Which States Have an Estate Tax?

map of united states showing which states have estate or inheritance tax

In addition to the federal estate tax, 17 jurisdictions impose their own estate tax or inheritance tax. Maryland is the only state that has both an estate and an inheritance tax.

Estate taxes are paid by the decedent's estate before assets are distributed. Unless specified otherwise in the will or other estate planning instrument, inheritance taxes are paid by the individual receiving the gift.

Connecticut

For estates of decedents dying in calendar year 2022, Connecticut imposes a state estate tax on Connecticut Taxable Estates greater than $9.1 million in value according to the below chart.

CT Estate Tax Amounts
Amount of CT Taxable Estate Rate of Tax
Less than $9,100,000 0%
Greater than $9,100,000 and less than $10,100,000 11.6% of the amount greater than $9,100,000
Greater than $10,100,000 $116,000 plus 12% of the excess greater than $10,100,000

For the last several years, Connecticut has gradually raised its exemption threshold each year and is currently set to match the federal basic exclusion amount beginning on January 1, 2023. Decedents dying on or after January 1, 2023 will only pay Connecticut estate tax if the value of their Connecticut Taxable estate exceeds the federal basic exclusion amount. Such estates will pay estate tax of 12% of any excess over the federal basic exclusion amount.

For more information on the Connecticut Estate Tax, reference Chapter 217 of the Connecticut General Statutes and the Connecticut Department of Revenue Gift and Estate Tax Forms.

District of Columbia

The District of Columbia imposes a state estate tax based on a graduating scale beginning with Taxable Estates greater than $4,000,000 in value.

Unified Rate Schedule | DC Estate Tax
Taxable Amount Over
Column A
Taxable Amount Not Over
Column B
Base Tax Amount
Column C
Tax Rate on Excess Over Column A
Column D
$4,000,000 $5,000,000 $0 11.2%
$5,000,000 $6,000,000 $112,000 12.0%
$6,000,000 $7,000,000 $232,000 12.8%
$7,000,000 $8,000,000 $360,000 13.6%
$8,000,000 $9,000,000 $496,000 14.4%
$9,000,000 $10,000,000 $640,000 15.2%
$10,000,000 --- $792,000 16.0%

From 2022 onward, the $4,000,000 lower exemption amount is scheduled to increase annually based on a cost of living adjustment.

For more information on the District of Columbia Estate Tax, reference 47-3701 to 47-3723 of the Code of the District of Columbia and Form D-76 Estate Tax Instructions.

Iowa

Iowa imposes a graduated inheritance tax on all gifts from estates greater than $25,000 in value. The rates vary based on the relationship of the person or entity receiving the gift, with the highest variable rate topping out at 15%.

In 2021, Iowa passed legislation to gradually phase out its inheritance tax by the beginning of 2025. For each year 2021, 2022, 2023, and 2024, the applicable inheritance tax is reduced by 20% from the prior year. For deaths occurring on or after January 1, 2025, no inheritance tax will be imposed.

For more information on the Iowa Inheritance Tax, reference Section 450.10 of the Iowa Code and the Iowa Department of Revenue inheritance tax forms.

Illinois

Illinois imposes an estate tax on all estates in excess of $4,000,000. The Illinois estate tax rate currently ranges from 0.8% to 16.0%, depending on the size of the estate, and is based on an interrelated calculation. The Office of the Illinois Attorney General offers an Illinois Estate Tax Calculator to more easily compute the Illinois estate tax due.

For more information on the Illinois Estate Tax, reference the Illinois Estate and Generation-Skipping Transfer Tax Act (35 ILCS 405) and the Office of the Illinois Attorney General's Estate Tax Publications.

Kentucky

Kentucky imposes an inheritance tax. The amount of the inheritance tax depends on the relationship of the beneficiary to the deceased person and the value of the property. Beneficiaries are classified into three classes:

  1. Class A: surviving spouse or parent, child, grandchild, brother, or sister
  2. Class B: nephew or niece (full or half), daughter-in-law, son-in-law, aunt, uncle, or great-grandchild
  3. Class C: all other individuals and non-exempt institutions

Generally, the closer the relationship of the beneficiary to the deceased person, the greater the exemption level and the smaller the tax rate. Beneficiaries belonging to Class A are exempt from paying inheritance tax. Variable tax rates for beneficiaries belonging to Class B and C range from 4% to 16%, depending on the class and the amount of the gift. Consult the Kentucky Department of Revenue Inheritance Tax Table found in the Guide to Kentucky Inheritance and Estate Taxes for the full rate table.

All property belonging to a resident of Kentucky is subject to the tax, except for real estate located in another state. Also, real estate and personal property located in Kentucky and owned by a nonresident is subject to the inheritance tax.

Kentucky offers a 5% early payment discount for inheritance taxes paid within 9 months of the deceased person's death.

Maine

Maine imposes an estate tax based on the value of the Maine taxable estate. The Maine taxable estate is equal to the federal taxable estate plus taxable gifts made during the one-year period ending on the date of the decedent's death and the value of Maine elective property.

