An Act relative to modernizing the estate tax

This bill modernizes Massachusetts' estate tax by establishing a $5 million exemption threshold for estates of deceased Massachusetts residents. Estates with a federal taxable estate valued at $5 million or less (after certain deductions) will owe no state tax, effective for deaths on or after July 1, 2022. For estates exceeding this threshold, the tax is calculated based on the federal taxable estate reduced by $5 million, with the exemption amount adjusted annually to reflect changes in Massachusetts wages. The changes apply to estates of decedents dying on or after July 1, 2024, and aim to align state tax policy with current economic conditions.