Is SSDI Taxable in Massachusetts? What Disability Recipients Need to Know
Last updated: November 13, 2026
Quick answer: Is SSDI taxable in Massachusetts? No. Massachusetts does not tax SSDI, because Social Security benefits are not included in Massachusetts income (mass.gov). At the federal level, SSDI may be partly taxable, depending on your total income. IRS Publication 915 and a tax preparer can tell you whether you owe.
En español: Massachusetts no cobra impuestos estatales sobre el SSDI (disability del Seguro Social). A nivel federal, el SSDI puede ser parcialmente tributable según sus otros ingresos. Consulte la Publicación 915 del IRS o a un preparador de impuestos. El SSI no es ingreso tributable. Si tiene preguntas sobre su caso de disability, llámenos en español.
Tax season is stressful. It is even more stressful when you live on a fixed disability check. Many people in Lawrence, Chelsea, Lynn, Worcester, Springfield, Holyoke and Boston ask us the same thing: "Will I have to pay taxes on my disability?"
The answer has two parts: the Massachusetts part and the federal part. Here is what you need to know, in plain English.
Is SSDI taxable in Massachusetts? The state answer
For Massachusetts state income tax, the answer is simple. The official Massachusetts tax guidance on mass.gov says it directly:
"Social Security benefits are not included in Massachusetts income." (mass.gov, differences between MA and federal tax law)
SSDI (Social Security Disability Insurance) is a Social Security benefit. So Massachusetts does not tax your SSDI. This is true whether you get a small check or a large one.
That rule covers your Social Security benefits only. If you also have other income, like wages or a pension, those may be treated differently. Ask a tax preparer about your full picture.
Federal taxes on SSDI: it depends on your total income
Federal taxes work differently from Massachusetts taxes. For federal purposes, Social Security benefits may be included in your federal income, depending on income thresholds.
In plain words:
- Your total income matters. Whether any of your SSDI counts depends on all the income on your federal return, not only your SSDI.
- If you or your spouse have other income, like wages, a pension, interest or a spouse's paycheck, part of your SSDI may become taxable.
- The exact rules and income limits are explained in IRS Publication 915. The IRS also has a page on regular disability benefits.
We do not list the federal income limits here on purpose. Your answer depends on your filing status and your household's other income. A tax preparer can run your numbers.
Questions about your case? Talk to us in Spanish or English. Call 617-520-4548 · Text or WhatsApp: 617-308-7314. The consultation is free.
Is SSI taxable? SSI vs SSDI for taxes
SSI (Supplemental Security Income) and SSDI are both run by Social Security, but they are different programs. SSDI is based on your work credits. SSI is based on need: low income and few resources (Social Security, SSI eligibility).
- SSI is not taxable income. It is a needs-based benefit.
- SSDI is not taxed by Massachusetts, but it may be partly taxable federally.
Not sure which one you get? Look at your award letter, or read SSI vs SSDI explained (in Spanish).
Back pay, workers' comp and other things that can affect your taxes
SSDI back pay
SSDI has a five-month waiting period. It can also pay up to 12 months before your application date, if you were already disabled (Social Security). Because cases take time, some people receive a large back payment at once.
A big payment in one year can raise questions at tax time. Massachusetts still does not tax it. For the federal return, ask a tax preparer how to report it.
Lawyer fees come out of back pay
Under a fee agreement, a disability lawyer's fee cannot be more than 25% of your past-due benefits or $9,200, whichever is less. Social Security must approve the fee (Social Security, fee agreements). Tell your tax preparer about any fee taken from your back pay. Read more in how much a disability lawyer costs (in Spanish).
Workers' comp and SSDI
You can receive both workers' comp and SSDI. But Social Security reduces SSDI so the two together do not exceed 80% of your "average current earnings" (Social Security, POMS DI 52101.001). If this happens to you, bring paperwork for both benefits to your tax preparer. See workers' comp and disability in Massachusetts.
A simple tax-season checklist for SSDI recipients
- Gather your letters. Keep every benefit letter Social Security sends you.
- List all other income. Include wages, pensions, interest and your spouse's income.
- Note any back pay. Write down the amount and the months it covers.
- Bring workers' comp papers, if you have them.
- See a tax preparer. Ask about IRS Publication 915 and whether you need to file.
- Remember: Massachusetts does not include Social Security benefits in state income.
Frequently asked questions
Do I pay Massachusetts state tax on Social Security disability?
No. Social Security benefits, including SSDI, are not included in Massachusetts income.
Is SSDI taxable federally?
It may be partly taxable. It depends on your total income and your household's other income. Check IRS Publication 915 or ask a tax preparer.
Is SSI taxable?
No. SSI is a needs-based benefit and is not taxable income.
Does my SSDI become taxable when it turns into retirement?
At full retirement age, SSDI converts to retirement benefits in the same amount. It is still a Social Security benefit, so Massachusetts still does not include it in state income. The federal answer still depends on your total income.
Can a disability lawyer prepare my taxes?
This article is not tax advice. For your tax return, use a tax preparer. A disability lawyer can help with your Social Security claim or appeal.
Talk to a Spanish-speaking disability lawyer
If you are applying for SSDI or SSI, or you were denied, we can help in Spanish or English. We will explain your benefits and your next steps clearly.
Call 617-520-4548 · Text or WhatsApp: 617-308-7314
Free consultation: cheabogado.com/consulta-gratis
This article is general information, not legal or tax advice. Every case is different. Figures come from official sources (ssa.gov and mass.gov) and may change.