Estate tax

Not every state has an estate tax. The twelve states plus D.C. that do have an estate tax, in alphabetical order, are below. Each has estate taxes with the following estate tax exemptions and tax rates (as of 2023):

  1. Connecticut                 $12.92 mm     12% flat 
  2. District of Columbia    $4.265 mm     11.2 – 16%
  3. Hawaii                         $5.49 mm        10 – 20%
  4. Illinois                          $4 mm             0.8 – 16%
  5. Maine                          $6.01 mm        8 – 12%
  6. Maryland                     $5 mm             0.8 – 16% (also has an inheritance tax)
  7. Massachusetts             $1 mm             0.8 – 16%
  8. Minnesota                   $3 mm             13 – 16%
  9. New York                     $6.58 mm        3.06 – 16%
  10. Oregon                        $1 mm             10 – 16%
  11. Rhode Island               $1.733 mm      0.8 – 16%
  12. Vermont                      $5 mm             16% flat
  13. Washington                 $2.193 mm     10 – 20%

Inheritance tax

Not every state has an inheritance tax. The six states that do have an inheritance tax, in alphabetical order, are below. Inheritance taxes, unlike estate taxes, typically do not have exemption amounts. Each has inheritance taxes with the following tax rates (as of 2023):

  1. Iowa                            0 – 6% 
  2. Kentucky                     4 – 16%
  3. Maryland                    10% flat (also has estate tax)
  4. Nebraska                    0 – 15%
  5. New Jersey                 0 – 16%
  6. Pennsylvania               0 – 15%  


Note: Each state may have subtle but critical nuances beyond the scope of this article. Please consult an estate tax professional to verify what applies to your specific situation. Laws are subject to change.

Source: PlanEasy research, Tax Foundation, Kiplinger