Is There Inheritance Tax in Massachusetts?
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Massachusetts does not have inheritance tax. Inheritance tax is based on the laws of the state where the person leaving the inheritance resides at the time of their death.
This means that if you inherit money or assets from someone who lived in Massachusetts at the time of their death, you will not have to pay taxes on those amounts. It also means that if you inherit from someone who lives in a state that does have inheritance tax, you may have to pay taxes in that state on your inheritance even though you live in Massachusetts. If you are planning your estate in Massachusetts, however, you should know that Massachusetts does have an estate tax, which is a tax on the value of the assets you hold at your death. People with $1million or more in assets will have taxes owed by their estate. When considering the $1 million threshold, you should know that this includes assets that do not pass through your will, like jointly owned real estate, life insurance proceeds, and retirement or other investment accounts with beneficiary designations. Learn more here about inheritance taxes. |
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