What is the Massachusetts state income tax rate in 2026?
Massachusetts taxes income at a flat 5.00% in 2026, and a further 4.00% applies to taxable income over $1,107,750. Example: a married couple, both 70, with $40,000 of Social Security, a $30,000 private pension and $30,000 of IRA withdrawals ($100,000 in all; the pension and IRA money split evenly between them) owes $2,490 of Massachusetts income tax (2.5% of their income) and $5,087 of federal tax; a single 62-year-old with $24,000 of Social Security, an $18,000 pension and $18,000 of IRA withdrawals ($60,000 in all) owes $1,580 to Massachusetts and $4,111 federal. The schedule, how Massachusetts treats each kind of retirement income, and its local taxes follow.
How Massachusetts taxes retirement income in 2026
| Standard deduction or personal exemption | $4,400 single, $8,800 married filing jointly, $6,800 head of household. (Massachusetts Department of Revenue; rules) |
|---|---|
| Social Security | Social Security benefits are fully exempt: none of the federally taxable amount enters the state base. (Massachusetts Department of Revenue; rules) |
| Pensions, annuities and IRA/401(k) withdrawals | No exclusion: pension, annuity and IRA/401(k) distributions are taxed as ordinary income. (Massachusetts Department of Revenue; rules) |
| Government pensions | Public (government) pension dollars are exempt with no dollar cap. They do not use up the capped exclusion that other retirement income may claim. (Massachusetts Department of Revenue; rules) |
| Age 65 and older | At age 65 or older: $700 is subtracted from the base ($1,400 for a married couple filing jointly when both qualify), against any income. (Massachusetts Department of Revenue; rules) |
| Capital gains | Net long-term gain is taxed as ordinary income. Net short-term gain is taxed at its own 8.5% rate, not the ordinary rate. (Massachusetts Department of Revenue; rules) |
Local income taxes: none in Massachusetts. The local income taxes the tax engine computes for 2026 are in Delaware, Indiana, Iowa, Kentucky, Maryland, Michigan, Missouri, New York, Ohio, Oregon and Pennsylvania.
Your whole 2026 return in Massachusetts, federal and state together, ends in a refund or an amount owed: 2026 tax return calculator (free) → What five typical retiree households owe or get back in Massachusetts and every other state: the 2026 tax return study.
Figures for 2026 from QuantCalc’s open tax engine (federal 2.6.1, state 1.28.0), for a full-year resident. An estimate, not tax advice: credits, itemized deductions and rules this page does not ask about change a real return. Every Massachusetts rule with its official sources: Massachusetts rules and sources.
In QuantCalc's 51-state planner study — one married couple, both 60, $2M, $80,000 a year to spend after tax, 10,000 paths per jurisdiction — the median path in Massachusetts pays $272,613 of federal and state income tax and Medicare IRMAA over 30 years, $109,984 of it Massachusetts state income tax, $110,016 more than in the 16 jurisdictions that charge this couple no state tax. That ranks #49 of 51 by lifetime tax (1 = lowest). The plan succeeds in 81.55% of paths. State tax is part of the optimization here — the playbook below shows the federal-state-ACA stack.
The MA verdict
For a retiree planning withdrawals in 2026, Massachusetts is one of the higher-burden states for retirees, especially on traditional pre-tax withdrawals. One flat bracket plus a millionaire surcharge above the surtax threshold, and a $2M estate exemption.
Massachusetts reaches 9.00% only above $1,107,750 of taxable income: a 5.00% bracket rate plus a 4.00% surcharge on the excess. None of the conversions modelled on this page comes near that threshold, so the surcharge adds nothing to their state tax.
Massachusetts has no dollar-capped retirement-income exclusion, so every converted dollar enters the state tax base. The marginal cost of a conversion here is the federal bracket plus the state rate plus, below 65, whatever premium tax credit crossing the 400% FPL cliff would cost you.
