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HD 5667

An Act relative to equal state tax treatment for foreign Social Security-equivalent benefits

194th Legislature (2025-2026) Introduced by Jo Comerford and 1 co-sponsor

Bill extends Massachusetts Social Security tax exemptions to foreign government retirement benefits, equalizing tax treatment for immigrant retirees and potentially reducing state revenue.

Reported, referred to the committee on Joint Rules, reported, rules suspended and referred to the committee on Revenue
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WeVote Research Nonpartisan
Bill Summary · HD 5667

Legislative bill overview

HD 5667 would amend Massachusetts tax law to provide equal tax treatment for foreign Social Security-equivalent benefits (such as pensions from other countries' public retirement systems) as the state currently provides for U.S. Social Security benefits. Currently, Massachusetts residents who receive retirement benefits from foreign governments may face different tax treatment than those receiving U.S. Social Security, creating a disparity based on where someone earned their retirement benefits.

Why is this important

This affects immigrants and expatriates who contributed to foreign public pension systems and now reside in Massachusetts. The tax disparity can result in higher effective tax rates for these individuals compared to U.S. Social Security recipients, potentially impacting retirement security and fairness in the tax code. Given Massachusetts' diverse population, this change could affect thousands of residents and reflect evolving demographics in the state.

Potential points of contention

  • Revenue impact: Exempting or reducing taxes on foreign pension benefits could reduce state tax revenue, with unclear fiscal estimates without seeing the bill's specific language
  • Definitional complexity: Determining which foreign benefits qualify as "Social Security-equivalent" requires defining criteria—some may argue the standard is too broad or too narrow
  • Reciprocity questions: Critics may question whether other countries provide similar tax treatment to Massachusetts residents receiving U.S. Social Security, raising fairness concerns about one-way tax policy

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

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