Overview
The estate tax is a transfer tax on the value of the decedent's estate before distribution to any beneficiary.
Massachusetts estate tax returns are required if the gross estate, plus adjusted taxable gifts (computed using the Internal Revenue Code in effect on December 31, 2000), exceeds the filing threshold as follows:
- For decedents dying on or after January 1, 2016, and before January 1, 2023, with a gross estate of more than $1,000,000.
- For decedents dying on or after January 1, 2023, with a gross estate of more than $2,000,000.
Estates of decedents who died on or after January 1, 2023, are allowed a credit of $99,600 to reduce the amount of the estate tax. See MGL Ch. 65C, § 2A(f).
Changes to the federal estate tax law after December 31, 2000, have no impact on the Massachusetts estate tax.
For more information about estate tax, call (617) 887-6930. Estate Tax Rates are listed in the table under the Computation of Maximum Federal Credit for State Death Taxes section of this guide.
Definitions
Credit for State Death Taxes. A credit, formerly allowed by the federal government, that reduced the amount of federal estate tax paid by an estate. The credit is found in Internal Revenue Code § 2011 in effect on December 31, 2000.
Domicile. A person's permanent and principal home.
Federal Gross Estate. The value of property, or interest therein, as defined by the Internal Revenue Code in effect on December 31, 2000. The property may be vested or contingent, real or personal, tangible or intangible, jointly held or in the decedent’s name alone and, wherever situated, beneficially owned by the decedent at the time of death.
Intangible Property. Property that does not have value in itself, but represents value such as:
- Stocks
- Bank accounts
- Insurance
- Pensions, etc.
Lien. A legal claim by the Commonwealth that automatically arises on all property taxable in the Massachusetts estate on the date of death.
Massachusetts Estate Tax. The amount of the allowable federal credit for state death taxes, computed using the Internal Revenue Code in effect on December 31, 2000, after Massachusetts modifications in M.G.L. c. 65C, § 2A.
MA QTIP. Qualified Terminable Interest Property (QTIP) that is:
- not included in the federal gross estate of the decedent, and
- for which a Massachusetts estate tax deduction was allowed when transferred to the decedent.
Nonprobate Property. Property that is owned by the decedent, or in which the decedent had an interest, on the date of his or her death and which passes by provisions other than by will or the laws of intestacy such as:
- Assets held jointly or by a trust
- Life insurance not payable to the estate, etc.
Personal Representative. This term includes:
- Successor personal representative
- Special personal representative
- Executor
- Administrator
- Special administrator, and
- Persons who perform substantially the same function under the law governing their status.
For appointments after March 31, 2012, the terms executor and administrator were replaced with personal representative. "General personal representative" excludes special personal representative.
Person in Possession. Any person in actual or constructive possession of any property of the decedent, including probate and nonprobate property, such as jointly owned assets or life insurance.
Probate Property. All assets that were owned by the decedent in his or her name alone or as a tenant in common on the date of his or her death and that pass by will or by the laws of intestacy.
Qualified Terminable Interest Property (QTIP). Property that qualifies for the marital deduction provided
- The property passes from a decedent to a surviving spouse
- The surviving spouse has a qualifying income interest for life in the property, and
- The personal representative of the decedent’s estate makes an irrevocable election to qualify the QTIP property for the marital deduction.
Resident. Any person whose permanent and principal home is in the Commonwealth.
Tangible Personal Property. Property that is movable and has a visible existence and a value of its own, such as
- Automobiles
- Boats
- Equipment
- Furniture
- Jewelry
- Coin collections
- Silver, etc.
Filing and Payment Information
Who must file, and how is it done?
For dates of death on or after January 1, 2006 and before January 1, 2023, the personal representative of a decedent who was a domiciliary of Massachusetts must file a Massachusetts Estate Tax Return (Form M-706) if the gross value of the decedent’s estate, plus adjusted taxable gifts, exceeds $1,000,000.
For dates of death on or after January 1, 2023, the personal representative of a decedent who was a domiciliary of Massachusetts must file a Massachusetts Estate Tax Return (Form M-706) if the gross value of the decedent’s estate, plus adjusted taxable gifts, exceeds $2,000,000.