Worked example: $30k Roth conversion in Massachusetts
Consider a married couple age 58 in Massachusetts with $75,000 of wages (their MAGI), both on ACA Marketplace coverage. They want to convert $30,000 from a traditional IRA to a Roth. The Massachusetts state tax on that conversion is $1,500 — 5.0% of the amount converted. Federal income tax adds another $3,600 — the whole conversion is taxed in the federal 12% bracket. And because the conversion pushes their MAGI to $105,000 — over the 400% FPL cliff of $84,600 — they lose their full ACA premium tax credit, $11,306 a year at Massachusetts's average benchmark Silver premium. Total cost of the $30,000 conversion: $16,406, or an effective 54.7% marginal rate. Each Massachusetts tax figure for a conversion on this page is QuantCalc's state tax engine run on the couple's whole 2026 Massachusetts return twice, without the conversion and with it, with every amount split evenly between the two spouses, so Massachusetts's own brackets, deductions, exemptions and credits are all applied. The federal-state-ACA stack matters in Massachusetts.
Cost breakdown
| Component | Amount |
|---|---|
| Federal income tax (12% bracket) | $3,600 |
| Massachusetts state income tax | $1,500 |
| ACA premium tax credit clawback | $11,306 |
| Total cost on $30,000 conversion | $16,406 (54.7% effective) |
Scenario B (high-tax): cliff-protective $15k conversion in Massachusetts
A Massachusetts couple aged 58 with $66K of wages (their MAGI), both on a Silver-tier Marketplace plan converts only $15,000, which keeps their MAGI at $81,000, under the $84,600 400% FPL cliff. Staying under it matters because crossing it in Massachusetts layers state tax, federal tax, AND the loss of the whole premium tax credit ($10,708 a year for this couple at $81,000) on top of each other. State tax on $15k: $750 — 5.0% of the amount converted. Federal income tax added: $1,800 (the whole conversion is taxed in the federal 12% bracket). PTC preserved. Total: $2,550, an effective rate of 17.0%. In a high-tax state, the optimization is small annual conversions over many years — never a single 'big year' if Marketplace coverage is in play.
What the planner's Monte Carlo says about Massachusetts
QuantCalc Research ran one married couple through QuantCalc's retirement planner in each of the 51 jurisdictions: both 60, $2,000,000 ($1,400,000 traditional, $600,000 Roth), a 60/40 portfolio, $80,000 a year to spend after tax for 30 years, no Social Security, 10,000 paths each. The planner's federal and state tax engines price every year, and it picks the withdrawals and Roth conversions. Here is Massachusetts beside the lowest- and highest-tax results:
| Metric | Massachusetts | No state tax (16 jurisdictions) | Oregon (highest) |
|---|---|---|---|
| Median lifetime tax, federal + state + IRMAA (30y) | $272,613 | $162,597 | $309,718 |
| State income tax (30y, sum of yearly medians) | $109,984 | $0 | $146,914 |
| State income tax in the first year (age 60) | $4,090 | $0 | $5,838 |
| 30-year success rate | 81.55% | 84.05% | 80.61% |
| Median balance at 90 | $1,899,750 | $2,153,150 | $1,801,272 |
| Rank by lifetime tax (of 51, 1 = lowest) | #49 | #1 | #51 |
Across all 51 jurisdictions the success rate runs from 80.61% to 84.05%: for this couple the state changes the tax bill far more than the odds of the money lasting. Dollars are today's dollars. Source: QuantCalc 51-State Retirement Monte Carlo (v2026.3, re-run 2026-10-12) — 510,000 planner paths, methodology and dataset released CC-BY-4.0. Every jurisdiction's row uses the same household and the same market paths; only the state of residence changes.
How Massachusetts treats capital gains in retirement
Net long-term gain is taxed as ordinary income. Net short-term gain is taxed at its own 8.5% rate, not the ordinary rate. Ordinary income in Massachusetts is taxed at up to 5.00% in 2026. That stacks on top of federal LTCG (0%/15%/20%) and the 3.8% NIIT for high earners. (Massachusetts Department of Revenue; rules)
Why the ACA cliff hits hard in Massachusetts
The 400% federal-poverty-level cliff is federal, not state-specific — but its dollar impact depends on the benchmark Silver-plan premium in your county. Massachusetts's Marketplace pricing and your household composition determine the size of the subsidy at risk. A couple aged 58 with MAGI of exactly $84,600 still has $10,350 a year of premium tax credit at Massachusetts's average benchmark Silver premium, and all of it is on the line. With the 2021–2025 enhanced credit expired, $1 of additional MAGI above 400% FPL eliminates the entire credit.
For 2026 the 400% FPL threshold is:
Roth conversion strategy for Massachusetts
The MA-specific playbook depends on tier:
- Identify your cliff distance. Compute MAGI from all income sources (wages, capital gains, interest, dividends, traditional withdrawals). Find your headroom under 400% FPL. Use the live cliff widget above for a quick check.
