Bill > S2088

This bill modernizes the Massachusetts estate tax by updating several key provisions. Currently, the estate tax is calculated based on a credit system referencing federal tax code as it existed in 2000, but the bill changes this by establishing a new $5,000,000 exemption threshold effective July 1, 2024. Specifically, estates of decedents dying on or after this date will only be taxed on the value of their federal taxable estate that exceeds $5,000,000, and estates valued at $5,000,000 or less will be exempt from estate tax. Additionally, the bill introduces an annual adjustment mechanism where the $5,000,000 threshold will be automatically updated to reflect changes in quarterly wages in Massachusetts, as determined by the U.S. Department of Commerce's Bureau of Economic Analysis. The bill also maintains existing provisions about reducing tax liability for estates that include property located outside of Massachusetts. These changes are designed to provide more clarity and predictability in estate tax calculations and potentially reduce the tax burden on smaller estates.

Budget and Finance

https://malegislature.gov/Bills/194/S2088