Massachusetts levies a state-level estate tax on estates above $2,000,000. Here's how it works.
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Estate Tax
Paid by the estate before assets are distributed to heirs.
Inheritance Tax
Not Applicable
Paid by the heirs on what they personally receive.
How it works in Massachusetts
Levies an estate tax with a $2 million exemption and rates ranging from 0.8% to 16%.
The Massachusetts estate tax is owed by the estate itself, typically paid by the executor or personal representative before assets are distributed. The tax applies only to the portion of the gross estate exceeding $2,000,000, and the top marginal rate is 16.0%.
Only 12 states plus D.C. impose an estate tax, and just 6 impose an inheritance tax. Maryland is the only state with both. Exemptions range from $1 million (Oregon, Rhode Island) up to the federal level (Connecticut), and top rates cluster around 16%. Compare Massachusetts against the rest in our full state-by-state directory.
Yes. Massachusetts imposes an estate tax on estates exceeding $2,000,000, with a top marginal rate of 16.0%. The tax is paid by the estate before assets are distributed to heirs.
No. Massachusetts does not impose an inheritance tax. Heirs do not pay state tax on what they receive from a Massachusetts estate.
The Massachusetts estate tax exemption for 2026 is $2,000,000. Estates valued at or below this threshold owe no state estate tax.
The estate pays the estate tax in Massachusetts before assets are distributed. Heirs do not owe a separate state inheritance tax.
Common strategies include lifetime gifting under the federal annual exclusion, irrevocable trusts (ILITs, SLATs), spousal portability planning, charitable bequests, and — for those near the exemption — relocating domicile to a state without estate or inheritance taxes. Consult an estate attorney licensed in Massachusetts.