Overview of Inheritance and Estate Tax Rules by State
| State | Death tax type | Tax rate / brackets (2025) |
|---|---|---|
| Alabama | None | — |
| Alaska | None | — |
| Arizona | None | — |
| Arkansas | None | — |
| California | None | — |
| Colorado | None | — |
| Connecticut | Estate tax | Flat 12% over $13.99M exemption. |
| Delaware | None | — |
| Florida | None | — |
| Georgia | None | — |
| Hawaii | Estate tax | Progressive 10%–20%; exclusion $5.49M. |
| Idaho | None | — |
| Illinois | Estate tax | Graduated up to 16%; $4M exemption. |
| Indiana | None | — |
| Iowa | None | Inheritance tax repealed 2025. |
| Kansas | None | — |
| Kentucky | Inheritance tax | Class A exempt; Class B 4%–16%; Class C 6%–16%. |
| Louisiana | None | — |
| Maine | Estate tax | $7M exclusion; 8%–12%. |
| Maryland | Inheritance and Estate tax | Estate up to 16%; $5M exemption; Inheritance 10% non-exempt. |
| Massachusetts | Estate tax | $2M threshold; up to 16%. |
| Michigan | None | — |
| Minnesota | Estate tax | $3M exemption; 13%–16%. |
| Mississippi | None | — |
| Missouri | None | — |
| Montana | None | — |
| Nebraska | Inheritance tax | Relatives 1%–15% depending on class. |
| Nevada | None | — |
| New Hampshire | None | — |
| New Jersey | Inheritance tax | Class A/E exempt; Class C 11%–16%; Class D 15%–16%. |
| New Mexico | None | — |
| New York | Estate tax | Exclusion $7.16M; rates up to 16%. |
| North Carolina | None | — |
| North Dakota | None | — |
| Ohio | None | — |
| Oklahoma | None | — |
| Oregon | Estate tax | $1M exemption; 10%–16%. |
| Pennsylvania | Inheritance tax | 0% spouse; 4.5% lineal; 12% siblings; 15% others. |
| Rhode Island | Estate tax | Threshold $1.80M; top 16%. |
| South Carolina | None | — |
| South Dakota | None | — |
| Tennessee | None | — |
| Texas | None | — |
| Utah | None | — |
| Vermont | Estate tax | $5M exemption; flat 16%. |
| Virginia | None | — |
| Washington | Estate tax | Exclusion $3M; 10%–35%. |
| West Virginia | None | — |
| Wisconsin | None | — |
| Wyoming | None | — |
Details of Inheritance and Estate Tax by State
Status date: Information verified as of August 31, 2025. Click a state below to open detailed, SEO-optimized information about its estate tax or inheritance tax.
Connecticut Estate Tax 2025: $13.99M Exemption, Flat 12% Rate
Connecticut imposes a state estate tax on estates that exceed the Connecticut exemption amount. For decedents dying in 2025, the exemption is $13.99 million. Above that threshold, Connecticut assesses a flat 12% estate tax. The tax is levied on the estate itself before assets are distributed to heirs. Unlike inheritance taxes, beneficiaries do not pay based on their relationship to the decedent. Planning often focuses on lifetime gifting, charitable strategies, and credit-shelter trusts to manage exposure. Connecticut’s relatively high exemption means the tax targets larger estates, but business or real-estate heavy estates can still be affected. Nonresidents owning Connecticut-situs property can also fall under the rules. Keep federal rules in mind, but file Connecticut forms separately. Coordination with multi-state assets is important for accurate compliance.
Hawaii Estate Tax 2025: $5.49M Exclusion, 10%–20% Progressive Rates
Hawaii levies a progressive estate tax with rates ranging from 10% to 20%. The state exclusion is generally understood as $5.49 million, which is materially lower than the 2025 federal threshold. Because of the lower exclusion, many Hawaii estates owe state estate tax even when no federal tax is due. The tax applies to residents and to nonresidents with Hawaii-situs property. Planning commonly uses marital and charitable deductions as well as trusts to reduce the taxable estate. Executors must file Hawaii’s Form M-6 with supporting schedules. High real-estate values can push estates over the exclusion, so early appraisals are helpful. Cross-border estates should align Hawaii filings with federal documentation. Review annually for any legislative updates that could change the exclusion or brackets.
Illinois Estate Tax 2025: $4,000,000 Exclusion, Graduated to 16%
Illinois imposes a state estate tax with a $4 million exclusion per decedent. Amounts above the exclusion face a graduated schedule with a maximum 16% rate. Illinois does not offer portability of the state exclusion between spouses, so credit-shelter trust planning is common. Estates must file with the Illinois Attorney General using Form 700 and, in many cases, attach a pro-forma federal Form 706. High-value real estate, closely held businesses, and farms frequently drive filing requirements. Nonresident owners of Illinois-situs property can also trigger Illinois estate tax. Because the exclusion is not indexed, more estates may be exposed over time. Consider lifetime gifts and valuation strategies to manage thresholds. Coordinate Illinois compliance with any other states where the decedent held property.