Maine taxable estates less than the Maine annual exclusion amount are not subject to Maine estate tax. The Maine annual exclusion amount increases based on a cost of living adjustment. The table below sets forth the applicable rates and exclusion amounts for 2021.

Unified Rate Schedule | ME Estate Tax
Taxable Amount Over
Column A
Taxable Amount Not Over
Column B
Base Tax Amount
Column C
Tax Rate on Excess Over Column A
Column D
$5,870,000 $8,870,000 $0 8%
$8,870,000 $11,870,000 $240,000 10%
$11,870,000 --- $540,000 12%

For more information on the Maine estate tax and tables for prior years, reference the Maine Revenue Services Estate Tax Form 706ME instructions and Maine Estate Tax FAQ page.

Maryland

Maryland is the only state that imposes both an estate tax and an inheritance tax.

Maryland taxes Maryland taxable estates exceeding $5,000,000 or property located in Maryland owned by non-residents that exceeds $5,000,000 at a rate of 16%, less a credit for state death taxes.

The inheritance tax rate varies depending on the class of beneficiary:

  • 0% (exempt): Property passing to a child or other lineal descendant or a spouse of such person, spouse, parent, grandparent, stepchild or stepparent, or siblings
  • 10%: All other individuals

Any Maryland inheritance tax paid is deducted from the Maryland gross estate tax liability so that the Maryland estate tax does not become a double tax.

More information on the Maryland Estate and Inheritance Tax is available on the website of the Comptroller of Maryland and the Maryland Estate and Fiduciary Forms.

Massachusetts

Massachusetts imposes an estate tax on all estates greater than $1,000,000.

The estate tax payable to Massachusetts is based on the pre-2000 system for the federal estate tax whereby the IRS allowed a certain maximum state estate tax deduction from the federal estate taxes due. This state estate tax deduction has since been phased out from the federal calculations, but the concept is still used in Massachusetts's own state estate tax calculations.

The state estate tax payable to Massachusetts is the lesser of (a) the amount of the credit for state death taxes under the pre-2000 system and (b) the amount of the federal estate tax after reduction by the amount of the unified credit.

For more information on the Massachusetts Estate Tax and to locate the latest M-706 Estate Tax Return forms, consult the Massachusetts Estate Tax page and the Guide to Massachusetts Estate Taxes, which also features step-by-step examples calculating the Massachusetts estate tax.

Minnesota

Minnesota imposes an estate tax on estates greater than $3,000,000. The Minnesota Estate tax is based on a graduated rate table, where the Minnesota Taxable Estate is equal to the Federal tentative Taxable Estate plus certain Minnesota state-specific adjustments, less the $3,000,000 Minnesota estate tax exclusion.

Unified Rate Schedule | MN Estate Tax
Taxable Amount Over
Column A
Taxable Amount Not Over
Column B
Base Tax Amount
Column C
Tax Rate on Excess Over Column A
Column D
$0 $7,100,000 $0 13.0%
$7,100,000 $8,100,000 $923,000 13.6%
$8,100,000 $9,100,000 $1,059,000 14.4%
$9,100,000 $10,100,000 $1,203,000 15.2%
$10,100,000 --- 1,355,000 16.0%

Although Minnesota and non-Minnesota property is included in the calculation of the Minnesota Taxable Estate, the Minnesota Estate Tax is paid only on the portion of the federal gross estate with Minnesota situs (i.e., located in Minnesota).

Minnesota offers an estate tax calculator on its Department of Revenue website to assist with calculating the Minnesota Estate Tax due.

Nebraska

Nebraska imposes an inheritance tax. The amount of the inheritance tax depends on the relationship of the beneficiary to the deceased person and the value of the property. Beneficiaries are classified into four classes (N.R.S. Sections 77-2004 to 77-2006):

  1. Spouse (0% tax): surviving spouse
  2. Immediate Relatives (1% in excess of $40,000): surviving parent, child, grandparent, grandchild, or sibling
  3. Remote Relatives (13% in excess of $15,000): nephew, niece, aunt, or uncle, or the spouse of such person
  4. Other Transfers (18% in excess of $10,000): all other individuals and non-exempt institutions

New Jersey

New Jersey imposes an inheritance tax ranging from 11% to 16% on the transfer of real and personal property with a value of $500 or more to certain beneficiaries. The amount of tax depends on several factors:

  • who the beneficiaries are and how they are related to the decedent;
  • the date of death value of the assets (and debts) that the decedent owned;
  • what kind of assets the decedent owned;
  • whether the decedent lived in New Jersey or another state

Where the beneficiaries lived is not a factor.

The New Jersey Transfer Inheritance Tax recognizes four beneficiary classes**:

  1. Class A: parent, grandparents, spouse/civil union partner, domestic partner, child, or grandchild
  2. Class C: sibling, civil union partner, or a son-in-law or daughter-in-law (including by civil union)
  3. Class D: every other transferee, distributee, or beneficiary not included in Classes A, C, or E
  4. Class E: certain charitable and exempt institutions, provided those institutions are located in New Jersey or in another state that recognizes equal and like exemptions for gifts of property for the benefit of such similar institutions in New Jersey. The fact that a beneficiary may be considered a "nonprofit" by the IRS does not necessarily mean that it qualifies for an exemption as a Class E beneficiary.

