Moving from Massachusetts to St. Augustine

Massachusetts taxes most retirement income at 5% — and added a 4% surtax on income above $1 million in 2023. Florida has no income tax. Here is the full comparison.

Massachusetts has a flat income tax rate of 5% that applies to most income including pension distributions and IRA withdrawals. Social Security is exempt. The state added a 4% surtax on income above $1 million beginning in 2023 — the "Fair Share Amendment" — which affects high-income retirees taking large IRA distributions. Property taxes in Massachusetts are assessed at full market value with an effective rate around 1.1%–1.5% depending on the town, but the cost of living in most Metro Boston and suburban communities makes St. Augustine a notable value comparison.

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Massachusetts Income Tax on Retirement Income

Massachusetts Income Tax (2025)Flat rate: 5.0% on most income including pension distributions and IRA withdrawals. Social Security: fully exempt. Pension income from MA government plans (state, local, teacher): fully exempt. Federal pension income: exempt. Private pension and IRA distributions: taxable at 5%. The 4% surtax applies only to income above $1 million (combined federal gross income threshold) — relevant for retirees taking large lump-sum distributions.

Taxable Retirement Income (IRA/pension above exemptions)	MA Tax (5.0%)	Florida Tax	Annual Savings
$40,000	$2,000	$0	$2,000
$60,000	$3,000	$0	$3,000
$80,000	$4,000	$0	$4,000
$100,000	$5,000	$0	$5,000

MA Government Pension Exemption — Who It AffectsIf you retired from a Massachusetts state, municipal, or public school position, your pension is exempt from Massachusetts income tax. Moving to Florida saves you nothing on that specific income source — it was already exempt. The savings for MA public pension retirees come primarily from property tax. For private sector retirees and those with IRA distributions, the 5% MA rate represents a real and meaningful cost that Florida eliminates.

Property Tax: Massachusetts vs St. Johns County

Massachusetts property tax effective rates average 1.1%–1.5% statewide, with towns like Wellesley, Lexington, and Newton running $8,000–$15,000+ on homes in the $700,000–$1.2M range. Smaller towns and Western Massachusetts run lower. However, Massachusetts has a seniors-specific circuit breaker credit that reduces property tax for eligible homeowners 65+ with income under approximately $64,000 (single) — verify current limit at mass.gov/dor.

Home Value	MA Property Tax (est. 1.3% effective)	St. Johns County Year-1 Tax	Annual Savings
$425,000	$5,525	$5,051	$474
$500,000	$6,500	$6,062	$438
$600,000	$7,800	$7,409	$391

At comparable home values, Massachusetts property taxes are only modestly higher than St. Johns County — the gap is smaller than for NJ, NY, or Illinois buyers. The income tax savings are where Massachusetts movers gain the most ground financially.

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The Home Value Arbitrage — The Real MA Financial Story

What the tax comparison alone does not capture: the home value differential. A 2,000 sq ft home in a suburban Massachusetts community costs $600,000–$900,000 in most Metro Boston or South Shore towns. A comparable 2,000 sq ft home at Reverie at Silverleaf or WaterSong in St. Augustine costs $400,000–$550,000. Massachusetts buyers who sell and move to St. Augustine often unlock $200,000–$400,000 in home equity that they can deploy for retirement income, a retirement account, or simply to reduce mortgage debt. That equity release — independent of any ongoing tax comparison — is frequently the most significant financial benefit of the MA-to-FL move.

The 10-Year Picture

Savings Category	Annual	10-Year Total
Income tax (on $60K private pension/IRA)	~$3,000	~$30,000
Property tax (on $450K home vs MA equivalent)	~$400–$3,000 depending on MA town	~$4,000–$30,000
Combined estimate (private pension retiree, suburban MA)	~$3,400–$6,000	~$34,000–$60,000

Communities That Fit Massachusetts Buyers

Massachusetts buyers expect quality construction, strong community management, cultural access, and proximity to good healthcare. The historic character of St. Augustine — reminiscent of New England colonial history but with warm weather — resonates strongly. Many MA buyers specifically cite the walkability and cultural depth of St. Augustine proper as what distinguishes this market from generic Florida retirement destinations.

Nonstop flights: Jacksonville International to Boston Logan (BOS) available seasonally and with connections; travel time is significantly shorter than other Florida 55+ markets further south.

Reverie at Silverleaf — quality new construction, no CDD, transparent costs. WaterSong at RiverTown — waterfront character that translates for buyers leaving coastal MA towns.

Massachusetts buyers often see the largest benefit not in the tax tables but in the home equity they unlock by selling in a high-cost MA market and buying in St. Johns County. An agent can help you run the full financial picture.

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MA income tax rate 5.0% flat (2025). 4% surtax on income above $1M per Fair Share Amendment (2023). MA government pension exemption per MGL Ch. 62 §2(a)(2)(E). Senior circuit breaker credit income threshold approximate — verify at mass.gov/dor. Property tax rates approximate — vary significantly by town. St. Johns County millage 13.47 mills. Consult a CPA for your specific situation. This page is for research purposes only.