Tools for Heirs and Beneficiaries in Massachusetts

Massachusetts levies an estate tax above $2,000,000 (top rate 16%) and no inheritance tax; the federal estate tax applies above $15,000,000.

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6 tools for Massachusetts

Who Inherits Without a Will?

Without a will in Massachusetts, a surviving spouse takes the entire estate when every child of either spouse is a child of both, and descendants divide what passes to them per capita at each generation.

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How Much Are Estate & Inheritance Taxes?

Massachusetts levies an estate tax above $2,000,000 (top rate 16%) and no inheritance tax; the federal estate tax applies above $15,000,000.

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What Taxes Apply to My Inheritance?

In Massachusetts, beneficiaries owe no inheritance tax and the estate pays any estate tax above $2,000,000; probate assets arrive when the estate closes, 6 months to 9 months for a simple estate.

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How Does Step-Up in Basis Work?

Inherited assets in Massachusetts take a basis reset to fair market value on the date of death, and the gain on a later sale faces ordinary income tax at the state's regular rates.

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When Do I Have to Withdraw an Inherited IRA?

See which federal withdrawal rules apply to an inherited IRA, Roth IRA, or employer plan, the deadline year, and the missed-withdrawal tax.

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Do I Have to File Tax Returns for Someone Who Died?

Massachusetts requires a final state income tax return for the decedent alongside the federal Form 1040; a federal estate tax return (Form 706) is required only for estates above $15,000,000.

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Yes. Massachusetts imposes a state estate tax on an estate above $2,000,000, separate from and in addition to the federal estate tax. Massachusetts has no inheritance tax on the beneficiary.

The Massachusetts estate tax exemption is $2,000,000; an estate below it owes no state estate tax. The exemption is a fixed amount set by statute. A taxable estate faces graduated rates up to 16%.

No. The IRS does not treat inherited money, real estate or personal items as income, so a beneficiary in Massachusetts does not report them on a federal return when received. Two exceptions: an inherited retirement account (a 401(k) or a traditional IRA) is taxed as ordinary income as it is withdrawn, and earnings after the date of death are taxable. Inherited property takes a stepped-up basis, its value on the date of death, for any later capital gain.

When someone dies, the cost basis of the property they leave is reset to its fair market value on the date of death under IRC § 1014. A later sale is taxed on the gain above that stepped-up basis, not above what the original owner paid, so the appreciation of the owner's lifetime is never taxed. The rule is federal and applies in Massachusetts as in every state.

Massachusetts intestacy law decides. Massachusetts follows separate property rules: the surviving spouse's share depends on whether children survive and whose children they are. The estate passes to the closest surviving relatives, in most cases the spouse and children first, then in order: Parents; Descendants of parents; Next of kin in equal degree; Escheat.

Tools for Heirs and Beneficiaries in Massachusetts

Estate taxes are paid by the estate before anything is distributed; inheritance taxes are paid by the person who receives the property. In 2026 the federal estate tax reaches only estates above $15 million per person, and there is no federal inheritance tax. 12 states plus the District of Columbia levy their own estate tax at lower thresholds, and 5 states levy an inheritance tax whose rate depends on the beneficiary's relationship to the person who died.

Beneficiaries in Massachusetts owe no inheritance tax; the estate pays any estate tax before distribution; inherited assets take a basis reset to fair market value on the date of death, and the gain on a later sale faces ordinary income tax at the state's regular rates. Probate assets arrive when the estate closes: a simple estate closes in 6 months to 9 months.

SimplyTrust Editorial·Updated September 15, 2026

Legal Sources

Data sourced from Massachusetts statutes and official state code. How we research.