Home › Estate Tax Planning › State Estate & Inheritance Taxes
In 2026, 12 states plus Washington, D.C. levy their own estate tax, and 5 states levy an inheritance tax. Maryland is the only state with both. 33 states have neither.
- Estate tax states: CT, HI, IL, ME, MD, MA, MN, NY, OR, RI, VT, WA + DC — exemptions from $1,000,000 (Oregon) to $15,000,000 (Connecticut)
- Inheritance tax states: Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania — paid by the inheritor, based on their relationship to the deceased, at any estate size
- Federal comparison: the federal exemption is $15,000,000 — every state threshold below sits under it
Figures verified against state revenue departments; see per-state notes. Updated whenever any legislature changes a threshold or rate — see the update log.
The Difference in One Sentence
Estate tax is paid by the estate before anything is distributed, once its value exceeds the state’s exemption. Inheritance tax is paid by each person who inherits, based on how closely they were related to the deceased — regardless of estate size. A trust avoids probate in every state; it does not avoid either of these taxes by itself.
States With an Estate Tax (2026)
| Jurisdiction | 2026 Exemption | Top Rate | Notes |
|---|---|---|---|
| Connecticut | $15,000,000 | 12% | Matches federal; only state with its own gift tax |
| Hawaii | $5,490,000 | 20% | One of two states with portability; top rate ties WA for highest |
| Illinois | $4,000,000 | 16% | Cliff effect above the threshold |
| Maine | $7,000,000 | 12% | No portability; indexed annually |
| Maryland | $5,000,000 | 16% | Only state with BOTH estate and inheritance tax |
| Massachusetts | $2,000,000 | 16% | Credit structure; cliff eliminated Oct 2023 |
| Minnesota | $3,000,000 | 16% | Not indexed; SF 4469 (introduced 2026) would raise to $4M |
| New York | $7,350,000 | 16% | 105% cliff: exceed it by 5% and the entire estate is taxed |
| Oregon | $1,000,000 | 16% | Lowest threshold in the nation; unchanged since 2001 |
| Rhode Island | $1,838,056 | 16% | Second-lowest; indexed annually |
| Vermont | $5,000,000 | 16% | Flat rate structure |
| Washington | $3,000,000 | 20% | Top rate rolled back from 35% to 20% July 1, 2026 (SB 6347) |
| Washington, D.C. | $4,988,400 | 16% | Indexed annually |
Sorted alphabetically. Every jurisdiction above taxes estates its residents’ federal return ignores — an estate can owe the state while owing the IRS nothing.
States With an Inheritance Tax (2026)
| State | Close Family | Extended Family | Others / Notes |
|---|---|---|---|
| Kentucky | Spouse, children, parents, siblings exempt (Class A) | 4–16% (Class B: nieces/nephews, etc.) | 6–16% (Class C: all others) |
| Maryland | Spouse, children, parents, siblings exempt | 10% on non-lineal heirs | Also levies a separate estate tax |
| Nebraska | Spouse exempt; immediate family 1% over $100,000 | 11% over $40,000 (remote relatives) | 15% over $25,000 (all others); collected by counties |
| New Jersey | Spouse, children, parents exempt (Class A) | 11–16% (Class C: siblings, in-laws) | 15–16% (Class D: all others) |
| Pennsylvania | Spouse 0%; lineal heirs 4.5% | 12% (siblings) | 15% (all others); applies from the first dollar |
In every inheritance-tax state, surviving spouses are fully exempt, and rates climb as the relationship gets more distant. Charitable bequests are generally exempt as well.
The Trend: Repeals Since 2013
The clear direction is elimination — six taxes repealed in twelve years, and no state has enacted a new one:
| Year | State | What Happened |
|---|---|---|
| 2025 | Iowa | Inheritance tax fully repealed (phased out 2021–2024, gone for deaths on or after January 1, 2025) |
| 2018 | New Jersey | Estate tax repealed (its inheritance tax remains) |
| 2018 | Delaware | Estate tax repealed |
| 2016 | Tennessee | Inheritance tax fully phased out |
| 2013 | Ohio | Estate tax repealed effective January 1, 2013 |
| 2013 | Indiana | Inheritance tax repealed |
What This Means for Planning
If you live in — or own property in — any of the 18 jurisdictions above, state-level planning matters even though the federal exemption exempts almost everyone from federal tax. Estate-tax states reward threshold planning (credit shelter trusts, gifting); inheritance-tax states reward who-gets-what planning, since the tax turns on the heir’s relationship. Start with your state’s guide (linked in the tables above) the estate tax planning overview, or probate costs by state.
Cite or Link This Page
Journalists, attorneys, and financial educators are welcome to cite these tables with attribution:
State Estate & Inheritance Taxes (2026), Family Estate Guide, https://familyestateguide.com/state-estate-tax/
Deep links: estate tax table · inheritance tax table · repeal history
Licensed under CC BY 4.0 — reuse, republish, or adapt this material, including commercially, with credit to Family Estate Guide and a link to this page. The license covers our compilation and analysis; underlying source data remains subject to its original terms.
Update Log
- August 2026 — Page published. All exemptions verified against state revenue departments (CT DRS, NY DTF, WA DOR, DC OTR, Maine Revenue Services, RI Division of Taxation, et al.). Includes Washington’s July 1, 2026 rate rollback (SB 6347).
- August 2026 — Released under CC BY 4.0; reuse permitted with attribution.
Last updated: August 2026. Reviewed quarterly and updated whenever any state legislature changes a threshold, rate, or repeals a tax. Educational information, not legal or tax advice.