Estate and inheritance taxes are two types of death taxes. They apply to the assets a deceased person leaves behind, such as real estate, bank accounts, and securities.

Securities

A financial security is a tradeable asset that has monetary value. There are many types of financial securities, often called “securities."

In the United States, estate taxes are more common. There's a federal estate tax, although it only applies to estates worth more than $12.92 million. Several states have their own estate taxes with lower thresholds, while six have inheritance taxes.

Because these taxes vary by state, location plays a key role in how much an estate and the beneficiaries of an inheritance pay. Keep reading for the most recent estate and inheritance tax rates by state.

Key findings

Key findings

  • A federal estate tax ranging from 18% to 40% applies to all estates worth more than $12.92 million.
  • 17 states and Washington, D.C., have estate or inheritance taxes.
  • Maryland is the only state that has both an estate tax and an inheritance tax.
  • Only six states have inheritance taxes, and one (Iowa) will eliminate its inheritance tax by 2025.
  • Massachusetts and Oregon have the lowest threshold for estate taxes since they impose taxes on all estates worth more than $1 million.
  • Washington has the highest estate tax at 20%, which is applied to the portion of an estate's value greater than $11,193,000.
  • Inheritance tax rates depend on the beneficiary's relation to the deceased, and, in each state, certain types of relationships are exempt from inheritance tax.

Estate vs. inheritance taxes: What's the difference?

Estate vs. inheritance taxes: What's the difference?

The difference between estate taxes and inheritance taxes is who pays them. Estate taxes are paid by the deceased's estate before any inheritance is issued. Inheritance taxes are paid by beneficiaries of an inheritance on the amount they receive.

For example, let's say a family member passes away in an area with a 5% estate tax and a 10% inheritance tax, and they leave you their estate worth $1 million. Here's how estate and inheritance taxes would work:

  • The estate would pay $50,000 (5%) in estate taxes.
  • You would receive $950,000.
  • You would pay $95,000 (10%) in inheritance taxes.

Federal estate taxes

Federal estate taxes

Federal estate taxes apply to estates worth more than $12.92 million as of 2023. Tax rates range from 18% to 40%. There is no federal inheritance tax.

The following table lists federal estate tax rates based on the taxable amount, which is the value of the estate minus the $12.92 million exclusion:

Data source: Internal Revenue Service (2023).
TAXABLE VALUE OF ESTATE (TOTAL VALUE OF ESTATE MINUS $12.92M) FEDERAL ESTATE TAX RATE
Up to $10,000 18%
Over $10,000 to $20,000 20%
Over $20,000 to $40,000 22%
Over $40,000 to $60,000 24%
Over $60,000 to $80,000 26%
Over $80,000 to $100,000 28%
Over $100,000 to $150,000 30%
Over $150,000 to $250,000 32%
Over $250,000 to $500,000 34%
Over $500,000 to $750,000 37%
Over $750,000 to $1,000,000 39%
Over $1,000,000 40%

States that don't have estate or inheritance taxes

States that don't have estate or inheritance taxes

The following states don't have estate or inheritance taxes:

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Delaware
  • Florida
  • Georgia
  • Idaho
  • Indiana
  • Kansas
  • Louisiana
  • Michigan
  • Mississippi
  • Missouri
  • Montana
  • Nevada
  • New Hampshire
  • New Mexico
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Virginia
  • West Virginia
  • Wisconsin
  • Wyoming

In those states, the only tax that would apply is the federal estate tax on estates worth more than $12.92 million.

States with estate taxes, inheritances taxes, or both

States with estate taxes, inheritances taxes, or both

Now let's look at the states with estate taxes, inheritance taxes, or both. Note that not all states have released their 2023 tax rates yet. We've included the most recent estate and inheritance tax rates that are currently available for each state.

Connecticut estate taxes

Connecticut has a flat-rate estate tax of 12% with an $11.4 million annual exclusion as of 2023. The total tax that any estate must pay is capped at $15 million.

Hawaii estate taxes

Hawaii has an estate tax on estates worth more than $5.49 million. Estate tax rates range from 10% to 20%.

Here are the Hawaii estate tax rates:

Source: State of Hawaii Department of Taxation (2022).
VALUE OF ESTATE HAWAII ESTATE TAX RATE
$0 to $1,000,000 10.0%
Over $1,000,000 to $2,000,000 11.0%
Over $2,000,000 to $3,000,000 12.0%
Over $3,000,000 to $4,000,000 13.0%
Over $4,000,000 to $5,000,000 14.0%
Over $5,000,000 to $10,000,000 15.7%
Over $10,000,000 20.0%

Illinois estate taxes

Illinois has an estate tax on estates worth more than $4 million. Estate tax rates range from 0.8% to 16%.

