State Fiduciary Income Tax

Massachusetts Form 2: The Massachusetts Fiduciary Income Tax Return

Estates and trusts connected to Massachusetts file Form 2 with DOR — on top of, not instead of, the federal Form 1041. Here is who must file, the deadlines, the rates, and the Massachusetts-specific rules that differ from federal.

E-File the Federal 1041Federal Form 1041 Guide

Quick Answer

Form 2 is Massachusetts’s fiduciary income tax return, filed with DOR. Due: The 15th day of the 4th month after the year ends — April 15 for calendar-year filers. Tax: Most income at the 5% rate; short-term capital gains at a higher rate, and the 4% surtax applies above the annually indexed million-dollar threshold. It is filed in addition to the federal Form 1041 — prepare the federal return first, then the state return that builds on it.

Form 2 at a glance

ReturnForm 2 — Massachusetts Fiduciary Income Tax Return
Filed withMassachusetts Department of Revenue
Who must fileEvery executor, trustee, or other fiduciary of an estate or trust subject to Massachusetts jurisdiction that received income over $100 taxable at the entity level or to beneficiaries.
Due dateThe 15th day of the 4th month after the year ends — April 15 for calendar-year filers.
ExtensionAutomatic 6 months when at least 80% of the tax due is paid by the original date; Form M-8736 (or MassTaxConnect) carries any extension payment.
Tax rateMost income at the 5% rate; short-term capital gains at a higher rate, and the 4% surtax applies above the annually indexed million-dollar threshold.
E-filingForm 2 e-files through the Fed/State MeF program; DOR maintains e-file mandates for many filers.

What makes Massachusetts different

  • Massachusetts has the lowest filing trigger of any Tier-1 state: $100 of taxable income obligates a Form 2 — a sixth of the federal $600 threshold.
  • The "Form 2" name is famously ambiguous (Wisconsin’s fiduciary return shares it), and Massachusetts layers class-based rates: 5% on most income, more on short-term gains, plus the millionaire surtax when the estate or trust clears the indexed threshold.

The federal return comes first

Form 2 does not replace the federal filing — an estate or trust that meets the federal thresholds ($600 of gross income, any taxable income for a trust, or a nonresident alien beneficiary) files the federal Form 1041 with the IRS and then the Massachusetts return with DOR, which generally starts from the federal figures. The practical workflow: finish the federal 1041 and its Schedule K-1s, then carry the numbers into Form 2. Our federal Form 1041 guide covers the thresholds, deadlines, and elections, and the Schedule K-1 guide explains what beneficiaries do with their share.

Start with the federal Form 1041

Prepare and e-file the federal fiduciary return through the IRS MeF system with an electronic acknowledgment — the foundation the Massachusetts return builds on.

E-File the Federal 1041

Massachusetts fiduciary tax FAQs

Who must file Massachusetts Form 2?
Every executor, trustee, or other fiduciary of an estate or trust subject to Massachusetts jurisdiction that received income over $100 taxable at the entity level or to beneficiaries.
When is Form 2 due?
The 15th day of the 4th month after the year ends — April 15 for calendar-year filers. Extension: Automatic 6 months when at least 80% of the tax due is paid by the original date; Form M-8736 (or MassTaxConnect) carries any extension payment.
What is the Massachusetts fiduciary tax rate?
Most income at the 5% rate; short-term capital gains at a higher rate, and the 4% surtax applies above the annually indexed million-dollar threshold. Rates and thresholds change — verify against the current Form 2 instructions from Massachusetts Department of Revenue before computing.
Do I still file the federal Form 1041 if I file Form 2?
Yes — they are separate obligations. The federal Form 1041 goes to the IRS under the federal $600 gross-income (or any-taxable-income) thresholds, and Form 2 goes to DOR under Massachusetts's own rules. Most fiduciaries prepare the federal return first, since the state return typically starts from federal amounts.
Does the Massachusetts 4% surtax apply to trusts and estates?
Yes — the surtax on taxable income above the annually indexed threshold (the "millionaires tax") applies to Form 2 filers, not just individuals. A trust with a large capital-gain year can cross the threshold and owe 9% on the excess. The threshold indexes annually, so check the current Form 2 instructions.

Other state fiduciary guides

Maryland Form 504 · California Form 541 · New York Form IT-205 · Pennsylvania Form PA-41 · Illinois Form IL-1041 · Ohio Form IT 1041 · all states

Disclaimer: State filing thresholds, rates, and extension rules change — verify current requirements in the Form 2 instructions published by Massachusetts Department of Revenue before filing. This page is general information, not tax advice. TaxFilingCenter is an IRS-authorized e-file provider for federal returns and does not provide legal or tax advice.