What estate size requires a Massachusetts estate tax return?
A gross estate over $2,000,000 for deaths on or after January 1, 2023, filed on Form M-706 with the Department of Revenue; the threshold was $1,000,000 for deaths from 2016 through 2022. Because the federal exemption is far higher, many Massachusetts estates file only the state return, and it still demands supportable fair market values, per the Massachusetts Estate Tax Guide.
As of what date is personal property valued for the M-706?
The date of death, under G.L. c. 65C section 5(a), with the six-months-later alternate valuation available only if it was properly elected for federal estate tax purposes. Massachusetts has no independent state alternate valuation election, despite claims to the contrary, so the federal election drives the date for art, collectibles, and other volatile assets.
Did the 2023 change eliminate the Massachusetts estate tax cliff?
Yes. The law added a credit of $99,600, effectively exempting the first $2 million, so estates just over the threshold are no longer taxed the way the old cliff structure taxed them. Valuation still matters at the margin, since defensible personal property values determine whether an estate crosses the filing line at all.
Does property located outside Massachusetts enter the calculation?
For residents, real estate and tangible personal property located outside Massachusetts are excluded from the Massachusetts base; for nonresidents, tangible property physically in Massachusetts is reached. Where vehicles, boats, art, and equipment were physically situated at death is a fact worth documenting alongside their values.
Will the DOR accept assessed values in place of appraisals?
No. Department guidance states it cannot accept local assessed values as estate tax values and must value property at fair market value as of death. The same fair market value standard runs through the statute and the estate tax guide, which is why we prepare date-of-death appraisals rather than repackaging assessment data.