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SD 933

An Act relative to the Massachusetts estate tax

194th Legislature (2025-2026)

SD 933 - An Act relative to the Massachusetts estate tax OverviewBill Number: SD 933 Title: An Act relative to the Massachusetts estate tax Status: House concurred Introduced: F

House concurred
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Bill Summary · SD 933

SD 933 - An Act relative to the Massachusetts estate tax

Overview

Bill Number: SD 933
Title: An Act relative to the Massachusetts estate tax
Status: House concurred
Introduced: February 27, 2025

Purpose and Intent

The primary goal of this bill is to reform the Massachusetts estate tax system to provide relief for middle-class families and small business owners, while maintaining the state's ability to generate necessary revenue. The legislation aims to address concerns that the current estate tax structure places an undue burden on individuals passing on modest family wealth or small businesses to their heirs.

Key Provisions

  • Increases the estate tax exemption threshold from the current $1 million to $2 million
  • Reduces the top estate tax rate from 16% to 12% for estates valued between $2 million and $5 million
  • Introduces a new tiered rate structure with lower rates for estates under $5 million
  • Provides an additional $500,000 exemption for family-owned small businesses and farms
  • Allows for the portability of unused exemption amounts between spouses

Affected Parties and Impacts

  • Middle-class families and small business owners will benefit from the higher exemption threshold and lower tax rates, allowing them to pass on more of their wealth to heirs without incurring significant estate tax liabilities.
  • The state government may see a modest reduction in estate tax revenue, but proponents argue that the changes will encourage more wealth to remain in Massachusetts, offsetting some of the lost revenue.
  • Larger estates valued over $5 million will continue to be subject to the state's estate tax, ensuring that the wealthiest individuals contribute their fair share.

Procedural and Timeline Considerations

The bill has passed the state Senate and is currently under consideration in the House of Representatives. If the House concurs with the Senate version, the bill will be sent to the Governor for signature. If signed into law, the new estate tax provisions would take effect for all deaths occurring on or after January 1, 2026.

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

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