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H 3081

An Act establishing a tax exemption for pension income for certain senior citizens of the Commonwealth

194th Legislature (2025-2026) Introduced by Carol Doherty and 1 co-sponsor

Bill H 3081 exempts Massachusetts seniors from state taxes on the first $20,000 of pension income, enhancing financial relief for those with limited income.

Accompanied a study order, see H5318
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WeVote Research Nonpartisan
Bill Summary · H 3081

Summary of Bill H 3081: An Act Establishing a Tax Exemption for Pension Income for Certain Senior Citizens

Purpose and Intent

Bill H 3081 aims to provide tax relief to senior citizens in the Commonwealth of Massachusetts by establishing exemptions on pension income. The bill seeks to alleviate the financial burden on elderly residents, particularly those with limited income, thereby supporting their economic well-being.

Key Provisions

The bill proposes the following significant changes to the tax code:

  1. Tax Exemption on Pension Income:

    • First $20,000 Exemption: Taxpayers will be exempt from state income tax on the first $20,000 of taxable pension income.
    • Full Exemption for Long-Term Taxpayers: Taxpayers who have paid taxes on their pension income for over 20 years will be exempt from state income tax on 100% of their taxable pension income.

  2. Eligibility Criteria:

    • To qualify for these exemptions, taxpayers must meet the following criteria:
      • Be a resident of Massachusetts.
      • Be over the age of 65.
      • Have an income at or below the area median income as defined by the Department of Housing and Community Development.

Affected Parties

This bill primarily affects senior citizens in Massachusetts who receive pension income. It is designed to benefit those who may be struggling financially, particularly retirees living on fixed incomes. By providing tax relief, the bill aims to enhance the quality of life for these individuals.

Procedural Aspects

  • Introduced: February 27, 2025
  • Hearing Scheduled: A public hearing is set for November 18, 2025, from 10:00 AM to 1:00 PM in Room A-1, where stakeholders can provide input on the bill.
  • Legislative Actions:
    • The bill was referred to the committee on Revenue on the same day it was introduced.
    • The Senate has concurred with the bill's progression.

Related Legislation

  • This bill replaces House Docket No. 2950, which was filed on January 16, 2025, and is part of the legislative efforts to address tax burdens on senior citizens.

Conclusion

Bill H 3081 represents a significant step towards providing financial relief for senior citizens in Massachusetts by exempting a portion of their pension income from state taxes. If enacted, it could positively impact the lives of many elderly residents, allowing them to retain more of their income in retirement.

Compiled from official sources — confirm details with the bill’s official record.

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