Survivor Benefit Plan Income Tax Exemption
SBP payments are fully exempt from Massachusetts state income tax.
State BenefitMassachusettsTax Benefits
Verified September 30, 2026 against mass.gov
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
- September 30, 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
- Spouses
- Survivors
- 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.
Verified information & sources
- Last verified
- September 30, 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.
How VetUnlock verifies benefitsFrequently asked questions about Survivor Benefit Plan Income Tax Exemption
Who qualifies for Survivor Benefit Plan Income Tax Exemption?
Survivor Benefit Plan Income Tax Exemption is for Spouses, Survivors; Through veteran sponsor (any rating); massachusetts residency. See the eligibility details on this page and confirm with the official source before applying.
How do I apply for Survivor Benefit Plan Income Tax Exemption?
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Survivor Benefit Plan Income Tax Exemption?
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.
Other Massachusetts Tax Benefits
- Military Retirement Pay Income Tax ExemptionFull retirement pay exemptionMilitary retirement pay is fully exempt from Massachusetts state income tax.
- VA Disability Pension Income Tax ExemptionVA disability pensions are fully exempt from Massachusetts state income tax.
- Property Tax Exemption -- Clause 22 (10%+ Disability)$400 base ($800 if doubled under HERO Act 22J)Approximately $400 property tax exemption for veterans with 10%+ service-connected disability.
- Property Tax Exemption -- Clause 22A (Loss of One Limb/Eye)$750 base ($1,500 if doubled under HERO Act 22J)For veterans who lost or lost use of one hand, foot, or eye in service. Approximately $750 property tax exemption.