Thinking About Retiring in Massachusetts? Here's What Taxes May Cost You

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.