Calculate federal and state estate taxes for Massachusetts (MA)
⚠️ State Estate Tax: 0.8%-16%Massachusetts imposes a state estate tax with one of the LOWEST exemptions at $2M. If the estate exceeds $2M, the ENTIRE estate is taxed (cliff effect). Rates range from 0.8% to 16%.
Gift up to $19,000 per person per year (2026) without using your lifetime exemption. A married couple can give $38,000 per person.
Remove life insurance proceeds from your taxable estate by placing the policy in an ILIT. This can save 40% in estate taxes on the insurance proceeds.
Receive income during your lifetime, then pass the remainder to charity — reducing your taxable estate while generating income.
Transfer appreciating assets to heirs at reduced or zero gift tax cost. Ideal for assets expected to grow significantly.
A surviving spouse can use the deceased spouse's unused federal exemption — effectively doubling the exemption to $27.22M for a married couple.
Massachusetts imposes a state estate tax. Moving to a state without estate tax (like FL, TX, NV) could save 0.8%-16% on your estate above the state exemption.
Yes. Massachusetts imposes a state estate tax with an exemption of $2,000,000 and rates of 0.8%-16%.
No. Massachusetts does not impose a state inheritance tax.
The federal estate tax exemption for 2026 is $13.61 million per individual ($27.22 million for married couples using portability). Estates below this threshold owe no federal estate tax. Note: This exemption is set to be cut roughly in half after 2025 under the Tax Cuts and Jobs Act sunset — check current law.
Estate tax is paid by the estate before distribution. Inheritance tax is paid by the individual beneficiaries after they receive their inheritance. The rate often depends on the beneficiary's relationship to the deceased.
Common strategies include: annual gifting ($19K/year per person), charitable donations, irrevocable trusts (ILITs, GRATs, CRTs), spousal portability, and potentially relocating to a state without estate/inheritance tax.