Updates
- Amended by St. 2023, c. 50, §§ 36-37 effective for the estates of decedents dying on or after January 1, 2023
- Amended by St. 2024, c. 206, § 13, effective for the estates of decedents dying on or after January 1, 2023
- Amended by St. 2025, c. 9, § 35, effective August 1, 2025
(a)
A tax is hereby imposed upon the transfer of the estate of each person dying on or after January 1, 1997 who, at the time of death, was a resident of the commonwealth. The amount of the tax shall be equal to the credit for state death taxes that would have been allowable to a decedent’s estate as computed under section 2011 of the Code, as in effect on December 31, 2000, hereinafter referred to as the “credit”. The credit shall be determined based on the value of the federal gross estate after such estate is increased by the value of any property: (i) not included in the federal gross estate; (ii) in which the decedent had at death a qualifying income interest for life described in subsection (c) of section 3A; (iii) for which a deduction was allowed for Massachusetts estate tax purposes with respect to the transfer of such property to the decedent; and (iv) which is not real or tangible personal property located outside of the commonwealth at the time of death. If the federal gross estate of a person includes real or tangible personal property located outside of the commonwealth at the time of death, the credit shall be determined based on the value of the federal gross estate after such estate is reduced by the value of such real or tangible personal property located outside of the commonwealth and increased by the value of any property: (i) not included in the federal gross estate; (ii) in which the decedent had at death a qualifying income interest for life described in subsection (c) of section 3A; (iii) for which a deduction was allowed for Massachusetts estate tax purposes with respect to the transfer of such property to the decedent; and (iv) that is not real or tangible personal property located outside of the commonwealth at the time of death; provided, however, that for the purposes of calculating the federal taxable estate, no deduction shall be allowed that is attributable to such real or tangible personal property located outside of the commonwealth.
(b)
A tax is hereby imposed upon the transfer of real property situated in this commonwealth and upon tangible personal property having an actual situs in this commonwealth of every person who at the time of their death was not a resident of this commonwealth. The amount of this tax is the amount of the credit calculated based upon a federal gross estate that is equal to the sum of: (i) the value of the estate’s real or tangible personal property located in the commonwealth; and (ii) the value of any real or tangible property: (A) not included in the federal gross estate; (B) in which the decedent had at death a qualifying income interest for life described in subsection (c) of section 3A; (C) for which a deduction was allowed for Massachusetts estate tax purposes with respect to the transfer of such property to the decedent; and (D) which is not located outside of the commonwealth at the time of death. Under this subsection, for the purposes of calculating the federal taxable estate, no deduction shall be allowed that is attributable to property other than such real or tangible personal property located in the commonwealth.
(c)
Notwithstanding any other provision of law, the tax imposed by subsections (a) and (b) shall be computed upon the value of any property subject to a power of appointment which is includible in the federal gross estate, notwithstanding that a tax has been paid thereon pursuant to section fourteen of chapter sixty-five.
(d)
For the purposes of computing the tax imposed by subsections (a) and (b), the provisions of section three shall not apply.
(e)
For the estate of decedents dying on or after January 1, 2003, all references and provisions in this chapter to the Internal Revenue Code or Code, unless the context clearly indicates otherwise, shall be to the Code as in effect on December 31, 2000.
(f)
For the estates of decedents dying on or after January 1, 2023, a credit shall be allowed against the tax imposed by subsections (a) and (b) equal to the amount of such tax; provided, however, that the credit shall not exceed $99,600.
(g)
The estates of decedents dying on or after January 1, 2023 shall not be required to pay any tax under subsections (a) and (b) if the value of the federal taxable estate is not more than $2,000,000.
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| Last updated: | June 30, 2025 |
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