Massachusetts Estate Tax Guide
Last updated: 18 Oct 2025 • Author: Alexander Foelsche CPA (US), WP (DE), RE (CH)
Massachusetts Estate Tax & Probate — Complete Guide
What executors and families need to know about Massachusetts probate and estate tax: who files, what’s taxable, nonresident rules & apportionment, forms, deadlines & extensions, elections (MA-only QTIP), valuation and liens—plus a calculator, case notes, and a nonresident guide.
Massachusetts Probate Basics
Courts & intestacy
Probate is handled by the Massachusetts Probate & Family Court (by county). If there is no will, distribution follows Massachusetts intestacy statutes. Ancillary probate is common when nonresidents own Massachusetts real property.
Typical probate steps
Open estate → appoint personal representative → notices → inventory & appraisals → pay debts/expenses/taxes → accountings → distribution & close.
Massachusetts Estate Tax — At a Glance
Official Pages, Forms & Where to File/Pay
- Massachusetts Department of Revenue — Form M-706 & Instructions (current year).
- Statute: M.G.L. c. 65C (Estate Tax); regulations 830 CMR 65C.
- Federal: IRS Form 706 & instructions (attach pages/schedules or pro-forma if no federal filing).
Massachusetts Situs vs. Non-Situs (for Nonresidents)
| Asset type | MA treatment | Notes |
|---|---|---|
| Real property in Massachusetts | Included | Homes, condos, land, commercial property. Appraisals recommended. |
| Tangible personal property kept in MA | Included | Boats, vehicles, equipment, artwork physically in Massachusetts. |
| Intangibles (stock, bank/brokerage) | Generally excluded | For nonresidents, excluded unless a Massachusetts business situs exists. |
| Entity interests (LLC/partnership) | Generally excluded | Treated as intangibles; avoid MA-centered management/records that imply business situs. |
If you’re a nonresident with Massachusetts assets, see the Nonresident Guide for examples and a filing checklist.
Filing Mechanics, Deadlines & Payment
- When to file: M-706 due within 9 months from date of death.
- Extension to file: typically up to 6 months; submit by the original due date (attach IRS 4768 approval if used). Does not extend time to pay.
- Extension to pay: separate request; interest accrues and security may be required.
- Where to file & pay: File with the Massachusetts DOR; pay electronically where available or by check with the current voucher.
- Installments: If federal IRC §6166 relief applies, align the Massachusetts portion (especially for MA-situs business assets).
Planning Ideas to Reduce Massachusetts Estate Tax
- MA-only QTIP. Defer MA tax at the first death even if no federal QTIP is made; track inclusion for the survivor.
- Credit shelter & charitable planning. Coordinate with the $2M exclusion and anti-cliff credit; attach robust support.
- Nonresident situs. Limit MA-situs assets; avoid business-situs facts for intangibles.
- Valuation & deductions. Use strong local appraisals; keep court orders/invoices to support deductions.
- Liquidity & lien. Stage cash for the 9-month payment and prepare early for lien discharge if a sale/closing is imminent.
Tools & Subpages
Calculator
Estimate MA estate tax for residents and nonresidents; models the $2M exclusion, anti-cliff credit, and apportionment.
Forms & Deadlines
All forms (M-706) with due dates, extensions, payments, lien discharge, and checklists.
Nonresident Guide
Who must file, what is MA-situs, apportionment mechanics, examples, and checklists.
Case Notes
Authorities-first summaries on $2M exclusion/credit, MA-only QTIP, nonresident apportionment, deadlines, & liens.
Planning
Strategies to reduce exposure, allocate burden, and fund payments—checklists and workflows.
FAQs
Does Massachusetts have an estate or an inheritance tax?
Massachusetts has a state estate tax (paid by the estate). For 2023+ decedents, a $2M exclusion and anti-cliff credit apply.
When is Massachusetts Form M-706 due?
Nine months after the date of death. Extensions can give more time to file; time to pay requires a separate request and may accrue interest.
How are nonresidents taxed?
Only on MA-situs real and tangible property. Most nonresident intangibles are excluded unless Massachusetts business-situs facts exist. Liability is limited by apportionment.
What is a Massachusetts-only QTIP election?
An election on a timely M-706 to defer MA tax at the first death even if no federal QTIP is made; the property is later included in the survivor’s MA estate.
Need help filing or planning?
We assist with Massachusetts probate coordination, resident and nonresident filings, MA-only QTIP and charitable elections, valuation documentation, lien discharges, and liquidity planning.