** Class B was eliminated by statute in July 1963.

Class A and Class E beneficiaries are exempt from the Transfer Inheritance Tax (i.e., 0% rate). Class C and Class D transferees pay rates based on a graduated scale that tops out at 16%. The New Jersey Division of Taxation publishes the most recent inheritance tax tables for Class C and Class D beneficiaries.

New York

New York imposes an estate tax. Residents and non-residents holding real or tangible property located in New York state must file a New York State estate tax return if the value of their federal gross estate plus includible gifts exceeds the New York state basic exclusion amount.

For 2022, the basic exclusion amount is $6,110,000. Variable rates on the amount in excess of the basic exclusion amount start at 3.06% and top out at 16.0%.

The New York Department of Taxation and Finance publishes the most recent New York state estate tax rates and basic exclusion amounts on its website. Rate tables are in the latest New York form ET-706.

Oregon

Oregon imposes an estate tax on Oregon Taxable Estates greater than $1,000,000. The estate tax is based on a graduated system with a variable rate that starts at 10% and tops out at 16%.

Unified Rate Schedule | OR Estate Tax
Taxable Amount Over
Column A
Taxable Amount Not Over
Column B
Base Tax Amount
Column C
Tax Rate on Excess Over Column A
Column D
$1,000,000 $1,500,000 $0 10.00%
$1,500,000 $2,500,000 $50,000 10.25%
$2,500,000 $3,500,000 $152,500 10.50%
$3,500,000 $4,500,000 $257,500 11.00%
$5,500,000 $6,500,000 $482,500 12.00%
$6,500,000 $7,500,000 $602,500 13.00%
$7,500,000 $8,500,000 $732,500 14.00%
$8,500,000 $9,500,000 $872,500 15.00%
$9,500,000 --- $1,022,500 16.00%

For estates with property inside and outside of Oregon, a ratio is applied to apportion the value of the property subject to Oregon's estate tax. For Oregon residents, the ratio is the sum of Oregon real property, Oregon tangible personal property, and intangible property vs. the total value of the decedent's gross estate. For non-residents, the ratio is the sum of Oregon real property and Oregon tangible personal property vs. the total value of the decedent's gross estate.

The Oregon Department of Revenue publishes the most recent OR-706 estate tax forms and instructions on its website.

Rhode Island

Rhode Island imposes an estate tax on estates with Taxable Estates greater than $1,596,156 (2021).

Unlike most other states that impose estate tax, all estates in Rhode Island must file a state estate tax return. Estates of decedents with gross estates less than or equal to $1,500,000 must file the RI-100 stating that no state estate tax is due. Estates of decedents with gross estates greater than $1,500,000 are required to file the RI-100A.

The Rhode Island estate tax is based on a rather complicated system of credits used to determine the exact amount owed. If you are the Executor of an estate in Rhode Island subject to the estate tax, you'll likely want to hire a CPA to help prepare the Rhode Island estate tax return, which can be charged as an administration expense against the estate.

The Rhode Island Division of Taxation publishes the latest rates and information on the Rhode Island Estate tax on its website.

Vermont

Vermont imposes an estate tax on taxable estates exceeding $5,000,000 (2021). The Vermont Taxable Estate is equal to the federal tentative taxable estate plus federal taxable gifts made within two years of death and less any foreign country death taxes paid.

Vermont has a flat tax rate of 16% on the portion of the Vermont Taxable Estate that exceeds the Vermont basic exclusion amount, which is $5,000,000 in 2021. The tax due is apportioned based on the portion of the decedent's property located in Vermont. This means that, notwithstanding credits for a qualifying farmer estate, the estate of a Vermont resident who passes away with all property located in Vermont with a Vermont Taxable Estate of $6,000,000 would pay $160,000 in state estate taxes ($1,000,000 * 16%).

The Vermont Department of Taxes publishes the latest Vermont basic exclusion amount, estate tax rate, and estate tax forms on its website.

Washington

Washington imposes an estate tax on all estates greater than the Washington estate tax basic exclusion amount, which is $2,193,000 in 2022. The estate tax is based on a graduated system with a variable rate that starts at 10% and tops out at 20%. The Washington Estate Taxable Amount is the amount after all allowable deductions, including the applicable basic exclusion amount.

Unified Rate Schedule | WA Estate Tax
Taxable Amount Over
Column A
Taxable Amount Not Over
Column B
Base Tax Amount
Column C
Tax Rate on Excess Over Column A
Column D
$0 $1,000,000 $0 10.0%
$1,000,000 $2,000,000 $100,000 14.0%
$2,000,000 $3,000,000 $240,000 15.0%
$3,000,000 $4,000,000 $390,000 16.0%
$4,000,000 $6,000,000 $550,000 18.0%
$6,000,000 $7,000,000 $910,000 19.0%
$7,000,000 $9,000,000 $1,100,000 19.5%
$9,000,000 --- $1,490,000 20.0%

The Washington Department of Revenue publishes the latest Washington state estate tax tables and filing thresholds on its website.