Updated October 7, 2026. Quick answer: Massachusetts’ estate tax threshold is $2,000,000 for deaths in 2026, and the statute sets the same $2,000,000 for deaths on or after January 1, 2023 with no end date, so it also applies to 2027 unless the Legislature amends it. It is a threshold with a credit, not a plain exemption. The federal exclusion is $15,000,000 for 2026.
Massachusetts estate tax exemption: 2026 and 2027 at a glance
| Item | What the documents say |
|---|---|
| Exemption, 2026 deaths | $2,000,000 |
| How it is set | A threshold written into the statute for deaths on or after January 1, 2023 |
| 2027 figure | $2,000,000, because the statute has no end date |
| Rates | The credit for state death taxes as of December 31, 2000, less a credit of up to $99,600 |
| Return and deadline | Not stated in the statute; see the Department of Revenue |
| Federal basic exclusion amount, 2026 | $15,000,000 |
| Sources | Massachusetts General Court; IRS Revenue Procedure 2025-32 |
What changes in 2027
Chapter 65C, section 2A provides that, for estates of decedents dying on or after January 1, 2023, no tax is due if the federal taxable estate is not more than $2,000,000. The provision has no end date and no indexing, so the same threshold applies to 2027 deaths unless the Legislature amends it.
The statute shows a 2025 amendment to how the federal gross estate is increased when computing the credit. This page found no change to the $2,000,000 threshold or to the $99,600 credit cap.
How the Massachusetts estate tax works
Above the threshold the tax is not a flat rate on the excess. It is the credit for state death taxes under section 2011 of the federal Code as in effect on December 31, 2000, reduced by a credit that cannot exceed $99,600. An estate at exactly $2,000,000 owes nothing, because the test is whether the federal taxable estate is more than $2,000,000.
In the documents’ own words
- M.G.L. c. 65C, Section 2A (Massachusetts General Court): “For the estates of decedents dying on or after January 1, 2023”
- M.G.L. c. 65C, Section 2A (Massachusetts General Court): “the value of the federal taxable estate is not more than $2,000,000”
- M.G.L. c. 65C, Section 2A (Massachusetts General Court): “the credit shall not exceed $99,600”
- M.G.L. c. 65C, Section 2A (Massachusetts General Court): “section 2011 of the Code, as in effect on December 31, 2000”
How this compares with the federal exemption
Federal estate tax is separate. Revenue Procedure 2025-32 says the One Big Beautiful Bill Act, section 70106, increased the “basic exclusion amount to $15,000,000 for calendar year 2026”. CMG’s page on the federal exemption for 2027 is the federal estate tax exemption for 2027. The state figure on this page is not the federal one: it is the amount at which Massachusetts starts to tax an estate.
What the documents do not say
- The Department of Revenue’s Massachusetts estate tax guide and Form M-706 instructions could not be read when this page was built, so the return form, the due date and portability are not stated here.
- The statute does not print the credit table, and this page does not reproduce it.
Common mistakes
- Treating $2,000,000 as a deduction subtracted from the whole estate; above the threshold the tax comes from the credit table, then a credit of up to $99,600 is applied.
- Using the federal $15,000,000 base for a Massachusetts estate.
Related: Massachusetts estate tax (2026), estate tax by state, the federal estate tax exemption for 2027, Massachusetts probate cost, and Massachusetts retirement taxes.
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Answer againSources
- M.G.L. c. 65C, Section 2A: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter65C/Section2A
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and an estate attorney, a tax preparer or the state agency itself is the right place to confirm anything consequential.