Massachusetts does not tax Social Security benefits, and some pensions may be exempt from state income tax. However, ordinary income, including IRA distributions, is generally taxed at 5%, with an additional 4% surtax on income above a $1 million threshold. The state has a $2 million estate-tax exemption, and property taxes can be high due to home values. Retirees benefit from quality healthcare, cultural attractions, and public transportation. Careful tax planning and record-keeping are essential.