An Act establishing a tax exemption for pension income for certain senior citizens of the Commonwealth

This bill proposes to exempt pension income from state taxation for Massachusetts residents who are over 65 years old and earn at or below the local area median income. Under the new rules, eligible seniors would not pay state tax on the first $20,000 of their taxable pension income. Additionally, those who have paid state taxes on their pension income for more than 20 years would receive a full exemption on all of their taxable pension income. The legislation directly affects qualifying senior citizens by reducing their state tax liability based on their income level and length of tax contribution.