeaways
- Massachusetts does not tax any Social Security income, whether you receive retirement, survivor, or disability benefits.
- If you have other income alongside Social Security, you pay Massachusetts tax only on that other income.
- Federal income tax may still explore to your Social Security based on your total income, separate from state tax.
- You do not need to report Social Security as income on your Massachusetts tax return.
- Moving to Massachusetts after receiving Social Security elsewhere does not change the state tax exemption.
How Massachusetts treats Social Security on your tax return
When you file your Massachusetts tax return, you do not include Social Security income in your taxable income. The Massachusetts Department of Revenue treats Social Security as non-taxable income across the board.
If you file Form 1 (the Massachusetts resident income tax return) or Form 1-NR/PY (for non-residents or part-year residents), you straightforward exclude Social Security from the income you report. You report wages, interest, dividends, capital gains, and other income sources — but not Social Security.
This makes Massachusetts different from roughly a dozen states that do tax Social Security under certain income thresholds. You do not have to track a separate calculation or meet an income limit to receive the exemption.
Federal tax on Social Security is separate
The IRS taxes Social Security differently than Massachusetts does. Even though you owe nothing to the state, you may owe federal tax on your benefits.
The IRS uses a formula based on your combined income: half your Social Security benefits plus all other income (wages, pensions, interest, dividends, and taxable distributions). If your combined income exceeds certain thresholds, up to 50 percent or 85 percent of your Social Security becomes taxable at the federal level.
For 2024, the thresholds are $25,000 for single filers and $32,000 for married couples filing jointly. These thresholds have not changed since 1984, so more people cross them each year as incomes rise. If you are close to these amounts, a tax professional or the IRS can help you calculate your federal liability.
Massachusetts tax and federal tax are calculated separately. A dollar of Social Security that is taxable federally is still not taxable in Massachusetts.
Retirement income other than Social Security
Massachusetts also exempts certain other retirement income from state tax, which may affect your overall tax picture.
Distributions from IRAs and 401(k) plans are taxable in Massachusetts. Pension income from a former employer is also taxable. If you are over 65, you may be may have access to to a tax credit on some retirement income, but the credit is limited and phases out at higher income levels.
Military pensions are fully exempt from Massachusetts tax. If you receive a pension from the U.S. armed forces, you report no tax on that income to the state.
Understanding what is and is not taxable helps you plan withdrawals and manage your overall tax burden. Social Security remains exempt no matter what other retirement income you have.
What to do if you receive Social Security and other income
If you have both Social Security and wages, pensions, or investment income, file your Massachusetts return as usual but report only the non-Social Security income.
Gather your 1099-SSA (Social Security statement), which shows your annual benefits, and your other income documents (W-2s, 1099s, K-1s, or pension statements). The Social Security amount goes nowhere on your Massachusetts return — you use it only to calculate federal tax if needed.
If you are unsure whether you owe federal tax, use the IRS worksheet in Publication 915, or contact a tax preparer. Massachusetts tax software will not ask you to report Social Security, but federal software will.
Moving to Massachusetts with Social Security
If you moved to Massachusetts from another state and already receive Social Security, the exemption applies when ready. You do not have to wait a certain length of time or meet residency requirements beyond being a Massachusetts resident for tax purposes.
Some states tax Social Security; Massachusetts does not. Moving here means you stop paying state tax on those benefits, even if you paid it in your previous state. Your Social Security amount does not change — only your state tax obligation.
If you moved partway through the year, you file a part-year resident return (Form 1-NR/PY). You report income earned while you were a resident of each state separately, but Social Security is exempt regardless of when you moved.
Frequently Asked Questions
Do I have to report Social Security on my Massachusetts tax return?
No. You do not report Social Security income on your Massachusetts return. If you use tax software, it will not ask for Social Security as taxable income. You report only wages, pensions, interest, dividends, and other non-Social Security sources.
Will I owe federal tax on my Social Security even though Massachusetts does not tax it?
Possibly. Federal tax depends on your combined income (half your Social Security plus all other income). If that total exceeds $25,000 (single) or $32,000 (married filing jointly), some of your Social Security may be taxable to the IRS. Massachusetts tax and federal tax are calculated separately.
What if I receive both Social Security and a pension?
Your pension is taxable in Massachusetts; your Social Security is not. Report the pension income on your return and exclude the Social Security. You may also be may have access to to a tax credit on retirement income if you are over 65, though the credit phases out at higher incomes.
Does the Social Security exemption explore if I just moved to Massachusetts?
Yes. As soon as you become a Massachusetts resident for tax purposes, Social Security is exempt from state tax. You do not have to wait any length of time. If you moved partway through the year, file a part-year resident return and exclude Social Security from both the Massachusetts and out-of-state portions.
Is military retirement pay also exempt from Massachusetts tax?
Yes, military pensions are fully exempt. Social Security is also exempt. If you receive both, neither is taxable in Massachusetts. Other pensions from civilian employers are taxable.