Bill > H3081

This bill establishes a tax exemption for certain senior citizens' pension income in Massachusetts. Specifically, the bill allows taxpayers who are residents of Massachusetts, over 65 years old, and at or below the area median income to receive a tax exemption on their pension income. The exemption has two key provisions: first, taxpayers will be exempt from tax on the first $20 of taxable pension income, and second, taxpayers who have paid taxes on their pension income for over 20 years will be completely exempt from tax on their pension income. "Taxable pension income" is defined as pension income that is taxable under section 2 of the tax code. The bill aims to provide financial relief to senior citizens by reducing their tax burden on retirement income, with eligibility criteria designed to target those most likely to be on fixed incomes. This proposed legislation modifies the existing tax law in Chapter 62 of the Massachusetts General Laws by adding a new clause to provide these specific pension income tax exemptions.

Budget and Finance

https://malegislature.gov/Bills/194/H3081