The federal senior deduction
The deduction is $6,000 for each eligible person, so $12,000 when both spouses qualify. It comes on top of the additional standard deduction older filers already had, and it is available whether you itemize or not. It runs for tax years 2025 through 2028.
To qualify you must be 65 by the end of the tax year (for 2026, born before 2 January 1962), have a valid Social Security number, and file jointly if married. The deduction phases out once modified adjusted gross income exceeds $75,000, or $150,000 on a joint return.
It is not an exclusion for Social Security
Some coverage described the deduction as ending tax on Social Security. That is not what it does. Social Security benefits are still included in federal income under the same rules as before; the senior deduction is simply a deduction against income of any kind, and it shrinks as income rises.
Massachusetts is where Social Security really is excluded: DOR states that Social Security benefits are not included in Massachusetts income. That was true before the 2025 law and is unchanged by it.
| Federal | Massachusetts | |
|---|---|---|
| Senior deduction | $6,000 per person, 2025 to 2028, phased out above $75,000 MAGI ($150,000 joint) | Not allowed |
| Extra standard deduction for age 65 | Yes; for 2026, $2,050 unmarried or $1,650 per married person | No standard deduction; instead a $700 exemption for each person 65 or older |
| Social Security benefits | May be partly taxable depending on income | Not taxed |
| Government contributory pensions | Generally taxable | Excluded if paid by Massachusetts, its cities and towns, contributory plans of other states or the federal government |
| Property tax or rent relief | None | Senior circuit breaker credit, up to $2,820 for 2025 |
The Massachusetts stack for older filers
- Social Security benefits are excluded from Massachusetts income
- A $700 exemption for each taxpayer or spouse who is 65 by 31 December
- Certain government pensions are excluded, including those paid by the Commonwealth and its cities and towns
- The senior circuit breaker credit for homeowners and renters, up to $2,820 for tax year 2025
- An extra $2,200 exemption for blindness, where it applies
Why the two returns now diverge
Massachusetts said in TIR 26-4 that it does not follow the temporary federal senior deduction. For a retired couple, that means the federal deduction may lower their federal tax, while their Form 1 depends on the Massachusetts rules above.
It also means a traditional IRA distribution can be taxed differently on the two returns. Massachusetts never allowed a deduction for traditional IRA contributions, so contributions that were taxed in Massachusetts when made are not taxed again when withdrawn.
Illustrative example. A married couple in Stoughton, both 67, have $40,000 of Social Security and a $50,000 private pension for 2025. Federally, part of the Social Security may be taxable, and the $12,000 senior deduction applies in full because their MAGI is below $150,000. In Massachusetts, the Social Security is excluded, the pension is taxable, and they claim the $8,800 joint exemption plus $1,400 in age-65 exemptions.
Where we come in
Retirees' returns often have more moving parts than they look: pensions, IRA withdrawals, Social Security and a property tax bill. We prepare both returns together and check the circuit breaker credit for each year it could apply. Before we start, we give you a scope and a price in writing.
Figures on this page were checked against the IRS and Massachusetts sources listed alongside on 28 Sep 2026. They change — confirm the current amount before relying on one.
General information for owner-led businesses, not advice for your specific situation. Tax and accounting rules change, and how they apply depends on facts particular to your business. Talk to us — or to another qualified professional — before acting on anything here.