- Stay under the cliff if you can. In Massachusetts at 5.00%, the marginal cost of going over the cliff is federal tax + state tax + full PTC clawback. The break-even conversion size is smaller than in tax-free states.
- If you must go over, convert big. Once you've crossed the cliff, additional conversion dollars only cost federal + state tax (no incremental PTC loss). A "rip the bandage" conversion year can be efficient if you have many traditional dollars to move.
- Coordinate with capital gains and the 0% LTCG bracket. Net long-term gain is taxed as ordinary income. Net short-term gain is taxed at its own 8.5% rate, not the ordinary rate. Ordinary income in Massachusetts is taxed at up to 5.00% in 2026. That stacks on top of federal LTCG (0%/15%/20%) and the 3.8% NIIT for high earners. (Massachusetts Department of Revenue; rules)
- Plan ahead for IRMAA. The IRMAA Medicare premium surcharge has a 2-year lookback. A Massachusetts resident in their early 60s converting today will see IRMAA implications at 65. See RMD + IRMAA calculator for the lookback math.
State tax basics for Massachusetts retirees
| Question | Massachusetts |
|---|---|
| State income tax | 9.00% top marginal |
| Number of brackets | 1 |
| Social Security taxed | No |
| 401(k) / Traditional IRA taxed | Yes |
| Retirement-income exclusion (couple) | None |
| Roth conversion draws that exclusion | Not applicable |
| State estate / inheritance tax | Yes |
| Retirement-friendliness tier | high tax |
| Notable feature | one flat bracket plus a millionaire surcharge above the surtax threshold, and a $2M estate exemption |
| 30-yr planner success rate | 81.55% |
| Median 30-yr tax, federal + state + IRMAA (rank) | $272,613 (#49/51) |
Model your full Massachusetts retirement scenario
Free Monte Carlo (100 paths per run; 10,000 with PRO) with state-specific tax engine, ACA cliff, Roth conversion optimizer, IRMAA lookback — free, no signup.
Run a free simulation →What a year-end move does to your Massachusetts and federal tax in 2026
Each move changes three bills at once: the federal return, the Massachusetts return and, for anyone on Medicare, the IRMAA surcharge the 2026 income sets for 2028. Example: a married couple, both 72, with a $40,000 pension, $50,000 of Social Security, a $30,000 IRA withdrawal and $10,000 of long-term gains already realized in 2026, the pension, the IRA money and the conversion split evenly between them on the state return. Each row is that year with one move made, against the same year without it (negative = less tax).
| Move (by December 31, 2026) | Federal tax | Massachusetts tax | IRMAA in 2028 |
|---|---|---|---|
| Convert $25,000 to a Roth IRA | $3,165 | $1,250 | $0 |
| Send $10,000 of the IRA withdrawal to charity as a QCD | −$1,200 | −$500 | $0 |
| Harvest a $5,000 loss against the year's gains | $0 | −$250 | $0 |
An estimate from QuantCalc’s open tax engine (federal 2.6.1, state 1.28.0) for the 2026 tax year. Not tax advice: your return depends on facts this page does not ask about, so check a move with your tax preparer or custodian before acting. IRMAA uses the 2026 tiers for two people on Medicare; the 2028 tiers are not published yet. How the engine computes each line, with its official source: federal, Massachusetts.
Related calculators and reading
- All-states retirement tax comparison — see Massachusetts alongside the other 50 jurisdictions.
- Massachusetts minimum wage 2026 — the hourly rate, scheduled increases and take-home pay after tax, from the official sources.
- State Retirement Tax Data 2026 — the per-jurisdiction rate, exclusion and Social Security figures behind this page, as CSV and JSON.
- Massachusetts side by side with another state's retirement taxes: Massachusetts vs New Hampshire.
- ACA Subsidy Cliff Optimizer — find the largest Roth conversion that keeps you under 400% FPL.
- Roth Conversion Optimizer — bracket-fill vs. fixed-amount strategy comparison.
- RMD + IRMAA Calculator — Medicare premium surcharge based on 2-year-old MAGI.
- Safe Withdrawal Rate Calculator — sequence-of-returns-aware withdrawal planning.
- Research: 51-State 30-year Monte Carlo (2026) — full ranking and dataset.
