MA Estate Tax Filing Threshold: $2 Million

Good news for Massachusetts residents, the state estate tax exemption doubled! If a Massachusetts resident passes away, on or after January 1, 2023, with assets valued at less than $2,000,000, rather than $1,000,000, they do not have to file an M-706 with the Massachusetts Department of Revenue and pay state estate taxes. See MGL ch. 65C, § 2A(f). This change was signed into law by Governor Maura Healy on October 4, 2023 and is retroactive to the beginning of 2023.

Massachusetts was tied with Oregon as having the lowest estate tax exemption in the country. Now Massachusetts moved down the list to only the 3rd worst state to die. Overall, this is still not great for Massachusetts residents and will not stop the massive outbound migration of the wealthy individuals with more than $2,000,000 (or $4,000,000 for married couples with proper trusts in their estate plans). However, if the value of the total estate is over $2,000,000 there is now a $99,600 credit based on the table here.

The ranking of the WORST STATES TO DIE IN (plus DC) based on estate tax exemptions for 2024 are:

1. Oregon: $1,000,000

2. Rhode Island: $1,774,583

3. MASSACHUSETTS: $2,000,000

4. Washington: $2,193,000

5. Minnesota: $3,000,000

6. Illinois: $4,00,000

7. District of Columbia: $4,710,000

8. Maryland and Vermont: $5,000,000

9. Hawaii: $5,490,000

10. Maine: $6,410,000

11. New York: $6,940,000

12. Connecticut: $13,610,000

For additional information please contact WLF at (978) 296-4140 or info@wilsonlf.com.