Maine Estate Tax 2025: $7,000,000 Exclusion, 8% / 10% / 12% Tiers
Maine maintains a state estate tax with an indexed exclusion of $7,000,000 for deaths in 2025. Tax above that exclusion is computed using three tiers at 8%, 10%, and 12%. The structure shields most smaller estates while taxing larger transfers. Filings are made on Maine Form 706ME according to the state’s brackets. Because Maine’s exclusion is separate from federal rules, an estate might owe Maine tax without owing federal tax. Couples should plan to use both exclusions; Maine does not provide portability. Ownership of Maine-situs real property by nonresidents can also trigger obligations. Appraisals and entity structuring are common planning tools. Review Maine Revenue Services guidance each year for updated exclusion amounts and tables.
Maryland Estate Tax 2025: $5M Exemption, up to 16% + 10% Inheritance Tax
Maryland is unique in levying both an estate tax and an inheritance tax. The estate tax exemption is $5,000,000 per decedent; amounts above can face rates up to 16%. Separately, a 10% inheritance tax generally applies to transfers to non-exempt beneficiaries (e.g., friends or distant relatives); close family members are typically exempt. Maryland allows portability of the unused state estate tax exemption for decedents dying in 2019 and later. Estate planning should consider both regimes to avoid double exposure. Real property, closely held businesses, and retirement assets may require special handling. Executors file with the Comptroller for estate tax and the Register of Wills for inheritance tax. Monitor legislative developments, as proposals surface periodically to adjust exemptions or rates. Proper structuring can materially reduce combined liabilities in Maryland.
Massachusetts Estate Tax 2025: $2,000,000 Threshold with Credit, up to 16%
Massachusetts imposes estate tax when an estate reaches the $2,000,000 threshold. A state credit (up to about $99,600) eliminates tax at or below $2M and softens the “cliff” just above it. Rates then graduate up to a 16% maximum. The relatively low threshold means many estates—especially with Greater Boston real estate—must file. Massachusetts does not offer state portability, making spousal trust planning important. Filing is separate from federal requirements and uses Massachusetts DOR procedures. Charitable bequests and lifetime gifts are common tools to manage exposure. Nonresidents owning Massachusetts property can also trigger tax. Revisit plans after major asset changes to stay below pain points around the threshold.
Minnesota Estate Tax 2025: $3,000,000 Exclusion, ~13%–16% Rates
Minnesota requires an estate tax return when the estate exceeds a $3,000,000 exclusion (unchanged for 2025). Tax rates are graduated, generally ranging from about 13% to 16%. Farm and small-business deductions may apply, but careful documentation is essential. Minnesota does not provide state portability, so couples often use credit-shelter trusts. The state taxes residents on worldwide assets and nonresidents on Minnesota-situs property. A three-year “gift add-back” can increase the taxable estate if significant gifts were made shortly before death. Executors file Minnesota Form M706 with supporting valuations. Because brackets and deductions are technical, early planning can preserve family businesses and farmland. Review Department of Revenue updates for any changes to tables or guidance.
New Jersey Inheritance Tax 2025: Class-Based Rates 11%–16%
New Jersey no longer has a state estate tax but retains an inheritance tax. Class A/E beneficiaries (e.g., spouses, children, charities) are generally exempt. Class C beneficiaries (e.g., siblings and certain in-laws) face rates from 11% to 16% after a $25,000 exemption. Class D beneficiaries (all others) are taxed at 15%–16% with no significant exemption. The tax is paid by the beneficiary based on their relationship and amount received. Estates often use beneficiary designations and trusts to route assets toward exempt classes. Charitable bequests can eliminate New Jersey inheritance tax. Coordination with New York or Pennsylvania rules may be needed for tri-state families. Always confirm the beneficiary’s class before making distributions.
New York Estate Tax 2025: $7.16M Exclusion with “Cliff,” up to 16%
New York’s basic exclusion amount is $7,160,000 for deaths in 2025. If a taxable estate exceeds about 105% of the exclusion, the state’s “cliff” rule can effectively phase out the exclusion so that the entire estate becomes taxable. Rates graduate up to a maximum of 16%. The cliff makes precision planning crucial to avoid tipping over the threshold. New York taxes residents and New York-situs property owned by nonresidents. Common techniques include charitable bequests and lifetime gifts to manage exposure before death. Portability is not available at the state level, so spousal planning with trusts is common. Executors file with the NY Department of Taxation and Finance and should track domicile factors for snowbirds. Re-check annually because the exclusion is indexed and rules can change.