- Research: Monte Carlo ACA Cliff 2026 — 80,000-path study of the cliff cost.
FAQ
What is the Massachusetts state income tax rate in 2026?
Massachusetts taxes income at a flat 5.00% in 2026, and a further 4.00% applies to taxable income over $1,107,750. The full schedule and Massachusetts's deductions are on this page (Massachusetts Department of Revenue; rules).
How much state income tax does a retiree pay in Massachusetts?
It depends on the kind of income. In 2026, a married couple, both 70, with $40,000 of Social Security, a $30,000 private pension and $30,000 of IRA withdrawals ($100,000 in all; the pension and IRA money split evenly between them) owes $2,490 of Massachusetts tax, and a single 62-year-old with $24,000 of Social Security, an $18,000 pension and $18,000 of IRA withdrawals ($60,000 in all) owes $1,580. Federal tax comes on top: $5,087 and $4,111.
Does Massachusetts tax Social Security benefits?
No. Social Security benefits are fully exempt: none of the federally taxable amount enters the state base. (Massachusetts Department of Revenue; rules)
Does Massachusetts tax pensions, 401(k) and IRA withdrawals?
No exclusion: pension, annuity and IRA/401(k) distributions are taxed as ordinary income. Public (government) pension dollars are exempt with no dollar cap. They do not use up the capped exclusion that other retirement income may claim. (Massachusetts Department of Revenue; rules)
Does Massachusetts have local income taxes?
No. No county, city or school district in Massachusetts levies an income tax that the tax engine computes for 2026.
Does Massachusetts tax Roth conversions?
Yes. A $30,000 conversion by a couple aged 58 with $75,000 of wages adds $1,500 of Massachusetts tax — 5.0% of the amount converted — on top of federal tax and any ACA subsidy clawback. Each Massachusetts tax figure for a conversion on this page is QuantCalc's state tax engine run on the couple's whole 2026 Massachusetts return twice, without the conversion and with it, with every amount split evenly between the two spouses, so Massachusetts's own brackets, deductions, exemptions and credits are all applied.
What is Massachusetts's 30-year Monte Carlo retirement success rate?
In QuantCalc's 51-state planner study, one married couple (both 60, $2M, 60/40, $80,000 a year to spend after tax, 10,000 paths) succeeds in 81.55% of paths in Massachusetts; across all 51 jurisdictions the rate runs from 80.61% to 84.05%. The median path pays $272,613 of federal and state income tax and IRMAA over 30 years, $109,984 of it Massachusetts state income tax.
What is the ACA cliff in Massachusetts for 2026?
The ACA premium-tax-credit cliff is a federal threshold, not state-specific. For a household of two in 2026, it sits at 400% of the federal poverty level — $84,600. Crossing it by even $1 of MAGI eliminates the full subsidy now that the 2021-2025 enhanced credit has expired.
Is Massachusetts a good state to retire for tax purposes?
Massachusetts is one of the higher-burden states for retirees, especially on traditional pre-tax withdrawals. One flat bracket plus a millionaire surcharge above the surtax threshold, and a $2M estate exemption. In our planner study it ranks #49 of 51 by median lifetime tax (1 = lowest).
Does Massachusetts have a state estate or inheritance tax?
Yes — Massachusetts has a state-level estate or inheritance tax in addition to the federal estate tax. Plan transfers accordingly.
How does Massachusetts tax capital gains?
Net long-term gain is taxed as ordinary income. Net short-term gain is taxed at its own 8.5% rate, not the ordinary rate. Ordinary income in Massachusetts is taxed at up to 5.00% in 2026. That stacks on top of federal LTCG (0%/15%/20%) and the 3.8% NIIT for high earners. (Massachusetts Department of Revenue; rules)
Last updated 2026-11-05. State income tax figures reflect the 2026 schedule published by Massachusetts's tax authority. ACA poverty-level figures: the 2025 HHS poverty guidelines for the 48 contiguous states and DC ($15,650 for one person, plus $5,500 for each additional person; 90 FR 5917), which set 2026 Marketplace coverage. Premium tax credit estimates use Massachusetts's average benchmark Silver premium. Monte Carlo numbers from the QuantCalc 51-state planner study (v2026.3, re-run 2026-10-12, CC-BY-4.0). This page is educational. Not tax, legal, or financial advice — consult a qualified advisor.