State-By-State Estate And Inheritance Tax Rates

As of 2023, if a person who dies leaves behind an estate that exceeds $12.9 million the executor must file a federal estate tax return within 9 months and pay a maximum of 40 percent of any assets over that threshold. For example: If an estate is worth $15 million, $2.1 million is taxed at the federal level. The threshold increases to $13.61 million in 2024.

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, especially if you live in a state with inheritance tax. Some of those states have no exemption threshold and it all depends on who's inheriting what (example: a spouse or child might have a lower tax rate than a cousin or friend).

Check out this nifty map from the Tax Foundation to see the current rates in map form. For those who are fans of lists, see what your state has to offer in terms of estate or inheritance taxes below.

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 $12,920,000 million (Note: In 2023 this was set to match the federal rate...and it did.)

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 20 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 6 percent (no exemption threshold)

Kansas: No estate tax or inheritance tax

Kentucky: The top inheritance tax rate is 16 percent

Louisiana: No estate tax or inheritance tax

Maine: The top estate tax rate is 12 percent (exemption threshold: $6.41 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: $2 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 is 18 percent

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: $6.58 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: $1,733,264)

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: $5 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 20 percent (exemption threshold: $4,528,800)

West Virginia: No estate tax or inheritance tax

Wisconsin: No estate tax or inheritance tax

Wyoming: No estate tax or inheritance tax