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H 3270

An Act relative to the Massachusetts estate tax code

194th Legislature (2025-2026) Introduced by Marcus Vaughn

Bill H 3270 updates Massachusetts estate tax rules, setting a $2.75M exclusion and tiered rates, impacting residents and non-residents starting January 1, 2024.

Hearing rescheduled to 11/18/2025 from 10:00 AM-11:00 AM in B-1 and Virtual Hearing updated to New End Time
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Bill Summary · H 3270

Summary of Bill H 3270: An Act Relative to the Massachusetts Estate Tax Code

Purpose and Intent

Bill H 3270 aims to amend the Massachusetts estate tax code to update the definitions and tax structures related to estate transfers. The primary goal is to adjust the estate tax framework to reflect current economic conditions and to ensure that the estate tax system is fair and equitable for residents of Massachusetts.

Key Provisions

The bill proposes several significant changes to the existing estate tax code:

  1. Definition Updates:

    • The bill revises the definitions of key terms such as "Applicable exclusion amount," "Basic exclusion amount," and "Massachusetts gross estate."
    • The Basic exclusion amount is set at $2,750,000, with provisions for annual adjustments based on the Consumer Price Index (CPI).

  2. Tax Imposition:

    • A tax will be imposed on the transfer of estates for individuals who die on or after January 1, 2024.
    • Estates of non-residents with real or tangible personal property in Massachusetts will also be subject to this tax.

  3. Tax Calculation:

    • The tax will be calculated based on the Massachusetts taxable estate using a tiered structure:
      • 10% for estates valued up to $5,000,000.
      • 11% for estates between $5,000,000 and $10,000,000.
      • 12% for estates between $10,000,000 and $20,000,000.
      • 13% for estates exceeding $20,000,000.

  4. Principal Residence Exclusion:

    • The principal residence of a deceased individual who was a resident of Massachusetts may be excluded from the gross estate if certain conditions are met, including ownership and usage criteria.

Affected Parties

  • Residents of Massachusetts: Individuals who die on or after January 1, 2024, will be directly impacted by the new tax provisions.
  • Non-residents: Those who own real or tangible personal property in Massachusetts at the time of their death will also be subject to the estate tax.
  • Executors of Estates: Executors will need to navigate the new definitions and tax calculations when filing estate tax returns.

Procedural Aspects

  • The bill was introduced on February 27, 2025, and has been referred to the committee on Revenue.
  • A hearing was initially scheduled for November 7, 2025, but has since been rescheduled to November 18, 2025, from 10:00 AM to 1:00 PM.

Related Legislation

  • This bill is related to House Docket No. 87, which was filed earlier and addresses similar matters concerning the estate tax code.

Conclusion

Bill H 3270 represents a significant update to the Massachusetts estate tax code, aiming to modernize tax definitions and structures while ensuring that the estate tax system remains equitable for both residents and non-residents. The proposed changes will require careful consideration by estate executors and may have substantial implications for estate planning in Massachusetts.

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

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