Home / Massachusetts Estate Tax

Massachusetts Estate Tax

Massachusetts levies its own estate tax with a $2M exemption and a top rate of 16%. A typical Boston-area home can push an estate over the threshold on its own.

By Priya Raman, Contributing Writer, Policy & Regulation
Updated 2026-07-08

What this actually means for a Massachusetts estate

A home plus retirement savings in a Boston suburb can cross the $2 million line without any unusual wealth, catching estates that would be untouched at the federal level. Lifetime gifting (the gift tax calculator) and the step-up in basis (the step-up calculator) remain the standard tools once an estate is in range.

Why can a Massachusetts home alone trigger estate tax?

Because the exemption is only $2,000,000, one of the lowest in the country, and home values across much of eastern Massachusetts sit close enough to that figure that a house by itself, with no other assets counted, can push an estate over the line.

Above that threshold, Massachusetts applies a graduated rate topping out at 16% on the taxable estate above the exemption, after the unlimited marital deduction and charitable bequests are subtracted. See where your own numbers land in the estate tax calculator.

Massachusetts estate tax, 2026 (verified July 2026)
Figure	Amount
Exemption	$2,000,000
Top rate	16%
Source	Massachusetts estate tax statute (flat threshold, not annually indexed)

Confirm current figures with the Massachusetts Department of Revenue before relying on them for a filing.

Good to know

Frequently asked: Massachusetts estate tax

Why can a Massachusetts home alone trigger estate tax?

Because the exemption is only $2 million, and home values in much of eastern Massachusetts approach or exceed that figure without any other assets counted.

Is the $2 million a per-person or per-couple exemption?

Per person. Assets passing to a surviving spouse are covered by the marital deduction, but the $2 million exemption itself is not automatically doubled the way federal portability works.

What rate applies once an estate crosses $2 million?

A graduated rate that tops out at 16% on the taxable estate above the exemption.

Is this tax advice?

No, it is an educational reference. Confirm current figures with the Massachusetts Department of Revenue or an estate attorney.