The filing requirement for a nonresident decedent who owned or transferred real estate or tangible personal property located in Massachusetts is the same as for a resident and is based on their total worldwide estate plus adjusted taxable gifts.
The personal representative of the estate of a nonresident decedent who owned or transferred real estate or tangible personal property located in Massachusetts must file a Massachusetts Nonresident Decedent Affidavit (Form M-NRA) with Form M-706. They can be filed using MassTaxConnect.
A personal representative may be held personally liable for payment of any tax shown on the return if it is not otherwise paid. Massachusetts Estate Tax Return (Form M-706) can be filed by entering information online with MassTaxConnect. Payments can also be made online, including extension payments.
Filing and paying with MassTaxConnect will result in faster processing, a quicker generation of the Massachusetts Estate Tax Closing Letter and Certificate Releasing Massachusetts Estate Lien. The return and tax payment can also be sent to:
Massachusetts Department of Revenue
P.O. Box 7023
Boston, MA 02204
Mailing the M-706 and payments may delay the processing and review process.
Who is considered the executor for purposes of the Massachusetts estate tax?
A personal representative is the person appointed, qualified and acting within Massachusetts. If there is no personal representative appointed, qualified and acting within Massachusetts, then any person in actual or constructive possession of any property of the decedent.
When must the return be filed?
If the gross estate exceeds the filing threshold for the year of death, the return and tax payment are due nine months after the date of the decedent's death.
Can an extension of time to file be granted?
As of December 5, 2016, all filers of estate tax returns are automatically granted a six-month extension of time to file their tax returns provided they have paid at least 80% of the total amount of tax ultimately due on or before the payment due date. Go to TIR 16-10: Simplified Extension Process for Individuals, Fiduciaries, Partnerships, and Estates for more information. Failure to pay at least 80% of the amount of tax finally determined to be due on or before the due date will void the automatic extension of time to file. The return will be subject to the late filing penalty and, possibly, the late payment penalty. Interest is due on any unpaid tax from the original due date.
Please see "What happens if the return is late?" for more information on interest rates.
Can an extension of the payment due date be granted?
By filing a Massachusetts Estate Tax Extension Application (Form M-4768), an extension of time to pay may be granted for a reasonable period, not to exceed six months for each request. This request must be received on or before the original filing date (9 months from the date of death). To align with the automatic extension of time to file, the initial request for an extension of time to pay will also be treated as an extension of time to file. At the end of the initial six-month period an estate must submit a request for an extension of time to pay for each additional six-month period on or before the extended due date.
When an extension of time to pay is granted, interest will still accrue on any unpaid tax due from the original due date. An extension is granted only for undue hardship/reasonable cause. An extension of up to three years from the original due date may be granted upon a showing of undue hardship/reasonable cause.
What happens if the return is late?
Failure to file a required return within nine months from the date of death or within an approved period of extension will result in penalties and interest being applied at the following rates:
- Late Filing Penalty - 1% per month (or fraction thereof) to a maximum of 25% of the tax as finally determined to be due.
- Late Payment Penalty - 1% per month (or fraction thereof) to a maximum of 25% of the tax reported as due on the return.
- Interest - The Massachusetts interest rates for underpayments and overpayments of state taxes can change each calendar quarter. If you wish to obtain information on these rates, please call DOR's Contact Center at (617) 887-6367 or toll-free in Massachusetts at (800) 392-6089.
There are other consequences in addition to these penalty and interest charges. At the time of death, a lien automatically arises by operation of law on all real estate owned by a decedent, either alone or jointly held. Failure to file a Form M-706, Massachusetts Estate Tax Return (and a Form M-NRA, Massachusetts Nonresident Decedent Affidavit, for nonresidents) will prevent the issuance of a Certificate Releasing Massachusetts Estate Lien (formerly Form M-792 ). A release of lien is necessary to obtain clear title and to sell or otherwise transfer ownership of the real estate.
When is a release of lien necessary?
For dates of death on or after January 1, 1997, if the amount of the gross estate requires the filing of a Massachusetts estate tax return, a Certificate Releasing Massachusetts Estate Lien is necessary for:
- Real estate owned jointly or as tenants by the entirety
- Real estate held in trust and
- Other real estate that is not part of the probate inventory but is includible in the gross estate.