Although Illinois exempts estates up to $4 million from estate taxes, it taxes the entire amount of estates that are worth more than that. To determine tax rates, it uses the federal credit for state death taxes table. This table has more than 20 tax rates corresponding to different amount ranges.

For example, amounts of at least $40,000 but less than $90,000 have a tax rate of 0.8% -- but only if the estate is worth more than $4 million. The tax rate increases to 1.6% for amounts of at least $90,000 but less than $140,000. This pattern continues up to amounts of at least $10,040,000, which have a tax rate of 16%.

The easiest option for Illinois residents who want to figure out estate taxes is the Illinois Attorney General's estate tax calculator.

Iowa inheritance taxes

Iowa has an inheritance tax, but, in 2021, the state decided it would repeal this tax by 2025. It has been decreasing its inheritance tax by 20% per year since 2021. For deaths that occur in or after 2025, there will be no inheritance tax.

The inheritance tax in Iowa applies to estates of $25,000 or more. Estates with lower values are exempt from inheritance tax. Iowa also exempts beneficiaries from paying inheritance tax if they're a surviving spouse or a lineal ascendant or descendant to the deceased. Lineal ascendants and descendants include:

  • Parents, grandparents, and great-grandparents
  • Children, stepchildren, grandchildren, and great-grandchildren
  • Descendants by adoption

For other beneficiaries of an inheritance, the inheritance tax rate depends on the individual's relation to the deceased. Those who aren't exempt will be in one of two groups: Tax Rate B or Tax Rate C.

Tax Rate B applies to siblings, half-siblings, sons-in-law, and daughters-in-law. Here are the rates for this group:

VALUE OF INHERITANCE IOWA INHERITANCE TAX RATE B (2023)
Up to $12,500 2.0%
Over $12,500 to $25,000 2.4%
Over $25,000 to $75,000 2.8%
Over $75,000 to $100,000 3.2%
Over $100,000 to $150,000 3.6%
Over $150,000 4.0%

Tax Rate C applies to uncles, aunts, nieces, nephews, foster children, cousins, brothers-in-law, sisters-in-law, and all other individuals. Here are the tax rates for this group:

VALUE OF INHERITANCE IOWA INHERITANCE TAX RATE C (2023)
Up to $50,000 4.0%
Over $50,000 to $100,000 4.8%
Over $100,000 6.0%

Kentucky inheritance taxes

Kentucky has an inheritance tax ranging from 4% to 16% that varies based on the beneficiary's relation to the deceased. If the inheritance tax is paid within nine months of the decedent's death, a 5% discount is allowed. There are three classes of beneficiaries in Kentucky: Class A, Class B, and Class C.

Class A is exempt from paying inheritance taxes if the date of the death was after June 30, 1998. This class is close family members, and it includes:

  • Surviving spouses
  • Parents
  • Children and grandchildren
  • Siblings and half-siblings

Class B beneficiaries receive a $1,000 inheritance tax exemption. This class is for other family members, and it includes:

  • Nieces and nephews (and half-nieces and half-nephews)
  • Daughters-in-law and sons-in-law
  • Aunts and uncles
  • Great-grandchildren

Class C beneficiaries receive a $500 tax exemption. All individuals not included in Class A or Class B, including cousins, are part of Class C.

Here are the Kentucky inheritance tax rates for Class B and Class C:

Data source: Kentucky Department of Revenue (2023).
VALUE OF INHERITANCE KENTUCKY CLASS B INHERITANCE TAX RATE KENTUCKY CLASS C INHERITANCE TAX RATE
Up to $500 0% 0%
Over $500 to $1,000 0% 6%
Over $1,000 to $10,000 4% 6%
Over $10,000 to $20,000 5% 8%
Over $20,000 to $30,000 6% 10%
Over $30,000 to $45,000 8% 12%
Over $45,000 to $60,000 10% 14%
Over $60,000 to $100,000 12% 16%
Over $100,000 to $200,000 14% 16%
Over $200,000 16% 16%

Maine estate taxes

Maine has an estate tax ranging from 8% to 12%. It offers an annual exclusion amount of $6.41 million for deaths in 2023.

