A $99,600 credit, not a dollar-one cliff
Straight from the statute: for deaths on or after January 1, 2023, a credit equal to the computed tax is allowed, "provided, however, that the credit shall not exceed $99,600," and estates with a federal taxable estate of $2,000,000 or less owe no tax at all. This 2023 reform replaced the old law's harsh dollar-one cliff — the tax now simply equals the computed amount minus this capped credit, so there's no dramatic jump right above the threshold.
Verified against real examples
A $2,500,000 estate owes about $39,200. A $3,000,000 estate owes about $82,400. A $5,000,000 estate owes about $292,000. These figures come from applying the statute's own formula — the old federal state death tax credit table, minus the $99,600 cap.
No portability, no separate inheritance tax
Each spouse has their own $2,000,000 threshold that cannot combine or transfer to the survivor — see Portability & Marital Deduction for what Massachusetts couples use instead. Massachusetts also has no separate inheritance tax; only the estate itself is taxed.