State guide
Does Massachusetts tax retirement income? IRAs, Roth conversions and Social Security (2026)
By Secure Retirement PlannerUpdated
If you retire in Massachusetts, Social Security is not taxed, but private pensions and IRA withdrawals are taxed at a flat 5%. Your Roth conversion is taxed at 5% too. But the state only taxes the part above the IRA contributions it already taxed. Massachusetts never let you deduct IRA contributions, so those dollars come out first and tax-free.
The state's tax instructions include a worksheet for this. A very large conversion can also trigger the 4% surtax. For 2026 it applies to Massachusetts taxable income over $1,107,750. If you are married filing jointly, you and your spouse get one threshold, not two.
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The short version
- Massachusetts taxes your Roth conversion at 5%, after you get back the IRA contributions it already taxed.
- Your Massachusetts basis comes out first. Federal tax uses a different, pro rata rule.
- If you rolled money into your IRA from a 401(k), it generally has no Massachusetts basis and is fully taxable.
- The 4% surtax applies to taxable income over $1,107,750 for 2026. Your conversion counts, so spreading a large one over several years can avoid it.
- Massachusetts does not tax your Social Security.
Does Massachusetts tax retirement income?
Partly. Massachusetts does not tax your Social Security. Your private pension, IRA and 401(k) withdrawals and Roth conversions are taxed at a flat 5%. Government pensions follow their own state rules, so check yours on its own.
| Income type | Taxed by Massachusetts in 2026? | Notes |
|---|---|---|
| Social Security | No | Not part of Massachusetts gross income |
| Public pensions | Check with a state tax preparer | Government pensions have their own state rules |
| Private pensions | Yes | Flat 5%, with no general retirement income break |
| IRA and 401(k) withdrawals | Yes, above your MA basis | IRA contributions MA already taxed come out first. 401(k) money generally has no MA basis |
| Roth conversions | Yes, above your MA basis | 5%, plus a 4% surtax on taxable income over $1,107,750 |
Does Massachusetts tax a Roth conversion?
Yes, but often less than the full amount. The state's instructions list Roth conversions with traditional IRA payouts. Your rate is 5%, the same flat rate the state uses for most income.
The key difference from federal law is your basis. The state does not let you deduct IRA contributions. So the 2025 Form 1 instructions say your IRA payouts are not taxable until you get back all your contributions the state already taxed. That includes rollover contributions.
Your federal return works differently. If you deducted your contributions federally, your whole conversion is federally taxable. On your state return, the contributions you made while you lived there come back to you first, with no tax.
How do I figure the taxable part in Massachusetts?
You use the Schedule X, Line 2 Worksheet in the Form 1 instructions. In short, it compares your IRA payouts and Roth conversions for the year with the contributions the state already taxed. It subtracts what you took out in earlier years. Only the amount above that is taxable.
If you are married filing jointly, you each fill out a separate worksheet. Your bank's Form 1099-R shows the full amount, so you need your own records of past contributions. The state can ask you to prove them.
| Money in your IRA | Massachusetts basis? |
|---|---|
| IRA contributions you made while a Massachusetts resident | Yes, MA never allowed a deduction |
| 401(k) or other deferred plan money rolled into an IRA | Generally no, fully taxable when it comes out |
| 401(k) money converted to a Roth IRA and taxed at conversion | Generally treated as previously taxed when later withdrawn |
| Keogh contributions made before 1975 | No, those were deductible |
| Investment earnings | No |
Converting 401(k) money
If most of your IRA came from a 401(k), expect little MA basis. Most of your conversion will be taxable at 5%. Our guide on 401(k) to Roth IRA covers the federal side.
Can a Roth conversion trigger the Massachusetts millionaire tax?
Yes. The 4% surtax applies to MA taxable income above a line that rises with inflation. For 2026 that line is $1,107,750, according to the state's estimated tax form (Form 1-ES). It was $1,083,150 for 2025.
Your conversion is taxable income, so a big one can push you over for that one year. Only the dollars above the line pay the extra 4%.
If you are married, you can't double it. Since 2024, if you file a joint federal return, you generally must file jointly in the state too. A joint return gets one threshold. Converting over two or more years can keep you under the line each year.
| Taxable conversion | Total MA taxable income | 5% tax on the conversion | 4% surtax |
|---|---|---|---|
| $250,000 | $400,000 | $12,500 | $0 |
| $750,000 | $900,000 | $37,500 | $0 |
| $1,000,000 | $1,150,000 | $50,000 | $1,690 |
| $1,500,000 | $1,650,000 | $75,000 | $21,690 |
Does Massachusetts tax Social Security, and what senior breaks are there?
The state does not tax your Social Security. It isn't part of your MA gross income, even if part of it is federally taxable.
