Bill > S1995

This bill updates Massachusetts' estate tax law to align with federal estate tax regulations, specifically changing two key provisions for estates of individuals who die on or after January 1, 2025. First, the bill establishes a credit against estate taxes that cannot exceed the federal level set by the Internal Revenue Service (IRS) under 26 USC § 2010. Second, the bill exempts estates from paying state estate taxes if the federal taxable estate value does not exceed the threshold established by the IRS in Chapter 11 of the United States Code. In practical terms, this means that Massachusetts will now more closely mirror federal estate tax rules, potentially reducing the tax burden on estates by allowing a credit and establishing a minimum threshold below which no estate tax will be imposed. The bill aims to provide more consistency between state and federal estate tax treatment and potentially offer some tax relief for smaller estates.

Budget and Finance

https://malegislature.gov/Bills/194/S1995