Certificate Releasing Massachusetts Estate Lien may be required for probate and nonprobate real estate if there is a sale pending or mortgage commitment and no closing letter has been issued.
If the return was filed previously, the taxpayer should forward a copy of the purchase and sale agreement or mortgage commitment and indicate that a return was filed in order to expedite issuance of Certificate Releasing Massachusetts Estate Lien. Page 5, Part 7 of the form M-706 must be completed in order for DOR to issue the certificate releasing the Massachusetts estate lien.
Where the return has not yet been filed, an Application for Certificate Releasing Massachusetts Estate Tax Lien (Form M-4422) may be filed, provided both of the following conditions exist:
- The transaction is occurring sooner than nine months after the decedent's death, or later than nine months if the estate is filing during the time allowed by an approved extension of time to file Form M-706; and
- There is an executed purchase and sale agreement (or mortgage commitment) for real estate which is includible in the decedent's estate.
The Form M-4422 was revised and can be filed by entering information electronically through MassTaxConnect. Filing through MassTaxConnect will result in faster processing and quicker release of the Certificate Releasing Massachusetts Estate Lien. By filing on MassTaxConnect, the estate can access and print the Certificate Releasing Massachusetts Estate Lien from its MassTaxConnect account.
The application must be filed with:
- An attested copy of the deed
- A copy of the purchase and sale agreement or mortgage commitment
- Copy of letter of authority or trust document
- Payment of the estimated amount of the tax due, and
- A copy of the death certificate
A completed Form M-706 (and a Form M-NRA for nonresidents) still must be filed within nine months of the date of death or during the time allowed by an extension of time to file Form M-706.
How can a personal representative or other fiduciary obtain a release of lien on real estate when there is no Massachusetts estate tax filing requirement?
For estates of decedents dying on or after January 1, 1997, an affidavit of the personal representative is required to release the gross estate of the lien for estates that are less than the Massachusetts filing requirement for the year of death. The affidavit must be:
- Subscribed to under the pains and penalties of perjury
- Recorded in the registry of deeds, and
- Accurately stating that the gross estate of the decedent does not necessitate a Massachusetts estate tax filing.
DOR does not publish blank affidavits for filing in the registry of deeds.
For the estates of decedents that equal or exceed the applicable threshold triggering a Massachusetts filing requirement, the Commissioner of Revenue will release the lien with respect to property if the Commissioner is satisfied that the collection of the tax will not be jeopardized. The Commissioner will release the lien by issuing Certificate Releasing Massachusetts Estate Lien.
What documents must accompany Form M-706?
Various documents must be filed with the return. Failure to file these documents will delay the return's processing. The major supporting documents required to be filed with the Massachusetts Estate Tax Return, where applicable, are:
- An executed copy of the federal estate tax return, Form 706 with revision date of July 1999 U.S. Form 706 (PDF), with all attachments described in the instructions for that form.
- If the estate is required to file a current federal Form 706, include a copy of that return, in addition to Form 706 (with a revision date of July 1999) and the Form M-706.
- A signed Form M-NRA: Massachusetts Nonresident Decedent for the estates of nonresident decedents with Massachusetts tangible property.
- Copy of the death certificate.
- Copy of will and trust.
- Copy of Letters of Authority.
- Form M-2848 for third-party representation.
How must property included in the estate be valued?
All property includible in the gross estate is reported at its fair market value on the date of the decedent's death or on the alternate valuation date six months later.
Special Internal Revenue Service rules apply to the Qualified Family-Owned Business Interest Deduction (Schedule T on the July 1999 revision of the federal Form 706) and the Qualified Conservation Easement Exclusion (Schedule U on the July 1999 revision of the federal Form 706). For more information on these rules, please contact the Estate Tax Unit at (617) 887-6930.
What property must be included in the gross estate?
The gross estate includes all property in which the decedent had an interest. It also includes:
- Certain transfers made during the decedent's life without an adequate and full consideration in money or money's worth
- Annuities
- Joint estates with right of survivorship
- Tenancies by the entirety
- Life insurance proceeds (even though payable to beneficiaries other than the estate)
- Property over which the decedent possessed a general power of appointment
- Dower or curtesy (or statutory estate) of the surviving spouse
- Community property to the extent of the decedent's interest as defined by applicable law.
