Do I have To Pay Taxes When I Die?

By Jacob Dressler · May 3, 2023

Hello loyal readers, today I’m answering the question of if you have to pay taxes when you die. I know my readers are straight shooters so instead of fluffing up this blog let’s get to the short answer quick then I’ll go into more detail.

SHORT ANSWER:

In Massachusetts if you die with under $2,000,000 then NO you do not have to pay taxes when you die. If you die with over $2,000,000 then you DO pay taxes.

In Connecticut if you die with less than $12,920,000 then NO you don’t have to pay taxes.If you die with over $12,920,000 then you DO pay taxes.

If you die with anything over those amounts then you have to pay taxes.

LONG ANSWER:

Every state either imposes an estate tax or doesn’t. Florida for example imposes no estate tax which means you can die with any amount of money and not get taxed. CT and MA both impose taxes on any estate worth over $2M (in MA) and under $12.92M (in CT)

Keep in mind that your estate is worth as much as your gross estate. So houses (located in MA or outside), life insurance policies, bank accounts, and 401Ks are all counted in your estate. If all of your assets exceed the estate tax limit then you have to pay taxes.

These are the rates for the MA estate tax

Massachusetts Taxable Estate
More than $2,000,000	But not more than	The tax is
$0	$50,000	5.0% of the taxable estate
$50,000	$100,000	$2,500 plus 7.0% of the excess more than $50,000
$100,000	$200,000	$6,000 plus 9.0% of the excess more than $100,000
$200,000	$400,000	$15,000 plus 10.0% of the excess more than $200,000
$400,000	$600,000	$35,000 plus 11.0% of the excess more than $400,000
$600,000	$800,000	$57,000 plus 12.0% of the excess more than $600,000
$800,000	$1 million	$81,000 plus 13.0% of the excess more than $800,000
$1 million	$2 million	$107,000 plus 14.0% of the excess more than $1 million
$2 million	$4 million	$247,000 plus 15.0% of the excess more than $2 million
$4 million		$547,000 plus 16.0% of the excess more than $4 million

The MA estate tax is a cliff tax which means if you exceed $2,000,000 by even one dollar, the entire $2,000,001 is taxed, not just the extra dollar.

Written by Jacob Dressler. This article is general information and not individual legal advice.

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