Bill

S 2088

An Act relative to modernizing the estate tax

194th Legislature (2025-2026) Introduced by Peter Durant and 1 co-sponsor

Bill S 2088 modernizes Massachusetts estate tax, exempting estates under $5M, reducing taxes for out-of-state property, and adjusting thresholds annually for fairness.

Reporting date extended to Thursday June 25, 2026

WeVote Research Nonpartisan

Bill Summary · S 2088

Summary of Bill S 2088: An Act Relative to Modernizing the Estate Tax

Purpose and Intent

Bill S 2088 aims to modernize the estate tax framework in Massachusetts. The primary goal is to update the tax structure to reflect current economic conditions and provide relief to smaller estates, thereby ensuring a fairer taxation process for residents who pass away.

Key Provisions

The bill proposes several significant changes to the existing estate tax law as outlined in Chapter 65C of the General Laws:

Tax Imposition:
- A tax will be imposed on the transfer of the estate of individuals who die on or after January 1, 1997, provided they were residents of Massachusetts at the time of death.
- The tax amount will be based on the credit for state death taxes allowable under federal law as of December 31, 2000.
Reduction for Out-of-State Property:
- If a decedent's estate includes real or tangible personal property located outside Massachusetts, the tax will be reduced proportionally based on the value of that property relative to the total federal gross estate.
Exemption Threshold:
- For decedents dying on or after July 1, 2022, estates valued at $5,000,000 or less will not be subject to the estate tax.
- For estates of decedents dying on or after July 1, 2024, the credit will be calculated after reducing the federal taxable estate by $5,000,000.
Annual Adjustments:
- The exemption threshold for affected estates will be adjusted annually based on changes in salaries and wages in Massachusetts, as determined by the Bureau of Economic Analysis.

Affected Parties

Decedents and Their Estates: The bill primarily affects the estates of individuals who die on or after the specified dates, particularly those with estates valued around the $5 million threshold.
Heirs and Beneficiaries: Individuals inheriting from estates that fall under the new provisions may benefit from reduced tax liabilities.
Massachusetts Residents: The changes aim to provide tax relief to Massachusetts residents, particularly those with smaller estates.

Procedural Aspects

Introduced: February 27, 2025
Hearing Scheduled: November 18, 2025, from 10:00 AM to 1:00 PM in A-1
Legislative Actions:
- Referred to the committee on Revenue on the same day it was introduced.
- The House concurred with the bill on February 27, 2025.

Related Legislation

This bill is a replacement for Senate Bill No. 1946 from the previous session (2023-2024).

By modernizing the estate tax, Bill S 2088 seeks to create a more equitable tax system that reflects contemporary economic realities while providing relief to smaller estates in Massachusetts.

Compiled from official sources — confirm details with the bill’s official record.