Massachusetts does not tax Social Security benefits
Massachusetts has no state income tax on Social Security payments. If you receive Social Security retirement, survivor, or disability benefits, the state will not take a portion of those payments. This applies whether you live in Massachusetts year-round or moved there after you started receiving benefits.
The federal government may still tax your Social Security, depending on your total income. But Massachusetts itself — unlike about a dozen other states — does not add a state tax on top of the federal calculation. If you file a Massachusetts tax return, you do not report Social Security as taxable income on your state return.
Key Takeaways
- Massachusetts imposes no state income tax on Social Security retirement, survivor, or disability benefits under any circumstances.
- Federal taxation of Social Security still applies based on your combined income, but that is separate from state tax.
- You do not need to report Social Security income on your Massachusetts state tax return.
- If you moved to Massachusetts from another state that does tax Social Security, your state tax burden on those benefits stops immediately.
- Supplemental Security Income (SSI) is also not taxed by Massachusetts, though it is a different program from Social Security.
How federal Social Security taxation works
Even though Massachusetts does not tax Social Security, you may owe federal tax on your benefits. The Internal Revenue Service taxes Social Security based on your combined income, which includes wages, pensions, interest, dividends, and half of your Social Security benefits.
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, a single filer with combined income over $25,000 may owe federal tax on Social Security. A married couple filing jointly with combined income over $32,000 may owe federal tax. These thresholds have not changed since 1984, so more people cross them each year as incomes rise.
You can reduce your federal tax bill by managing other income — for example, by timing when you withdraw from retirement accounts or by claiming certain deductions. A tax professional or the IRS can help you calculate whether you will owe federal tax on your specific situation.
What counts as income for the federal calculation
The federal combined income test includes more than just Social Security and wages. It counts half of your Social Security benefit amount, plus all of your adjusted gross income, plus any tax-exempt interest you earned (such as interest from municipal bonds).
Common sources of income that push you over the threshold include a part-time job, a pension from a former employer, rental income, capital gains from selling investments, and withdrawals from a traditional IRA or 401(k). Even if you do not owe income tax on some of these sources in Massachusetts, they still count toward the federal Social Security taxation threshold.
Income from a Roth IRA conversion counts toward the threshold in the year of conversion, even though you do not owe income tax on the conversion itself. This is one reason some people space out Roth conversions over multiple years.
Supplemental Security Income (SSI) in Massachusetts
Massachusetts also does not tax Supplemental Security Income, which is a separate federal program for people with low income and limited resources. SSI is means-tested, meaning you must have very little income and assets to receive it. Social Security retirement and disability benefits are not means-tested — you can have any amount of savings and still receive them.
Some people receive both Social Security and SSI at the same time. In Massachusetts, neither payment is taxed by the state. The federal government also does not tax SSI, so if you receive only SSI with no other income, you will owe no federal tax either.
If you receive both Social Security and SSI, only the Social Security portion may be subject to federal taxation, and only if your combined income exceeds the threshold described above.
Moving to Massachusetts from a state that taxes Social Security
If you moved to Massachusetts from a state like Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, or Vermont — all of which tax Social Security to some degree — your state tax burden on Social Security stops on the date you become a Massachusetts resident.
You may still owe tax to your former state on benefits received while you lived there. File a part-year return with that state for the months you lived there, and a full-year return with Massachusetts for the remainder of the year. Your former state's tax authority can tell you the exact deadline and form to use.
Keep documentation of your move — a lease, utility bill, or driver's license showing your new Massachusetts address — in case either state asks when you changed residency.
Filing taxes in Massachusetts as a Social Security recipient
You file a Massachusetts tax return using Form 1, the Massachusetts Individual Income Tax Return. You do not report Social Security on this form at all, whether or not you owe federal tax on it.
If you also received income from work, a pension, or investments, you report those on your Massachusetts return. You may owe state tax on those sources even if you owe no federal tax on Social Security. Massachusetts has a state income tax rate of 5 percent on most income, though certain types of income (such as long-term capital gains and dividends) are taxed at 5.1 percent.
You do not need to file a Massachusetts return at all if your income from non-Social Security sources falls below the filing threshold. For 2024, the threshold is $15,000 for a single filer and $30,000 for a married couple filing jointly. Check the Massachusetts Department of Revenue website each year for current thresholds, as they adjust for inflation.
Frequently Asked Questions
If I move back to another state after living in Massachusetts, do I owe back taxes on Social Security?
No. Each state taxes only the income you earned while you lived there. Once you leave Massachusetts, you owe no Massachusetts tax on Social Security received after you move. Your new state's rules apply going forward.
Does the Massachusetts property tax exemption for seniors affect Social Security taxation?
No. The property tax exemption and Social Security taxation are separate. Massachusetts does not tax Social Security income regardless of whether you receive a property tax break. The exemption is based on age and property value, not income.
What if I worked in another state but now live in Massachusetts and receive Social Security?
It does not matter where you worked or where you earned your Social Security credits. Massachusetts does not tax Social Security based on where you worked. You pay no state tax on your benefits as long as you live in Massachusetts.
Do I need to report Social Security to Massachusetts if I owe federal tax on it?
No. You report it only to the federal government on your federal tax return (Form 1040). Your Massachusetts return does not include Social Security income at all, even if the IRS taxes it.
Can I claim a credit or deduction on my Massachusetts return for federal tax I paid on Social Security?
No. Massachusetts does not offer a credit for federal tax paid. However, you may be able to claim other credits on your state return, such as the Earned Income Tax Credit or the Dependent Exemption Credit, depending on your situation.