Massachusetts Estate Tax Computation
This guide explains how Massachusetts computes its estate tax by referencing the federal credit for state death taxes (Internal Revenue Code as of December 31, 2000), along with special adjustments and credits for estates of decedents with different dates of death and residency statuses.
Key Components
- Federal gross estate (Internal Revenue Code § 2031(a) in effect on December 31, 2000)
- Federal credit for state death taxes (Internal Revenue Code § 2011 in effect on December 31, 2000)
- $99,600 MA credit reducing MA estate tax for decedents dying on or after January 1, 2023
- Exclusion of real and tangible property located outside of MA for the computation of the Massachusetts estate tax
- Inclusion of MA QTIP assets claimed on predeceased spouse’s MA estate tax return
- Use of tax Table B for the computation of the maximum credit for State Death Taxes. Table B worksheet is found on the Form 706 Instructions, July 1999 revision.
The Massachusetts estate tax for the estates of residents and nonresidents is computed with reference to the allowable federal estate tax credit for state death taxes formerly allowed in the Internal Revenue Code in effect on December 31, 2000. If an estate consists solely of property subject to Massachusetts estate taxation, it pays to Massachusetts an amount equal to the federal credit for state death taxes computed using the Internal Revenue Code in effect on December 31, 2000. For estates of decedents dying on or after January 1, 2023, the Massachusetts estate tax is reduced by a credit of $99,600. The federal rate table, Table B, is used to compute the credit for state death taxes.
The computation of the Massachusetts estate tax for resident decedents with or without out-of-state real and tangible property and nonresident decedents with Massachusetts real and tangible property is detailed below.
1. Estates of Decedents Dying on or after August 1, 2025
A. Resident Decedent with or without Out-of-State Property
- Federal gross estate.
- Minus value of real and tangible property outside Massachusetts, if any.
- Plus, value of MA QTIP assets, other than MA QTIP which is real or tangible property outside Massachusetts.
- Minus allowable federal deductions for Massachusetts purposes. This result is the Amount subject to Massachusetts estate tax
- Calculate (with Table B below) allowable federal credit for state death taxes using a taxable estate equal to the amount subject to Massachusetts estate tax.
- Subtract the $99,600 MA credit from the calculated result. This final amount, not less than zero, is the Massachusetts estate tax liability.
B. Nonresident Decedent with Massachusetts Property
- Federal gross estate.
- Minus value of all property other than MA real and tangible property.
- Plus, value of MA QTIP assets which are real or tangible property in Massachusetts.
- Minus allowable federal deductions directly related to Massachusetts property. This result is the Amount subject to Massachusetts estate tax.
- Calculate (with Table B below) allowable federal credit for state death taxes using a taxable estate equal to the amount subject to Massachusetts estate tax.
- Subtract the $99,600 MA credit from the calculated result. This final amount, not less than zero, is the Massachusetts estate tax liability.
2. Estates of Decedents Dying January 1, 2023 – July 31, 2025.
The Massachusetts estate tax laws changed for deaths occurring on or after January 1, 2023, regarding out-of-state property.
For detailed instructions on how Massachusetts estate tax is calculated for resident decedents with out-of-state real or tangible property and for nonresident decedents with Massachusetts real and/or tangible property who died between January 1, 2023, and July 31, 2025, please refer to the Estate Tax FAQs: New Estate Tax Changes
Line by line instructions for the calculation of the estate tax and completion of Form M-706 for all decedents with dates of death between January 1, 2023 and July 31, 2025 are also available in the Instructions for Form M-706 (for dates of death on or after January 1, 2023)
3. Estates of Decedents Dying January 1, 2006 – December 31, 2022
For detailed instructions on how Massachusetts estate tax is calculated for all decedents with dates of death prior to January 1, 2023, please refer to the line by line instructions for the calculation of the estate tax and completion of Form M-706 in the Instructions for Form M-706 (for dates of death prior to January 1, 2023)
4. Computation of Maximum Federal Credit for State Death Taxes
The following table is used to compute the credit for state death taxes under Internal Revenue Code § 2011 in effect on December 31, 2000. Table B worksheet is found on the Form 706 Instructions, July 1999 revision and on page 6 of the Form M-706, Rev. 08/25.