Here are Maine's current estate taxes:

Data source: Maine Revenue Services (2023).
VALUE OF ESTATE MAINE ESTATE TAX RATE (2023)
Up to $6,410,000 0%
Over $6,410,000 to $9,410,000 8%
Over $9,410,000 to $12,410,000 10%
Over $12,410,000 12%

Maryland estate and inheritance taxes

Maryland is the only state that has an estate tax and an inheritance tax.

The Maryland estate tax is 16% on estates worth more than $5 million. Its inheritance tax is 10% for those dying on or after July 1, 2000. However, beneficiaries with any of the following relationships to the deceased are exempt from paying the Maryland inheritance tax:

  • Children or other lineal descendants
  • Spouses of children or other lineal descendants
  • Spouses
  • Parents and grandparents
  • Stepchildren and stepparents
  • Siblings

When estate and inheritance taxes apply, the amount of the estate tax is reduced by the amount of the inheritance tax.

Massachusetts estate taxes

Massachusetts has an estate tax on estates worth more than $1 million. Estate tax rates range from 0.8% to 16%.

Like Illinois, Massachusetts uses the federal credit for state death taxes table to determine estate tax rates. It taxes the entire amount of the estate in excess of that $1 million threshold.

The federal credit for state death taxes table has a tax rate of 0% for the first $40,000. A tax rate of 0.8% applies on amounts of at least $40,000 but less than $90,000, and tax rates increase sequentially from there.

The full table of Massachusetts estate tax rates is available in the state's guide to estate taxes.

Minnesota estate taxes

Minnesota has an estate tax ranging from 13% to 16%. Estate taxes apply to estates worth more than $3 million as of 2022.

Here are Minnesota's estate tax rates:

Data source: Minnesota Department of Revenue (2022).
VALUE OF ESTATE MINNESOTA ESTATE TAX RATE (2022)
Up to $3,000,000 0.0%
Over $3,000,000 to $10,100,000 13.0%
Over $10,100,000 to $11,100,000 13.6%
Over $11,100,000 to $12,100,000 14.4%
Over $12,100,000 to $13,100,000 15.2%
Over $13,100,000 16.0%

Nebraska inheritance taxes

Nebraska has an inheritance tax ranging from 1% to 15%. The tax rate and exemption amount depend on the beneficiary's relationship to the decedent. Surviving spouses don't need to pay inheritance tax in Nebraska.

Here are Nebraska's inheritance tax rates and exemption amounts:

Data source: Legislature of Nebraska (2023).
RELATION TO DECEASED NEBRASKA INHERITANCE TAX RATE EXEMPTION AMOUNT
Immediate relatives 1% $100,000
Remote relatives 11% $40,000
All other beneficiaries 15% $25,000

For inheritance tax purposes, Nebraska considers the following relations to be immediate relatives:

  • Children, adopted children, grandchildren, and other lineal descendants
  • Siblings
  • Parents and grandparents
  • Spouses of any of the immediate relatives listed above
  • Relatives of the decedent's former spouse, if the decedent was married to the former spouse at the time of the former spouse's death

Nebraska considers the following relations to be remote relatives:

  • Nieces and nephews
  • Aunts and uncles
  • Lineal descendants or spouses of the remote relatives listed above

New Jersey inheritance taxes

New Jersey has an inheritance tax ranging from 11% to 16%. The tax rate and the exemption amount depend on the beneficiary's relation to the deceased. New Jersey previously had an estate tax, but the state repealed it in 2018.

There are three classes of individual beneficiaries in New Jersey: Class A, Class C, and Class D.

Class A is exempt from New Jersey inheritance tax and includes the following relationships:

  • Surviving spouses, domestic partners, and civil union partners
  • Children, stepchildren, grandchildren, and other lineal descendants (does not include step-grandchildren or step-great-grandchildren)
  • Parents and grandparents

Class C has a $25,000 inheritance tax exemption. This class includes siblings and the child's spouse or civil union partner. Here are the New Jersey inheritance tax rates for Class C:

Data source: New Jersey Division of Taxation (2023).
VALUE OF INHERITANCE NEW JERSEY CLASS C INHERITANCE TAX RATE
Up to $25,000 0%
Over $25,000 to $1,100,000 11%
Over $1,100,000 to $1,400,000 13%
Over $1,400,000 to $1,700,000 14%
Over $1,700,000 16%

Class D has no tax exemption. It includes anyone who isn't in Class A or Class C. It has a simple tax structure:

Data source: New Jersey Division of Taxation (2023).
VALUE OF INHERITANCE NEW JERSEY CLASS D INHERITANCE TAX RATE
Up to $700,000 15%
Over $700,000 16%

New York estate taxes

New York has an estate tax ranging from 3.06% to 16%. Estate taxes apply to estates worth more than the basic exclusion amount of $6.58 million as of 2023.