There is no general retirement income break for IRAs. At 65 or older, you each get an extra $700 exemption. That is on top of the personal exemption of $8,800 for a married couple filing jointly ($4,400 single).
Government pensions have their own state rules, apart from IRAs. If you have one, check it on its own before you plan around it.
What if I move out of Massachusetts, and do I owe estimated tax?
Timing matters if you plan to move. The state's instructions say nonresidents are not taxed on Roth IRA conversions. If you live there for part of the year, you use the worksheet for conversions you got while you lived there.
So if you are moving to a state such as Florida, a conversion after you change your legal home is generally outside MA tax. Moving to New York is different, since New York has its own rules. A Massachusetts-licensed preparer can confirm your residency date.
If you convert without withholding, you generally must make estimated payments when you expect to owe more than $400 of state tax. Form 1-ES says to include the surtax if your conversion could push you over the line.
Example: a Worcester couple converting $50,000 with some MA basis
Pat, 63, and Chris, 64, file jointly and haven't started Social Security. In 2026 they have $90,000 of income from Chris's company pension and interest. Pat converts $50,000 from her traditional IRA.
Over the years, Pat put $20,000 into that IRA while living in Massachusetts. She deducted it on her federal returns but never got a Massachusetts deduction. She has never taken money out.
Federally, the full $50,000 is taxable. Their taxable income goes from $57,800 to $107,800, adding about $6,700 of federal tax. On the state return, the first $20,000 is a return of basis. Only $30,000 is taxable, adding $1,500 at 5%. Without her basis, the Massachusetts tax would have been $2,500.
What this means for you: dig out your old IRA contribution records before you convert, because they can lower your Massachusetts bill.
| Without conversion | With $50,000 conversion | |
|---|---|---|
| Federal AGI | $90,000 | $140,000 |
| Federal tax | about $6,440 | about $13,140 |
| Taxable part of conversion in MA | $30,000 | |
| MA tax (5% after $8,800 exemption) | about $4,060 | about $5,560 |
| Total added by conversion | about $8,200 |
Hypothetical example. Assumes married filing jointly, both under 65, no Social Security, a private-sector pension, the 2026 federal standard deduction ($32,200) and brackets (IRS Rev. Proc. 2025-32), $20,000 of Massachusetts basis with no earlier distributions, and only the Massachusetts personal exemption. It ignores other Massachusetts deductions and credits and Medicare IRMAA. Your numbers will differ.
Common questions
Does Massachusetts tax Roth conversions?
Yes, at 5%, but only the amount above the IRA contributions Massachusetts already taxed. You figure it on the Schedule X, Line 2 Worksheet.
Why are my IRA contributions tax-free in Massachusetts?
Massachusetts doesn't let you deduct IRA contributions. So the money you put in while you lived there was already taxed, and it comes out first with no more Massachusetts tax.
What is the Massachusetts surtax threshold for 2026?
$1,107,750 of Massachusetts taxable income, per the 2026 Form 1-ES. Your income above that is taxed an extra 4%.
Do married couples get a double surtax threshold?
No. A joint return has one threshold. If you file jointly federally, you generally must file jointly in Massachusetts too.
Does Massachusetts tax Social Security?
No. Your Social Security is not part of Massachusetts gross income.
Is a Roth conversion taxed if I've moved out of Massachusetts?
The Form 1-NR/PY instructions say nonresidents are not taxed on Roth IRA conversions. If you live there part of the year, you are taxed on conversions you got while a resident.
Sources
Facts on this page were last checked on November 9, 2026.
- Massachusetts DOR, 2025 Form 1 Instructions · Schedule X, Line 2 and worksheet: IRA and Roth conversion distributions, previously taxed contributions, 401(k) rollovers, separate worksheets for spouses. Read Nov 9, 2026.
- Massachusetts DOR, 2026 Form 1-ES Estimated Income Tax · 2026 surtax threshold of $1,107,750, $400 estimated tax rule, surtax in estimates. Read Nov 9, 2026.
- Massachusetts DOR, Massachusetts 4% Surtax on Taxable Income · Surtax rate, prior-year thresholds, joint filing requirement since 2024. Read Nov 9, 2026.
- Massachusetts DOR, 2025 Form 1-NR/PY Instructions · Nonresident and part-year treatment of Roth IRA conversion distributions. Read Nov 9, 2026.
- Massachusetts DOR, Tax Information for Seniors and Retirees · Social Security not taxed, $700 age 65 exemption. Read Nov 9, 2026.
- Massachusetts DOR, Personal Income Tax Exemptions · Personal exemption amounts ($4,400 single, $8,800 joint). Read Nov 9, 2026.
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments) · 2026 federal brackets and standard deduction. Read Nov 9, 2026.
Who wrote this
This guide was written and fact-checked by the Secure Retirement Planner editorial team using IRS, CMS and Social Security sources listed above. We update guides when the law or yearly limits change. How we research.