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.

According to the Organization for Economic Co-operation and Development (OECD), the United States has the fourth highest estate or inheritance tax rate in the world (40 percent), behind Japan (55 percent), South Korea (50 percent), and France (45 percent). As of 2017, if an estate exceeds $5.49 million, the Executor of an estate must file a federal estate tax return within nine months of a person’s death.

But the rates, or for that matter 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 14 states (and the District of Columbia) possess estate tax, and six have an inheritance tax. Two states boast both. 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. Here’s the complete list as reported by TaxFoundation.org (along with their nifty map):

estate tax inheritance map 2017

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: 7.2-12 percent estate tax rate (exemption threshold: $2 million)

Delaware: 0.8-16 percent estate tax rate (exemption threshold: $5.49 million)

Florida: No estate tax or inheritance tax

Georgia: No estate tax or inheritance tax

Hawaii: 10-15.7 percent estate tax rate (exemption threshold: $5.49 million)

Idaho: No estate tax or inheritance tax

Illinois: 0.8-16 percent estate tax rate (exemption threshold: $4 million)

Indiana: No estate tax or inheritance tax

Iowa: 0-15 percent inheritance tax rate

Kansas: No estate tax or inheritance tax

Kentucky: 0-16 percent inheritance tax rate

Louisiana: No estate tax or inheritance tax

Maine: 8-12 percent estate tax rate (exemption threshold: $5.49 million)

Maryland: 16 percent estate tax rate (exemption threshold: $3 million); 0-10 percent inheritance tax rate

Massachusetts: 0.8-16 percent estate tax rate (exemption threshold: $1 million)

Michigan: No estate tax or inheritance tax

Minnesota: 10-16 percent estate tax rate (exemption threshold: $1.8 million)

Mississippi: No estate tax or inheritance tax

Missouri: No estate tax or inheritance tax

Montana: No estate tax or inheritance tax

Nebraska: 1-18 percent inheritance tax rate

Nevada: No estate tax or inheritance tax

New Hampshire: No estate tax or inheritance tax

New Jersey: 0.8-16 percent estate tax (exemption threshold: $2 million -- NOTE: This is expected to be phased out by 2018); 0%-16% inheritance tax rate

New Mexico: No estate tax or inheritance tax

New York: 3.06-16 percent estate tax rate (exemption threshold: $4.187 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: 10-16 percent estate tax rate (exemption threshold: $1 million)

Pennsylvania: 0-15 percent inheritance tax rate

Rhode Island: 0.8-16 percent estate tax rate (exemption threshold: $1.515 million)

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: 16 percent estate tax rate (exemption threshold: $2.75 million)

Virginia: No estate tax or inheritance tax

Washington: 10-20 percent estate tax rate (exemption threshold: $2.129 million)

Washington DC (District of Columbia): 8-16 percent estate tax rate (exemption threshold: $2 million)

West Virginia: No estate tax or inheritance tax

Wisconsin: No estate tax or inheritance tax

Wyoming: No estate tax or inheritance tax

[via TaxFoundation.org]

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