Updated October 4, 2026. Quick answer: No. M.G.L. c. 62, section 2 excludes from gross income “any income received from the United States government as retirement pay” for a retired member of the Uniformed Services, and does so “regardless of whether the retiree contributed to the retirement system”.
How Massachusetts treats military retired pay
| Item | What the documents say |
|---|---|
| Treatment | Full exclusion from Massachusetts gross income of retirement pay received from the United States government by a retired member of the Uniformed Services |
| Cap or age | None printed in that clause |
| Where it is written | M.G.L. c. 62, section 2, clause (E); only the statute text was read, so the return line is not stated here |
| Rate on other income | Section 4(b) prints 5.3 per cent for Part B taxable income, and subsection (d) adds 4 per cent on taxable income above $1,000,000 |
A $30,000 example
A retired member with $30,000 of retirement pay received from the federal government excludes all $30,000, so none of that pay is left to tax.
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What changes in 2026
No 2026 change is printed in the documents read.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Publication 3, Armed Forces’ Tax Guide.
Related: whether Massachusetts taxes pensions, how Massachusetts taxes retirement income, military retirement pay by state, and the military retirement calculator.
Sources
- M.G.L. c. 62, section 2 (Massachusetts gross income): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2
- M.G.L. c. 62, section 4 (Rates of taxation): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section4
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.