Massachusetts taxes estates larger than $2,000,000, and it computes the tax in an unusual way: from a federal credit table that the federal government formerly allowed, minus a fixed $99,600 credit. The rules changed in 2023 and again for deaths from August 1, 2025.
This guide explains what changed, who must file and when, the calculation step by step, the full Table B, and worked examples at five estate sizes. It follows the Massachusetts Department of Revenue's Estate Tax Guide.
The Massachusetts Department of Revenue (DOR) says there have been changes to the estate tax for decedents dying on or after January 1, 2023 and again for those dying on or after August 1, 2025. The 2023 change (St. 2023, c. 50) provided a credit of up to $99,600, which the DOR says eliminates the tax for estates valued at $2 million or less and reduces it for larger estates. For deaths on or after January 1, 2023 the filing threshold is $2,000,000 of gross estate plus adjusted taxable gifts (it was $1,000,000 for deaths from 2006 through 2022). The 2024 change (St. 2024, c. 206) dealt with estates holding real or tangible property outside Massachusetts. The August 2025 change affects how the tax is calculated, in particular how real and tangible property located outside Massachusetts is handled.
For deaths on or after January 1, 2023, the personal representative of a Massachusetts domiciliary must file Form M-706 if the gross value of the estate plus adjusted taxable gifts exceeds $2,000,000. The requirement for a nonresident who owned real estate or tangible personal property in Massachusetts is the same, based on the worldwide estate, and Form M-NRA must accompany the return. The return can be filed and paid online through MassTaxConnect.
The DOR confirms two points about the threshold: you still have to file if the gross estate is $2 million or less but adjusted taxable gifts take the total over $2 million, and you still have to file if the gross estate is over $2 million but falls to $2 million or less after subtracting real and tangible property located outside Massachusetts. If no return is required you do not need a lien release; you can prepare an affidavit of no filing requirement and submit it to the registry where the property is located.
The return and payment are due nine months after the date of death. Every estate tax filer is automatically granted a six-month extension of time to file if at least 80% of the tax ultimately due is paid by the due date; the DOR's Form M-4768 can extend the time to pay for reasonable periods of up to six months at a time (granted only for undue hardship or reasonable cause), but interest still accrues from the original due date. Note that the Form M-706 instructions (for deaths on or after 1 August 2025) say requests for an extension to file or pay must be made on Form M-4768 before the due date, and that an extension to file is void if less than 80% of the final tax was paid by then, unless the estate was granted an extension to pay; because the two documents differ, confirm the process with the DOR Estate Tax Unit at (617) 887-6930; paying at least 80% of the tax by the due date is the condition in both.
Massachusetts defines its estate tax as the allowable federal credit for state death taxes under the Internal Revenue Code as it stood on December 31, 2000, after Massachusetts modifications. Changes to the federal estate tax after that date do not affect it. For deaths on or after August 1, 2025 the DOR gives these steps for a resident:
For a nonresident with Massachusetts property, the starting point is the federal gross estate less all property other than Massachusetts real and tangible property, plus any Massachusetts QTIP that is Massachusetts real or tangible property, with deductions limited to those directly related to that property.
| Adjusted taxable estate over | But not over | Credit at the start | Plus % of the excess |
|---|---|---|---|
| $0 | $40,000 | $0 | 0.0% |
| $40,000 | $90,000 | $0 | 0.8% |
| $90,000 | $140,000 | $400 | 1.6% |
| $140,000 | $240,000 | $1,200 | 2.4% |
| $240,000 | $440,000 | $3,600 | 3.2% |
| $440,000 | $640,000 | $10,000 | 4.0% |
| $640,000 | $840,000 | $18,000 | 4.8% |
| $840,000 | $1,040,000 | $27,600 | 5.6% |
| $1,040,000 | $1,540,000 | $38,800 | 6.4% |
| $1,540,000 | $2,040,000 | $70,800 | 7.2% |
| $2,040,000 | $2,540,000 | $106,800 | 8.0% |
| $2,540,000 | $3,040,000 | $146,800 | 8.8% |
| $3,040,000 | $3,540,000 | $190,800 | 9.6% |
| $3,540,000 | $4,040,000 | $238,800 | 10.4% |
| $4,040,000 | $5,040,000 | $290,800 | 11.2% |
| $5,040,000 | $6,040,000 | $402,800 | 12.0% |
| $6,040,000 | $7,040,000 | $522,800 | 12.8% |
| $7,040,000 | $8,040,000 | $650,800 | 13.6% |
| $8,040,000 | $9,040,000 | $786,800 | 14.4% |
| $9,040,000 | $10,040,000 | $930,800 | 15.2% |
| $10,040,000 | and over | $1,082,800 | 16.0% |
The adjusted taxable estate used in the table is the taxable estate (the total federal gross estate after Massachusetts modifications, less allowable federal deductions for Massachusetts purposes) less $60,000. For estates of decedents dying in 2023 or after, the tax computed from the table is reduced by the $99,600 credit.
The table applies Table B and the $99,600 credit to a Massachusetts taxable estate (the amount subject to Massachusetts estate tax) for a death on or after August 1, 2025.
| Amount subject to Massachusetts estate tax | Adjusted taxable estate (less $60,000) | Massachusetts estate tax |
|---|---|---|
| $2,000,000 | $1,940,000 | $0.00 |
| $2,500,000 | $2,440,000 | $39,200.00 |
| $3,000,000 | $2,940,000 | $82,400.00 |
| $5,000,000 | $4,940,000 | $292,000.00 |
| $10,000,000 | $9,940,000 | $968,000.00 |
For example, at $2,500,000 the adjusted estate is $2,440,000, the table credit is $106,800 + 8% of $400,000 = $138,800, and subtracting $99,600 leaves $39,200.00. At exactly $2,000,000 the credit is $99,600 and the tax is zero. Note that the filing threshold applies to the gross estate plus adjusted taxable gifts, while the tax applies to the amount after deductions, so an estate can be required to file and still owe nothing. These are our calculations from the DOR table, for illustration.
Failing to file within nine months (or the extended period) means a late filing penalty of 1% per month or fraction of a month up to 25% of the tax finally determined, and a late payment penalty of 1% per month up to 25% of the tax reported as due, plus interest. At death a lien automatically arises on all real estate the decedent owned, alone or jointly. Not filing Form M-706 (and Form M-NRA for nonresidents) prevents the DOR from issuing a Certificate Releasing the Massachusetts Estate Lien, which is needed for clear title when the property is sold. According to the Form M-706 instructions, unless the tax is paid in full the lien on Massachusetts real estate included in the gross estate is valid for 10 years from the date of death. The gross estate includes life insurance proceeds even when payable to someone other than the estate. For the federal tax see our federal estate tax exemption guide, and for other states see our state estate tax guide.
Massachusetts DOR: Estate Tax Guide, Massachusetts DOR: FAQs on the new estate tax changes, Massachusetts DOR: Instructions for Form M-706 (deaths on or after 1 August 2025).
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