Massachusetts Estate Tax: Threshold & Rates

Quick answer: $2,000,000 threshold, rates 0.8% to 16%, and a $99,600 credit cap that replaced the old cliff. Run your own numbers in the Massachusetts estate tax calculator.

The credit formula, straight from the statute

Confirmed current: "a credit shall be allowed against the tax... equal to the amount of such tax; provided, however, that the credit shall not exceed $99,600," and estates with a federal taxable estate of $2,000,000 or less "shall not be required to pay any tax" at all. In practice: compute the tax on the full estate using the old federal credit table, then subtract whichever is smaller — that computed tax, or $99,600.

Why this matters: no more dollar-one cliff

Before this 2023 reform, Massachusetts's threshold sat at just $1,000,000 with no credit mechanism at all — crossing it meant the entire estate got taxed from the first dollar, a genuinely brutal cliff. The new $99,600 cap changes the mechanics entirely: the tax now rises smoothly as the estate grows past $2,000,000, rather than jumping all at once.

Verified examples

A $2,500,000 estate: the credit table computes $138,800 on the full amount; minus the $99,600 cap leaves $39,200 owed. A $3,000,000 estate: $182,000 computed, minus $99,600, leaves $82,400. A $5,000,000 estate: $391,600 computed, minus $99,600, leaves $292,000.

The rate table itself is old, and frozen

Massachusetts computes the underlying tax using the federal state death tax credit table exactly as it stood on December 31, 2000 — 20 brackets from 0.8% up to 16%, applied to the estate reduced by a standard $60,000 adjustment. Federal changes since then, including repeal of that federal credit itself, have no effect on Massachusetts's own calculation.

Facing probate in Massachusetts?

A local probate attorney can review your estate — many offer a free consultation.

Talk to a Massachusetts attorney

Form M-706 is due 9 months after death, matching the federal deadline.

Threshold & rates — frequently asked questions

How exactly does the $99,600 credit work?

The tax is first computed on the full estate using the old federal state death tax credit table. A credit equal to that computed tax is then allowed, but the credit cannot exceed $99,600 — so the amount actually owed is the computed tax minus whichever is smaller, the computed tax itself or $99,600.

What was the old law's cliff, and how is this different?

Before 2023, Massachusetts had a $1,000,000 threshold with no credit mechanism at all — crossing it meant the whole estate was taxed from dollar one, a genuine cliff. The 2023 reform raised the threshold to $2,000,000 and added the capped credit, so the tax now rises smoothly rather than jumping.

What is the exact rate table Massachusetts uses?

The federal state death tax credit table as it stood on December 31, 2000 — 20 brackets running from 0.8% to 16%, applied to the estate minus a standard $60,000 adjustment.

When is the Massachusetts estate tax return due?

Form M-706 is due 9 months after the date of death, the same deadline as the federal Form 706.

This page provides general guidance only and is not legal or tax advice. Based on M.G.L. c. 65C, §2A(f)-(g). Confirm current figures with the Massachusetts Department of Revenue or a licensed attorney before acting.