Bill > H3059

This bill proposes significant changes to Massachusetts estate tax law by repealing Chapter 65A and modifying the existing estate tax structure in Chapter 65C. The bill introduces a new, graduated estate tax rate schedule for estates valued over $2,000,000, with tax rates ranging from 10% to 30% depending on the total value of the estate. Notably, estates valued at $2,000,000 or less will be exempt from estate tax starting July 1, 2023. The tax applies to both residents of Massachusetts and non-residents who own property or tangible personal property in the state. The tax rates increase progressively: for example, estates between $2,000,000 and $2,500,000 are taxed at 10%, while estates over $10,000,000 are taxed at 30%. This change aims to provide more nuanced and potentially more equitable estate taxation, with the new provisions set to take effect for taxable years beginning on or after January 1, 2025. The bill represents a significant revision of Massachusetts' estate tax framework, potentially offering tax relief for smaller estates while maintaining a progressive tax structure for larger estates.

Budget and Finance

https://malegislature.gov/Bills/194/H3059