The 18 states that tax estates or inheritances — thresholds, rates, and your exposure
| State | Type | Exemption | Top rate |
|---|
While the federal estate tax retreats to $15 million, 17 states and DC still tax death — some starting at estate values an ordinary house-plus-401(k) reaches. Twelve states plus DC levy estate taxes (Oregon from $1M, Massachusetts from $2M, Washington at rates up to 35%); five levy inheritance taxes where the heir pays based on relationship; Maryland charges both. This tool maps every regime and estimates your family's exposure.
| Estate tax | Inheritance tax | |
|---|---|---|
| Who pays | The estate, before distribution | Each heir, on what they receive |
| Driven by | Estate size vs exemption | Relationship to the deceased |
| States | CT, DC, HI, IL, ME, MD, MA, MN, NY, OR, RI, VT, WA | KY, MD, NE, NJ, PA |
| Spouses | Exempt everywhere | |
The toolbox: lifetime annual-exclusion gifting (most states don't tax gifts — shrinking the estate below the threshold is straightforward over years, see the Gift Tax tool), credit-shelter trusts for couples, charitable bequests to dodge cliffs, and — bluntly — retiring across a state line, which a $3M Massachusetts estate values at ~$100,000+. Heirs' inheritances remain federal-income-tax-free either way, and the federal estimator covers the $15M layer.
No — inheritances aren't federal income, and the federal estate tax (paid by estates over $15M) is the estate's problem. State inheritance taxes in the five listed states are the exception, and inherited traditional IRAs are taxed as their withdrawals occur.
The decedent's domicile state (plus any state where they owned real property). Heirs' own states don't tax inheritances received — a Nebraska heir of a Florida estate owes nothing; a Florida heir of a Nebraska estate owes Nebraska.
Exemptions and top rates are current; the graduated-bracket approximation lands within ~15% for most estates. For planning, the direction and order of magnitude are what matter — the exact bill is an estate attorney's spreadsheet.
Confirm the vacation-home states too, then focus on the universal issues: step-up basis, beneficiary designations, portability filing if federal-relevant, and a will/trust so probate doesn't eat what taxes spared.
The trend is retreat — exemptions rising (MA doubled to $2M in 2023), states repealing (IA finished 2025) — but the remaining regimes are entrenched revenue. Plan on current law; revisit at each legislative session if you're near a threshold.
Credit-shelter trusts preserve both spouses' exemptions (fixing the no-portability problem); certain irrevocable trusts remove assets entirely. State-specific and worth exactly one consultation if your estate exceeds your state's line.
Yes — every figure computes locally in your browser.
Check the map once: if your state's on it, the exposure math takes a minute and the planning options are well-worn; if it isn't, cross one worry off the estate list and go verify your beneficiary designations instead.