Governor Maura Healey signed a tax relief package into law on October 4, 2023, making changes to how the Massachusetts estate tax is calculated, as well as several changes to Massachusetts income tax laws.
Estate Tax Changes
The new law increases the Massachusetts asset threshold at which the estate tax is imposed from $1 million to $2 million and eliminates the so-called “estate tax cliff.” Previously, Massachusetts taxed Massachusetts estates with assets in excess of $1 million, calculating the tax due on the entire value of the estate. Effective for the estates of decedents dying after January 1, 2023, only assets in excess of the $2 million threshold are subject to the state-level estate tax.
