How Does Massachusetts Tax Estates of Non-Residents with In State Real Estate?

 In Estate and Gift Taxes


I have been a Florida resident for four years. My primary residence is in Florida, and I am out of Massachusetts for more than seven months a year. I still own three houses in Massachusetts with a combined value of about $3 million and my total estate is about $9 million. What is the approximate Massachusetts estate tax due on my passing?


You ask a good question because Massachusetts still has an estate tax and it taxes the estates of non-residents who leave real estate in Massachusetts. It does so proportionately. Here’s how it works:

About a third of your estate is in Massachusetts. The Massachusetts estate tax would be about $900,000 if you were a resident of the Commonwealth at your death. So, with a third of your estate being in Massachusetts, the tax would be a third of this amount, or about $300,000.

Showing 2 comments
  • James Hurley

    If the real estate wants to be held in a realty trust or a limited partnership or an LLC how does that affect the include ability of the real estate for Massachusetts estate tax purposes.

      • Harry Margolis

        There’s no case law directly on point, but the weight of opinion is that a realty trust has no effect — the property is still taxable — but a limited liability corporation or partnership should work because they turn the ownership interest into personal property which is not taxable in Massachusetts if in the estate of a non-resident decedent.

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