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Does Massachusetts Have an Inheritance Tax or Estate Tax? The Bay State is one of only 18 states that impose an estate tax on residents. Any Massachusetts resident who has an estate valued at more than $1 million between property and adjusted taxable gifts is required to file a Massachusetts estate tax return.
If youre responsible for the estate of someone who died, you may need to file an estate tax return. If the estate is worth less than $1,000,000, you dont need to file a return or pay an estate tax.
In Massachusetts, estates must file an estate tax return if the estate value is over $1 million. This tax will also apply to the entire estate value, not just the portion above the million-dollar mark. In addition to this rule, only the value over $40,000 will be subjected to the tax.
There is no federal inheritance taxthat is, a tax on the sum of assets an individual receives from a deceased person. However, a federal estate tax applies to estates larger than $11.7 million for 2021 and $12.06 million for 2022. The tax is assessed only on the portion of an estate that exceeds those amounts.
The best way to protect your assets is to create trusts. Depending on the total value of your estate and whether you are married, you and your spouse can create one or multiple types of trusts. Each may individually fall below the million dollar threshold, allowing you to avoid estate taxes in Massachusetts.
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There is no inheritance tax in Massachusetts.
Massachusetts estate tax returns may be filed online through MassTaxConnect. You will need to create an online account to file the estate tax return.
If youre a resident of Massachusetts and leave behind more than $1 million (for deaths occurring in 2022), your estate might have to pay Massachusetts estate tax. The Massachusetts tax is different from the federal estate tax, which is imposed only on estates worth more than $12.06 million (for deaths in 2022).
This calculation is made as follows: (Gross value of real property and tangible personal property in Massachusetts Federal gross estate) Credit for state death taxes.
The Massachusetts estate tax exemption is $1 million. This means that if your estate is worth more than $1 million when you die, money will be owed to the state before its disbursed to your heirs. However, if its smaller than $1 million, then no state estate taxes will be owed.

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