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Bill

HD 2950

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

Exempts qualifying senior citizens' pension income from Massachusetts state income tax to reduce tax burden on retirees.

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WeVote Research Nonpartisan
Bill Summary · HD 2950

Legislative bill overview

HD 2950 would create a tax exemption for pension income received by qualifying senior citizens in Massachusetts. The bill targets certain elderly residents by exempting a portion or all of their pension earnings from state income tax. This represents a targeted tax relief measure aimed at the retirement-age population.

Why is this important

Pension income taxation directly affects retirees' purchasing power and financial security during fixed-income years. Massachusetts currently taxes pension income like regular wages, which can significantly burden seniors living on retirement savings. This proposal addresses cost-of-living concerns for elderly residents while potentially affecting state revenue.

Potential points of contention

  • Revenue impact: Tax exemptions reduce state revenue needed for schools, infrastructure, and services, requiring either budget cuts or offsetting tax increases elsewhere
  • Definition of "certain": The bill's language leaves unclear which seniors qualify—income thresholds, age requirements, and pension types matter significantly for who benefits
  • Equity concerns: Exempting only pension income may advantage retirees with pensions over those relying on Social Security, savings withdrawals, or investment income, potentially creating fairness questions
  • Fiscal sustainability: Permanent tax exemptions grow more costly over time as the senior population increases and inflation rises

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

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