Nebraska Inheritance Tax 2025: Class-Based Exemptions, up to 15%
Nebraska imposes a county-administered inheritance tax on beneficiaries. After 2023 reforms, typical exemptions include about $100,000 for close relatives, $40,000 for more remote relatives, and $25,000 for others, with rates commonly 1%, 11%, and 15% by class. Transfers to spouses are exempt, and certain younger heirs may have additional relief. Because the tax is collected by counties, procedures can vary slightly by locality. Beneficiaries are responsible for payment, not the estate, so communications at settlement are key. Structuring bequests toward exempt or lower-taxed classes can reduce the burden. Legislative proposals to further reduce rates surface periodically, so monitor local updates. Documentation of relationship status is essential to claim the correct exemption.
Oregon Estate Tax 2025: $1,000,000 Exemption, 10%–16% Progressive Rates
Oregon levies an estate tax beginning at a low $1,000,000 exemption, exposing many moderate estates. Marginal rates progress from 10% up to 16%. Residents are taxed on worldwide assets; nonresidents owe tax on Oregon-situs property. Because the exemption is not indexed, inflation can bring more estates into scope over time. Planning frequently involves lifetime gifts, charitable transfers, and entity structuring for closely held businesses. Farm and forest properties may qualify for special treatment with strict documentation. Executors must file Oregon’s estate transfer tax return and follow the state’s bracket tables. Multi-state estates with Washington or California connections should watch domicile and situs rules. Regular reviews help keep estates under the relatively low Oregon threshold.
Pennsylvania Inheritance Tax 2025: 0%–15% by Relationship
Pennsylvania imposes an inheritance tax on most transfers of property. Spouses and transfers to a parent from a child age 21 or younger are taxed at 0%. Lineal heirs (adult children, grandchildren) pay 4.5%; siblings pay 12%; all others pay 15% (charities and government are generally exempt). The tax applies to residents and to Pennsylvania-situs property owned by nonresidents. Because beneficiaries pay, estates often structure bequests to reduce their burden. Titling property jointly between spouses can avoid tax at the first death. Filing is required even when exemptions apply, so keep records. County resources can assist with filings, but state Department of Revenue guidance controls. Coordinate with federal rules for retirement accounts that have separate income-tax implications.
Rhode Island Estate Tax 2025: ~$1,802,431 Threshold, up to 16%
Rhode Island imposes an estate tax when the taxable estate exceeds an inflation-indexed threshold (about $1,802,431 for 2025). Amounts above the threshold face graduated rates up to 16%. Because the threshold is relatively low, many estates with coastal real estate can be affected. The exemption and brackets are adjusted periodically, so confirm the current numbers for the year of death. Rhode Island taxes estates of residents and nonresidents with Rhode Island-situs property. Executors file with the Division of Taxation following state schedules. Portability is not provided at the state level, so couples should plan to use both exemptions. Lifetime gifts and charitable strategies are common approaches to lower exposure. Domicile and situs questions should be resolved early in administration.
Vermont Estate Tax 2025: $5,000,000 Exemption, Flat 16% Above
Vermont levies a straightforward estate tax with a $5,000,000 exemption. Taxable value above the exemption is taxed at a flat 16% rate. This simple structure eases calculations but can still create significant liabilities for larger estates. Vermont taxes residents and nonresidents with Vermont-situs property. Portability is not available, so credit-shelter trust planning remains valuable for couples. Charitable bequests reduce the taxable estate dollar-for-dollar. Appraisals for real property and closely held businesses help document values. Executors should check for any recent legislative revisions, but Vermont’s 16% flat rate has been stable. Estate plans should also consider federal rules and income-tax issues for retirement assets.
Washington Estate Tax 2025: $3,000,000 Exclusion (7/1–12/31/2025), 10%–35% Rates
Washington imposes a progressive estate tax with updated thresholds effective in 2025. For deaths occurring July 1–December 31, 2025, the applicable exclusion amount is $3,000,000 (previously $2,193,000). Rates range from 10% up to 35% under the revised tables. The exclusion and filing thresholds may be indexed for future years. Residents are taxed on worldwide assets; nonresidents owe tax on Washington-situs property. The law also provides a qualified family-owned business deduction (QFOBI) with its own limits. Because brackets increased at higher levels, large estates may see higher effective rates despite the higher exclusion. Executors file with the Washington Department of Revenue and should select the correct table based on date of death. Careful planning can coordinate Washington rules with federal estate tax exposure.
Kentucky Inheritance Tax 2025: Class A Exempt; Class B 4%–16%; Class C 6%–16%
Kentucky levies an inheritance tax based on the beneficiary’s relationship to the decedent. Class A beneficiaries (e.g., spouses, children, parents) are exempt. Class B beneficiaries (e.g., nieces/nephews, certain in-laws) receive a $1,000 exemption and then pay 4%–16%. Class C beneficiaries (unrelated persons) receive a $500 exemption and then pay 6%–16%. The tax is paid by beneficiaries rather than the estate. In planning, families sometimes structure gifts or use trusts to minimize taxes on non-exempt heirs. Charitable bequests are typically exempt. Executors should verify beneficiary class carefully to apply the correct rate and exemption. Kentucky’s inheritance tax charts and examples help calculate exact liability for each beneficiary.