If an estate is worth more than the basic exclusion amount, then estate taxes apply to its full value. Tax rates start at 3.06% on amounts up to $500,000 and gradually increase to the highest rate of 16% on amounts of more than $10.1 million. The full tax table is available on the New York State Estate Tax Return Form ET-706.

Oregon estate taxes

Oregon has an estate tax ranging from 10% to 16%. The state has an exemption of $1 million in estate taxes.

Here are Oregon's estate tax rates:

Data source: Oregon Department of Revenue (2022).
VALUE OF ESTATE OREGON ESTATE TAX RATE (2022)
Up to $1,000,000 0.00%
Over $1,000,000 to $1,500,000 10.00%
Over $1,500,000 to $2,500,000 10.25%
Over $2,500,000 to $3,500,000 10.50%
Over $3,500,000 to $4,500,000 11.00%
Over $4,500,000 to $5,500,000 11.50%
Over $5,500,000 to $6,500,000 12.00%
Over $6,500,000 to $7,500,000 13.00%
Over $7,500,000 to $8,500,000 14.00%
Over $8,500,000 to $9,500,000 15.00%
Over $9,500,000 16.00%

Pennsylvania inheritance taxes

Pennsylvania has an inheritance tax ranging from 4.5% to 15%. Inheritance tax rates depend on the beneficiary's relationship to the decedent. Surviving spouses and parents of children aged 21 or younger are exempt from paying inheritance taxes.

Here are Pennsylvania's inheritance tax rates:

Data source: Pennsylvania Department of Revenue (2023).
RELATION TO DECEASED PENNSYLVANIA INHERITANCE TAX RATE
Surviving spouses and parents of children aged 21 or younger 0.0%
Direct descendants and lineal heirs 4.5%
Siblings 12.0%
All other beneficiaries 15.0%

Rhode Island estate taxes

As of 2023, Rhode Island has an estate tax on estates worth more than $1,733,264. Estate tax rates range from 0.8% to 16%.

Rhode Island uses the federal credit for state death taxes table to determine estate tax rates. It taxes the entire amount of estates that exceed the $1,733,264 threshold.

The federal credit for state death taxes table has a tax rate of 0% for the first $40,000. A tax rate of 0.8% applies on amounts of at least $40,000 but less than $90,000, and tax rates increase sequentially from there.

The full table of Rhode Island estate tax rates is available on the state's estate tax return Form RI-100A.

Vermont estate taxes

Vermont's estate tax is a flat rate of 16% on the portion of a taxable estate that exceeds the exclusion amount. The state's exclusion amount is $5 million.

Washington estate taxes

Washington has an estate tax ranging from 10% to 20%. The estate tax exclusion is $2,193,000.

Here are Washington's estate tax rates:

Data source: Washington State Department of Revenue (2023).
VALUE OF ESTATE WASHINGTON ESTATE TAX RATE (2023)
Up to $2,193,000 0.0%
Over $2,193,000 to $3,193,000 10.0%
Over $3,193,000 to $4,193,000 14.0%
Over $4,193,000 to $5,193,000 15.0%
Over $5,193,000 to $6,193,000 16.0%
Over $6,193,000 to $8,193,000 18.0%
Over $8,193,000 to $9,193,000 19.0%
Over $9,193,000 to $11,193,000 19.5%
Over $11,193,000 20.0%

Washington, D.C., estate taxes

Washington, D.C., has an estate tax ranging from 11.2% to 16.0%. The estate tax exclusion is $4,254,800 as of 2022 and increases annually based on a cost of living adjustment.

Here are the Washington, D.C., estate tax rates for 2022:

Data source: Washington, D.C., Office of Tax and Revenue (2022).
VALUE OF ESTATE WASHINGTON, D.C. STATE TAX RATE (2022)
Up to $4,254,800 0.0%
Over $4,254,800 to $5,000,000 11.2%
Over $5,000,000 to $6,000,000 12.0%
Over $6,000,000 to $7,000,000 12.8%
Over $7,000,000 to $8,000,000 13.6%
Over $8,000,000 to $9,000,000 14.4%
Over $9,000,000 to $10,000,000 15.2%
Over $10,000,000 16.0%

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