Survivor Benefit Plan Income Tax Exemption
SBP payments are fully exempt from Massachusetts state income tax.
At a glance
- Benefit type
- Tax Benefits — Massachusetts
- Who it's for
- Spouses, Survivors
- VA rating needed
- No rating requirement
- Where it applies
- Massachusetts
- Last verified
- June 21, 2026
What is Survivor Benefit Plan Income Tax Exemption?
Survivor Benefit Plan Income Tax Exemption is a Massachusetts tax benefits benefit for spouses, survivors. SBP payments are fully exempt from Massachusetts state income tax.
Who qualifies
- Through veteran sponsor (any rating)
- Massachusetts residency
Who is eligible
Eligibility
Surviving spouses and other eligible survivors receiving Survivor Benefit Plan (SBP) annuity payments, including the Reserve Component Survivor Benefit Plan (RCSBP) and the Retired Serviceman's Family Protection Plan (RSFPP).
What Survivor Benefit Plan Income Tax Exemption covers
Coverage
These survivor annuity payments are fully exempt from Massachusetts personal income tax. Massachusetts excludes income from contributory annuities, pensions, and retirement funds of the U.S. government, as well as all U.S. military retirement pay; survivor pensions paid to a surviving spouse under SBP, RCSBP, and RSFPP are likewise not taxed.
Important to know
See the Massachusetts Department of Revenue guidance, "Tax Treatment of Government Pensions in Massachusetts."
How to apply for Survivor Benefit Plan Income Tax Exemption
How to apply
No separate application is required — exclude the qualifying SBP income on your Massachusetts personal income tax return (the Schedule Y government-pension exclusion).
Verified information & sources
Last verified: June 21, 2026
Official source: mass.gov
Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.
Frequently asked questions about Survivor Benefit Plan Income Tax Exemption
Who qualifies for Survivor Benefit Plan Income Tax Exemption?▾
How do I apply for Survivor Benefit Plan Income Tax Exemption?▾
Where can I verify Survivor Benefit Plan Income Tax Exemption?▾
Other Massachusetts Tax Benefits
Military Retirement Pay Income Tax Exemption
Military retirement pay is fully exempt from Massachusetts state income tax.
Full retirement pay exemption
VA Disability Pension Income Tax Exemption
VA disability pensions are fully exempt from Massachusetts state income tax.
Property Tax Exemption -- Clause 22 (10%+ Disability)
Approximately $400 property tax exemption for veterans with 10%+ service-connected disability.
$400 base ($800 if doubled under HERO Act 22J)
Property Tax Exemption -- Clause 22A (Loss of One Limb/Eye)
For veterans who lost or lost use of one hand, foot, or eye in service. Approximately $750 property tax exemption.
$750 base ($1,500 if doubled under HERO Act 22J)
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