12 states plus D.C. levy an estate tax. 6 states levy an inheritance tax. Maryland is the only state with both. Most states follow the federal exemption threshold.
| State | Estate Tax | Exemption | Top Rate | Inheritance Tax | Inh. Top Rate |
|---|---|---|---|---|---|
| Connecticut | ✅ | $13.6M | 12% | — | |
| District of Columbia | ✅ | $4.0M | 16% | — | |
| Hawaii | ✅ | $5.49M | 20% | — | |
| Illinois | ✅ | $4.0M | 16% | — | |
| Iowa | — | ✅ | 15% | ||
| Kentucky | — | ✅ | 16% | ||
| Maine | ✅ | $6.8M | 12% | — | |
| Maryland | ✅ | $5.0M | 16% | ✅ | 10% |
| Massachusetts | ✅ | $2.0M | 16% | — | |
| Minnesota | ✅ | $3.0M | 16% | — | |
| Nebraska | — | ✅ | 18% | ||
| New Jersey | — | ✅ | 16% | ||
| New York | ✅ | $7.16M | 16% | — | |
| Oregon | ✅ | $1.0M | 16% | — | |
| Pennsylvania | — | ✅ | 15% | ||
| Rhode Island | ✅ | $1.77M | 16% | — | |
| Vermont | ✅ | $5.0M | 16% | — | |
| Washington | ✅ | $2.193M | 20% | — |
Federal estate tax: Applies to estates over $13.61M per person (2024). The TCJA doubled the exemption — this provision sunsets after 2025, potentially reverting to ~$7M.
State estate tax: Applies to smaller estates. Oregon taxes estates over $1M. These taxes apply to the estate itself, not the beneficiary.
Inheritance tax: Paid by the beneficiary, not the estate. Rates often vary by the relationship to the deceased.
Property taxes, state income taxes, and deductions affect your federal return. Get clear, plain-English tax briefs from CapitalTaxBrief.com.