State-By-State Estate And Inheritance Tax Rates

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dollar map of united states

Some states have inheritance tax, some have estate tax, some have both, some have none at all. See where your state shows up on the board.

As of 2019, if a person who dies leaves behind an estate that exceeds $11.4 million. the Executor must file a federal estate tax return within 9 months and pay 40 percent of any assets over that threshold. For example: If an estate is worth $15 million, $3.6 million is taxed at 40 percent.

While the tax rate has remained the same over the years, back in 2017 the exclusion amount was $5.49 million before doubling to $11.2 million in 2018.

Now that the federal threshold is much higher, what does this mean for you? Probably nothing. If you have this much money you probably already created a Trust to protect it (or at least you should have...or need to right now). If you don't then it's a fun fact to bring up at your next party, assuming the other partygoers are interested in talking about estate and inheritance taxes. (And who doesn't?)

But the rates, or the very existence, of estate or inheritance tax within specific states varies wildly. Here's the difference between estate and inheritance tax:

  • Estate taxes are based on the value of the deceased's property, only apply if the estate exceeds the exemption, and are paid before the money is distributed to heirs.
  • Inheritance taxes are paid by the person receiving the property and vary depending on how the heir was related to the deceased (example: spouse, child, cousin, etc...)

Only 12 states (and the District of Columbia) possess estate tax, and five have an inheritance tax. One state boasts both. (Way to go, Maryland.) If you live in one of these states, it's in your best interest to speak with an estate attorney or financial advisor to understand the scope of the taxes and what you can do to mitigate them if they apply to you (the inheritance one might, considering some have no exemption threshold). Click the nifty map below to find the current rates:

estate tax map

Alabama: No estate tax or inheritance tax

Alaska: No estate tax or inheritance tax

Arizona: No estate tax or inheritance tax

Arkansas: No estate tax or inheritance tax

California: No estate tax or inheritance tax

Colorado: No estate tax or inheritance tax

Connecticut: The top estate tax rate is 12 percent and is capped at $15 million (exemption threshold: $3.6 million; the exemption amount will rise to $5.1 million in 2020, $7.1 million in 2021, $9.1 million in 2022, and is scheduled to match the federal amount in 2023.)

Delaware: No estate tax or inheritance tax

Florida: No estate tax or inheritance tax

Georgia: No estate tax or inheritance tax

Hawaii: The top estate tax rate is 16 percent (exemption threshold: $5.49 million)

Idaho: No estate tax or inheritance tax

Illinois: The top estate tax rate is 16 percent (exemption threshold: $4 million)

Indiana: No estate tax or inheritance tax

Iowa: The top inheritance tax rate is 15 percent (no exemption threshold)

Kansas: No estate tax or inheritance tax

Kentucky: The top inheritance tax rate is 16 percent (exemption threshold for Class C beneficiaries: $500; exemption threshold for Class B beneficiaries: $1,000; Class A beneficiaries, which is the majority, pay no inheritance tax)

Louisiana: No estate tax or inheritance tax

Maine: The top estate tax rate is 12 percent (exemption threshold: $5.6 million)

Maryland: The top estate tax rate is 16 percent (exemption threshold: $5 million); The top inheritance tax rate is 10 percent (no exemption threshold)

Massachusetts: The top estate tax rate is 16 percent (exemption threshold: $1 million)

Michigan: No estate tax or inheritance tax

Minnesota: The top estate tax rate is 16 percent (exemption threshold: $2.7 million; this increases to $3 million in 2020)

Mississippi: No estate tax or inheritance tax

Missouri: No estate tax or inheritance tax

Montana: No estate tax or inheritance tax

Nebraska: The top inheritance tax rate is18 percent (exemption threshold: $10,000)

Nevada: No estate tax or inheritance tax

New Hampshire: No estate tax or inheritance tax

New Jersey: The top inheritance tax rate is 16 percent (no exemption threshold)

New Mexico: No estate tax or inheritance tax

New York: The top estate tax rate is 16 percent (exemption threshold: $5.749 million)

North Carolina: No estate tax or inheritance tax

North Dakota: No estate tax or inheritance tax

Ohio: No estate tax or inheritance tax

Oklahoma: No estate tax or inheritance tax

Oregon: The top estate tax rate is 16 percent (exemption threshold: $1 million)

Pennsylvania: The top inheritance tax rate is 15 percent (no exemption threshold)

Rhode Island: The top estate tax rate is 16 percent (exemption threshold: $1,561,719)

South Carolina: No estate tax or inheritance tax

South Dakota: No estate tax or inheritance tax

Tennessee: No estate tax or inheritance tax

Texas: No estate tax or inheritance tax

Utah: No estate tax or inheritance tax

Vermont: The top estate tax rate is 16 percent (exemption threshold: $2.75 million)

Virginia: No estate tax or inheritance tax

Washington: The top estate tax rate is 20 percent (exemption threshold: $2.193 million)

Washington DC (District of Columbia): The top estate tax rate is 16 percent (exemption threshold: $5.6 million)

West Virginia: No estate tax or inheritance tax

Wisconsin: No estate tax or inheritance tax

Wyoming: No estate tax or inheritance tax

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