The Massachusetts Estate Tax: What You Need to Know in 2025

Planning for the future is more than deciding who gets what. It is about making sure the people you care about are supported and that your hard-earned assets are passed on with as little stress and cost as possible.

In Massachusetts, understanding how the estate tax works is a key part of protecting your legacy. With the current rules in place for 2025, now is the time to review your plan and ensure it truly reflects your wishes

1. The $2 Million Exemption

In Massachusetts, estate tax applies to estates valued over $2 million. If your estate is worth less than that, no state estate tax is owed.

For estates that exceed $2 million, only the amount over the threshold is taxed. This change has made the law far less punitive than in the past, when crossing the limit meant the entire estate was taxed..

2. Graduated Tax Rates

Massachusetts uses graduated tax rates for estates over $2 million. The rates start just above 7% and can reach as high as 16% for very large estates. This means the tax rate increases as the taxable portion of your estate grows.

That is why we take the time to create smart strategies that help make sure this is not an issue for you or your family.

3. Out-of-State Property Counts

If you own property outside of Massachusetts, it is still included in your total estate value when determining whether you exceed the $2 million threshold. However, the estate tax you owe is prorated so Massachusetts only taxes the portion of your estate located within the state.

5. Why Taxes Matter for Estate Planning

The updated estate tax laws mean many people now have more flexibility, but they also highlight the importance of regular plan reviews.

Estate plans created under the old $1 million exemption may no longer be optimized for today’s rules. Strategies such as establishing trusts, making lifetime gifts, and adjusting how assets are titled can help reduce or eliminate tax exposure.

Stress free family having a delectable meal

Protect Your Legacy in 2025 and Beyond

Avoiding unnecessary estate tax is not just about saving money — it is about ensuring your loved ones receive the inheritance you intended.

At Murray Law Firm, P.C., we help Massachusetts families create tailored estate plans that protect assets, reduce taxes, and provide peace of mind. Whether your estate is just over the threshold or significantly larger, we can help you take the right steps today to protect your family’s future.

📞 Call us today to schedule your confidential estate planning consultation and make sure your plan is ready for 2025 and beyond.

A Note on Tax Advice

While we are not tax professionals, we work closely with trusted CPAs and tax advisors to ensure your estate plan is structured in the most beneficial way possible. This collaboration allows us to align your legal strategy with sound tax planning so you can feel confident your legacy is protected from every angle. This information is for general purposes only and should not be considered tax advice.