State estate tax
Massachusetts estate tax in 2026
Checked against state sources 2026-10-21 · Gregory Garone, CEPA®
Short answer: Yes. Massachusetts taxes estates above $2 million. A $99,600 credit means estates at or under $2 million owe nothing and larger estates pay tax only on roughly the amount above it, at rates up to 16%.
Massachusetts at a glance
| Tax type | Estate tax |
|---|---|
| Estate tax exemption, 2026 deaths | $2,000,000 |
| Top rate | 16% |
| Portability to a surviving spouse | No |
How the Massachusetts estate tax works
- The 2023 law that set the $2 million threshold also replaced the old cliff with a flat $99,600 credit. The threshold is not indexed for inflation.
- The tax is computed using the federal state death tax credit table as it stood on December 31, 2000, minus the $99,600 credit.
- A return is required when the gross estate plus adjusted taxable gifts exceeds $2 million, even if no tax ends up due.
- Nonresidents who own Massachusetts real estate or tangible property there can owe Massachusetts estate tax.
Planning points
- With a $2 million threshold and no portability, many Massachusetts homeowners with retirement accounts are taxable. A credit-shelter trust at the first death is the standard fix for couples.
- Massachusetts has no gift tax, so lifetime gifts can reduce the estate, although adjusted taxable gifts are counted in the filing test.
Common questions
Does Massachusetts have an estate tax in 2026?
Yes. Massachusetts taxes estates above $2 million. A $99,600 credit means estates at or under $2 million owe nothing and larger estates pay tax only on roughly the amount above it, at rates up to 16%.
Is there still a Massachusetts estate tax cliff?
No. Since 2023 the $99,600 credit applies to every estate, so tax is charged on roughly the amount above $2 million rather than on the whole estate.
Does Massachusetts have a gift tax?
No. But taxable gifts are added back when deciding whether an estate must file and in computing the tax.
Sources and limitations
Other states
Planning around Massachusetts tax?
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