Estate Tax — Massachusetts

Massachusetts Estate Tax Calculator 2025

Massachusetts has one of the nation's lowest estate tax exemptions at $2,000,000 — vs. the federal $13,990,000. See your combined liability.

Not tax advice.Massachusetts estate tax has complex “cliff effect” rules where exceeding the $2M exemption triggers tax on the full amount. This calculator provides an approximation. Consult a Massachusetts estate attorney for your specific situation.

Estate Details

Total value of all assets: real estate, investments, retirement accounts, life insurance proceeds, business interests

Only IL and MA estate tax are currently supported. More states coming soon.

2025 Exemptions
Federal: $13,990,000 per person
Massachusetts: $2,000,000 per person

Estate Tax Estimate

Gross Estate$5,000,000
Federal Exemption−$5,000,000
Federal Taxable Estate$0
Federal Estate Tax (40%)$0 (below exemption)
Massachusetts Estate Tax
State Exemption−$2,000,000
State Estate Tax−$86,000
Total Estate Tax$86,000
Estate Passing to Heirs$4,914,000
Effective rate: 1.7% of gross estate

Massachusetts estate tax — key facts

MA vs. IL vs. Federal

FactorMass.IllinoisFederal
2025 Exemption$2M$4M$13,990,000
Top rate16%~16%40%
PortabilityNoNoYes
Cliff effectYesNoNo

The MA cliff effect

Massachusetts has a unique “cliff effect” — if your estate exceeds $2M by even $1, the estate tax applies to the full taxable estate (not just the excess).

Example: A $2,000,001 estate owes tax on $2,000,001 worth of assets, not just $1. This makes crossing the $2M threshold particularly expensive and worth planning around.

Massachusetts estate tax FAQ

What is the Massachusetts estate tax exemption in 2025?
Massachusetts has a $2,000,000 estate tax exemption per person in 2025. This is one of the lowest in the country and is not indexed for inflation. Estates above $2M owe Massachusetts estate tax in addition to any federal estate tax.
What is the cliff effect in Massachusetts estate tax?
The Massachusetts cliff effect means that once your estate exceeds $2M, the tax applies to the full taxable estate — not just the excess. This is different from federal tax, which only taxes the amount above the exemption. For example, a $2.5M estate owes MA tax on $2.5M worth of assets, resulting in a meaningful effective rate even for estates just over the threshold.
Does Massachusetts allow portability for married couples?
No. Unlike federal estate tax, Massachusetts does not allow a surviving spouse to 'port' the unused exemption of the deceased spouse. Married couples in Massachusetts should work with an estate attorney to establish bypass trusts (also called credit shelter trusts) to preserve both spouses' $2M exemptions.
What are Massachusetts estate tax rates?
Massachusetts rates range from 0.8% to 16% on the taxable estate, using a graduated bracket schedule. The effective rate for a $3M estate is approximately 6–8%; for a $5M estate, approximately 10–12%. The top rate of 16% applies to very large estates.
Is Massachusetts estate tax deductible from federal taxes?
Yes — Massachusetts estate tax paid is deductible from the gross estate for federal estate tax purposes. This is particularly valuable for estates large enough to trigger both Massachusetts and federal estate tax. Your estate attorney should calculate the optimal payment timing.

Work with a Massachusetts estate attorney

Trust planning is essential for MA estates above $2M. Find Massachusetts estate attorneys through FindLaw.

Find a MA Estate Attorney →

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