New Hampshire Estate Tax vs Massachusetts: Live Free… Then Die Strategically

New Hampshire’s motto is “Live Free or Die.” For taxes, the punchline is: live free, and try not to “die taxable” in Massachusetts. (I know, romantic. Nothing says love like death taxes and domicile tests.)

Here’s the clean breakdown, plus the real-world gotchas for people who live on the border, own property in both states, or want to be very intentional about where they “live free” and where they eventually… you know.

1) Does New Hampshire have an estate tax?

No. New Hampshire does not impose a state-level estate tax (or inheritance tax).

So if you die as a properly domiciled New Hampshire resident, NH is not adding its own state estate tax bill on top of whatever the federal government might do.

2) Massachusetts is the problem child (for estates)

Massachusetts does impose a state estate tax, and the key threshold is:

• $2,000,000 Massachusetts estate tax exemption (for 2026 per the widely used ACTEC state death tax chart, reflecting MA law updates).

Translation: If your taxable estate is over $2M, Massachusetts can get involved. Many estates that are nowhere near the federal estate tax level still trigger Massachusetts estate tax. That’s the whole “surprise, it’s not just for billionaires” vibe.

Federal estate tax is a different beast

Federally, the exemption is much higher: $15M per person in 2026 (and generally up to 40% on amounts above the exemption).

So the common situation is:

• No federal estate tax issue

• But a Massachusetts estate tax issue once you cross $2M

3) The trap: “I moved to NH” (but Massachusetts disagrees)

Here’s the hard truth: your mailing address is not your domicile. Massachusetts cares about where you were actually “at home” in the legal sense when you died.

If you want the “die in NH” plan to work cleanly, you need a real, defensible New Hampshire domicile story:

• NH home is your primary home (not just “the weekend place”)

• NH driver’s license, car registration, voter registration

• Doctors, dentists, banking, and the boring life-stuff moves too

• You spend most of your time in NH, and your calendar doesn’t scream “I’m still in MA”

If you do it halfway, Massachusetts can treat you like you never really left. And they will do it with the cold confidence of a state that has seen every cute trick.

4) The sneaky carve-out: You can die in NH and still owe Massachusetts

Even if you’re a New Hampshire resident when you die, Massachusetts can still tax certain property located in Massachusetts.

Massachusetts law explicitly taxes a nonresident decedent’s Massachusetts-situs real estate and tangible personal property (think: MA house, MA condo, MA cabin, maybe equipment/art/collectibles physically in MA).

So the “move to NH” strategy is strongest when you also address:

• That Massachusetts vacation home

• Any Massachusetts rental property

• Tangible items physically kept in Massachusetts

5) Married couples: Massachusetts planning matters more than people expect

One extra Massachusetts wrinkle: Massachusetts does not offer portability the way the federal system does (meaning you can’t typically “carry over” a deceased spouse’s unused MA exemption automatically).

That’s why you’ll often hear Massachusetts-focused planners talk about trust planning (like credit shelter style structures) to use both spouses’ MA exemptions intentionally.

Also, Massachusetts has long had concepts around a separate state QTIP-style election in its ecosystem, which can matter in married planning.

6) A practical “move (and die) in NH” checklist

If your goal is “I want New Hampshire residency to actually stick when it counts,” the boring moves are the power moves:

1. Make NH your real home base (not just “where I’d like to be taxed”).

2. Move the paper trail: license, registrations, voter status, mailing, banking, insurance, primary care.

3. Reduce MA hooks: especially MA real estate or leaving valuable tangible property parked in MA.

4. Update estate docs: wills, trusts, POAs, health care proxies, beneficiary designations, and the “where do I live” language.

5. Document intent: keep a simple file that tells the story (closing statements, utility bills, calendar/time, community ties). This is the stuff that saves heirs from a multi-year audit-flavored grief spiral.

Quick example (because numbers make it real)

• You have a $3.0M net worth (including your house, which can add up quickly!).

• You die a Massachusetts resident: MA estate tax is potentially in play because you’re over $2M.

• You die a New Hampshire resident with no MA real estate: NH doesn’t add a state estate tax.

• You die a New Hampshire resident but still own a Cape house: MA can still tax the MA-situs property because you’re a nonresident with MA real/tangible property.

One more NH perk (not estate tax, but people mix it in)

New Hampshire also eliminated its old Interest and Dividends Tax for tax periods beginning on or after January 1, 2025. That’s not estate tax, but it’s part of why NH is attractive in the first place.

The “Live Free or Die” pun you came for

New Hampshire: Live Free or Die.
Massachusetts: Live… File… Pay… Then Die (and they still want a form).

You want to be the person who lives free, and whose heirs don’t discover a surprise Massachusetts estate tax problem while they’re already having the worst month of their lives. That’s the real romance right there. (I’m blushing. You’re welcome.)

Educational only, not legal advice. Estate planning is one of those areas where small facts change outcomes fast. I am not a lawyer, nor do I play one on TV.

Not sure whether Massachusetts still has a grip on your tax story? I’ll help you understand the tax implications and coordinate with your legal team as needed.

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