Life insurance in Massachusetts is generally not subject to state income tax. The death benefit paid out to the beneficiary is typically not taxable as income. However, there are some exceptions to this rule. For example, if the life insurance policy is considered a modified endowment contract (MEC), any withdrawals or loans from the policy may be subject to income tax. Additionally, if the policyholder sells their life insurance policy, they may be subject to capital gains tax on any profit made from the sale. It's important to consult with a tax professional or financial advisor for specific guidance on your individual situation.