Retirement Tax Breakdown for Massachusetts Residents

Complete Massachusetts retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #42 of 51.

State Income Tax
9% top rate

2 bracket(s)

Capital Gains Rate
5%

Treated as capital income

Property Tax Rate
1.14%

#18 (Moderate)

Sales Tax Rate
6.3%

State 6.25% + local avg 6.3%

Less Tax-Friendly State

Massachusetts taxes short-term capital gains at 12% and long-term at 5%. Social Security is exempt but pensions are taxed. The millionaire tax adds a 4% surcharge over $1M.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Taxable

Retirement Exemption

None

Tax Comparison Summary

State income tax9% top
Capital gains5%
Property tax1.14% effective
Sales tax6.3% combined
Overall retiree rank#42 of 51

Massachusetts Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
5%$0$1,000,000
9%$1,000,000No limit

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