Mass. Gen. Laws » Part I Title IX Chapter 62
Massachusetts General Laws

Mass. Gen. Laws ch. 62, § 5 (2026)

Exempt income of individuals; exemption of stock bonus, pension or profit-sharing trust

✓ current as of July 2026
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Section 5. (a) Notwithstanding the provisions of section four, Part A taxable income, Part B taxable income and Part C taxable income, shall be exempt from all taxes imposed under this chapter if the Massachusetts adjusted gross income for the taxable year does not exceed the following threshold:

(1) in the case of a single person, eight thousand dollars, or

(2) in the case of a husband and wife filing a joint return or a person filing as a head of household, seven thousand six hundred dollars plus the deductions allowed under the following provisions of paragraph (b) of subsection (B) of section three of this chapter.

(A) an amount equal to that allowed for personal exemptions under clause (A) of subparagraph (1a) of said paragraph or clause (A) of subparagraph (2) of said paragraph, and

(B) an amount equal to the total exemption allowed under subparagraph (3) of said paragraph.

No tax imposed under this chapter shall exceed ten percent of the Massachusetts adjusted gross income less the aforementioned threshold; provided, however, that the provisions of this sentence shall not apply in any case where Massachusetts adjusted gross income exceeds one hundred and seventy-five hundredths of the aforementioned threshold. No exemptions shall be allowed under this section to a married individual filing a separate return, except for those individuals qualifying for head of household under section two (b) of the Code. In the case of a short taxable year, occurring for any reason other than residence during one portion of the normal taxable year and nonresidence during another portion, there shall be substituted for the above threshold amounts, those amounts which bear the same relation to such sums as the number of days in the taxable year bears to three hundred and sixty-five. With respect to a person who is a nonresident for all or part of the taxable year, Massachusetts adjusted gross income shall be determined as if he were a resident of the commonwealth throughout the entire taxable year.

(b) Notwithstanding any other provision of this chapter, no tax shall be imposed under this chapter upon any stock bonus, pension or profit-sharing trust qualifying under section four hundred and one of the Code or any individual retirement account qualifying under section four hundred and eight of the Code.

Notes of Decisions
Cited in 39 cases, 1922–1983 · leading case: Allen v. Comm'r of Corporations & Taxation, 70 A.L.R. 1299 (Mass. 1930).
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Allen v. Comm'r of Corporations & Taxation, 70 A.L.R. 1299 (Mass. 1930). · cites it 4× “The governing sections of the income tax law are G. L. c. 62, § 5, as finally amended by St.”
Boston Safe Deposit & Trust Co. v. Comm'r of Corporations & Taxation, 174 N.E. 109 (Mass. 1930). · cites it 3× “” G. L. c. 62, § 5 (c) [as finally amended by St.”
Kargman v. Comm'r of Revenue, 452 N.E.2d 492 (Mass. 1983). · cites it 2× “G. L. c. 62, § 5 (a). With respect to a married couple filing a joint return, the exemption is available if their “total income” for the taxable year does not exceed $5,000 (or to the extent that the tax would reduce their income below that amount).”
Trs. of Amherst Coll. v. Comm'r of Corporations & Taxation, 238 N.E.2d 351 (Mass. 1968). · cites it 4× “The issue is whether, under G. L. c. 62, § 5, as amended through St. 1966, c.”
Green v. Comm'r of Corporations & Taxation., 305 N.E.2d 92 (Mass. 1973). · cites it 2× “62, § 25, every individual “who while an inhabitant of the commonwealth” received taxable income was subject to the tax. By G. L. c. 62, § 22, as appearing in St.”
Tirrell v. Comm'r of Corporations & Taxation, 192 N.E. 77 (Mass. 1934). · cites it 2× “The taxpayer contends (a) that the income received by him was taxable as an annuity under G. L. c. 62, § 5 (a), at the rate of one and one half per cent per annum, and the additional tax should be abated, but (b) that, if the income was not so taxable, there is no evidence that…”
Dexter v. State Tax Comm'n, 215 N.E.2d 94 (Mass. 1966). · cites it 2× “The trustees contend in effect that under G. L. c. 62, §§ 5, 10, and 11, a Massachusetts donor of trust property, held by Massachusetts trustees subject to an unconditionally revocable trust, should be treated as the true owner of the trust income in accordance with “the…”
Parker v. Comm'r of Corp. & Taxation, 155 N.E. 177 (Mass. 1927). · cites it 4× “” G. L. c. 62, § 5, reads: “Income of the following classes received by any inhabitant of the Commonwealth during the preceding calendar year shall be taxed as follows: (a) Income from an annuity shall be taxed at the rate of one and one half per cent per annum .”
Harrison v. Comm'r of Corporations & Taxation, 71 A.L.R. 677 (Mass. 1930). “G. L. c. 62, § 5 (c) as amended by St. 1922, c.”
State Tax Comm'n v. John Hancock Mut. Life Ins., 170 N.E.2d 711 (Mass. 1960). “There it was held that payments to retired employees under a retirement plan were not taxable as income from annuities under G. L. c. 62, § 5 (a), but were retirement allowances taxable as business income under § 5 (b).”
Parker v. Comm'r of Corporations & Taxation, 152 N.E. 34 (Mass. 1926). · cites it 3× “62, § 1 (a), or was income derived from trade or business under G. L. c. 62, § 5 (b). ■ This firm engages chiefly in the importation and sale of foreign merchandise, in large measure the products of South America, and also in the exportation and sale of products of the United…”
Brown v. Comm'r of Corporations & Taxation, 242 Mass. 242 (Mass. 1922). “” The relevant provisions of the statute are G. L. c. 62, § 5, “Income of the following classes received .”
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