Please note: For taxable estates of decedents dying in 2023 or after, the Massachusetts estate tax, as computed based on the maximum federal credit for state death taxes, is reduced by a credit of $99,600. MGL ch. 65C, § 2A(f).
Table B - Computation of Maximum Credit for State Death Taxes
Adjusted taxable estate *
| From | To | Credit | + % of | Excess over |
|---|---|---|---|---|
| $0 | $40,000 | $0 | 0.0 | $0 |
| 40,000 | 90,000 | 0 | 0.8 | 40,000 |
| 90,000 | 140,000 | 400 | 1.6 | 90,000 |
| 140,000 | 240,000 | 1,200 | 2.4 | 140,000 |
| 240,000 | 440,000 | 3,600 | 3.2 | 240,000 |
| 440,000 | 640,000 | 10,000 | 4.0 | 440,000 |
| 640,000 | 840,000 | 18,000 | 4.8 | 640,000 |
| 840,000 | 1,040,000 | 27,600 | 5.6 | 840,000 |
| 1,040,000 | 1,540,000 | 38,800 | 6.4 | 1,040,000 |
| 1,540,000 | 2,040,000 | 70,800 | 7.2 | 1,540,000 |
| 2,040,000 | 2,540,000 | 106,800 | 8.0 | 2,040,000 |
| 2,540,000 | 3,040,000 | 146,800 | 8.8 | 2,540,000 |
| 3,040,000 | 3,540,000 | 190,800 | 9.6 | 3,040,000 |
| 3,540,000 | 4,040,000 | 238,800 | 10.4 | 3,540,000 |
| 4,040,000 | 5,040,000 | 290,800 | 11.2 | 4,040,000 |
| 5,040,000 | 6,040,000 | 402,800 | 12.0 | 5,040,000 |
| 6,040,000 | 7,040,000 | 522,800 | 12.8 | 6,040,000 |
| 7,040,000 | 8,040,000 | 650,800 | 13.6 | 7,040,000 |
| 8,040,000 | 9,040,000 | 786,800 | 14.4 | 8,040,000 |
| 9,040,000 | 10,040,000 | 930,800 | 15.2 | 9,040,000 |
| 10,040,000 | --------------- | 1,082,800 | 16.0 | 10,040,000 |
*The "adjusted taxable estate" used in determining the allowable credit for state death taxes in the above table is the taxable estate (total federal gross estate after Massachusetts modifications in M.G.L. c. 65C, § 2A, minus allowable federal deductions for Massachusetts purposes) less $60,000. There is no federal credit for state death taxes if the "adjusted taxable estate" is $40,000 or less.
Can the tax liability be adjusted after Form M-706 is filed?
A taxpayer who believes the assessed tax liability exceeds the amount properly due may submit an amended return within
- 3 years from the due date of the return or the filing date, whichever is later, taking into account any extension of time for filing the return, or
- 2 years from the date the tax was assessed, or
- 1 year from the date the tax was paid
whichever occurs latest.
An estate may be a party to litigation that may reduce the amount of the Massachusetts estate tax and the litigation will not be resolved before the expiration of the statutory period allowed for filing an application for abatement. In those cases, an estate cannot file a substantiated abatement because the result of the litigation is unknown. To preserve its ability to claim additional debts and expenses related to the litigation, the estate may request that DOR extend the period for the assessment of estate tax. The statute extension also extends the period of time to file an application for abatement, or an amended return. A statute date is extended using a Form A-37, Consent Extending Period for Assessment of Estate Tax. Such an extension request must be renewed annually with an update from the estate representative to DOR on the status of the pending litigation. A taxpayer also may request settlement consideration by filing an Appeals Form DR-1 with DOR's Office of Appeals. For more information about the appeals process, go to A Guide to the Department of Revenue: Your Taxpayer Bill of Rights.
Contact
For more information about estate tax, call (617) 887-6930.
For all other ways to connect with DOR, go to Contact DOR.