An Act relative to modernizing the estate tax

This bill updates Massachusetts' estate tax rules to align with recent federal changes by introducing a $2 million exemption for estates of individuals dying on or after July 1, 2023. Under the new provisions, estates valued at $2 million or less will not owe any state estate tax, while larger estates will calculate taxes based on the value remaining after subtracting that $2 million threshold. The legislation also adjusts how taxes are computed for assets located outside the state and clarifies how certain federal deductions are applied to determine the taxable amount. These changes directly affect residents of Massachusetts who pass away after the specified effective date and have estates exceeding the new exemption limit.