Thirty-eight states impose no estate tax and forty-five impose no inheritance tax, so for most Americans the states with no estate tax or inheritance tax cover where they already live. Only twelve states and the District of Columbia collect an estate tax, and only five states collect an inheritance tax. Where you live — and where you own property — decides which of those bills, if any, your heirs will see.
The 38 States With No Estate Tax
These states do not levy any estate tax on a deceased resident’s assets, regardless of how large the estate is:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, and Wyoming.1Tax Foundation. Estate and Inheritance Taxes by State, 2025
If you die a resident of any of these states, your executor files no state estate tax return. A $20 million estate in Texas or Florida owes nothing to the state. The only estate tax question is the federal one, and that only matters above $15 million.
Most of these states did not affirmatively decide to spare estates from tax. Before 2005, federal law offered a dollar-for-dollar credit against state estate taxes, so a state tax cost the taxpayer nothing extra. When Congress phased that credit out, states whose taxes were tied to it lost the revenue automatically. Others repealed their own laws afterward rather than rebuild them as standalone taxes.1Tax Foundation. Estate and Inheritance Taxes by State, 2025
The 12 States and DC That Do Charge an Estate Tax
If you live in one of these jurisdictions, your estate can owe state tax well below the federal $15 million line. Oregon starts at $1 million. Massachusetts starts at $2 million. The 2026 exemption thresholds:
- Connecticut: $15,000,000
- District of Columbia: $4,988,400
- Hawaii: $5,490,000
- Illinois: $4,000,000
- Maine: $7,000,000
- Maryland: $5,000,000
- Massachusetts: $2,000,000
- Minnesota: $3,000,000
- New York: $7,350,000
- Oregon: $1,000,000
- Rhode Island: $1,838,056
- Vermont: $5,000,000
- Washington: $3,076,000
Top rates in these jurisdictions generally run between 12% and 20%, with most landing around 16%. Several thresholds adjust for inflation each year.
New York deserves a specific warning. If a taxable estate exceeds 105% of the state exemption, the exemption disappears and the state taxes the full estate from the first dollar. An estate worth $7.35 million owes nothing. An estate worth $7.72 million can owe tax on the whole $7.72 million. Estate planners call this the New York cliff.
The 45 States With No Inheritance Tax
An inheritance tax is different from an estate tax. An estate tax is calculated once, on everything the deceased owned. An inheritance tax is charged to each person who receives something, and the rate turns on how closely related that person was to the deceased. Spouses and children typically owe nothing; distant relatives and unrelated beneficiaries face the highest rates.
Only five states charge one at all. Every other state — including all 38 with no estate tax, plus the estate-tax states not listed below — collects no inheritance tax. Iowa fully repealed its inheritance tax effective January 1, 2025, and it no longer applies to anyone who died on or after that date.2Iowa Legislature. Iowa Code 2025, Section 450.98
The Five States That Still Charge One
- Kentucky: rates up to 16% for non-exempt beneficiaries. Spouses, parents, children, grandchildren, and siblings are exempt.
- Maryland: a flat 10% on non-exempt transfers. Spouses, children, parents, grandparents, stepchildren, stepparents, and siblings are exempt. Maryland is the only state that charges both an estate tax and an inheritance tax.
- Nebraska: 1% for close relatives up to 18% for unrelated beneficiaries, the highest inheritance tax rate in the country. Only spouses are fully exempt.
- New Jersey: rates up to 16%. Spouses, domestic partners, parents, grandparents, children, stepchildren, and grandchildren are exempt.
- Pennsylvania: rates up to 15%. Spouses, and parents of a decedent who was 21 or younger, are exempt.
Because the tax follows the beneficiary rather than the estate, the executor has to classify each share by relationship and account for the tax before distributing anything. An executor who distributes first and sorts the tax out later can end up personally on the hook for what’s owed.
The States With Neither Tax
Combining the two lists, the states that impose no estate tax and no inheritance tax are: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Indiana, Iowa, 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, and Wyoming.
Kentucky and Nebraska have no estate tax but do have an inheritance tax. Pennsylvania and New Jersey are in the same position. Maryland is the only jurisdiction that charges both.
Property in Another State Can Still Be Taxed
Living in a state with no estate tax does not shield property you own elsewhere. Two concepts control which state can tax what.
Domicile is your permanent home. It controls the state law that applies to personal property such as bank accounts, investments, and retirement funds. When someone splits time between two states, domicile usually turns on where you vote, where you hold a driver’s license, where you file state income taxes, and where you actually spend your time.
Situs is where physical property sits. Real estate and tangible business assets are taxed by the state they’re located in, whatever your domicile says. A Florida resident who owns a vacation home in Massachusetts will find that home subject to Massachusetts estate tax if the full estate exceeds the $2 million Massachusetts threshold. Florida collects nothing; Massachusetts collects on the house.
That means an estate can owe returns in more than one state. Some states offer a credit for tax paid to another state on the same property, but the executor still has to file everywhere there is a valid claim. Families who assume their tax-free home state protects everything they own are the ones most often surprised by a bill from somewhere else.
The Federal Estate Tax Still Applies Everywhere
No state’s rules displace the federal estate tax. Every estate in the country falls under 26 U.S.C. § 2001, and for deaths in 2026 the basic exclusion is $15,000,000 per person, up from $13,990,000 in 2025.3Office of the Law Revision Counsel. 26 USC 2001 – Imposition and Rate of Tax4Internal Revenue Service. What’s New – Estate and Gift Tax Estates below the threshold generally do not file a federal return (Form 706). Amounts above are taxed at graduated rates topping out at 40%.
The $15 million figure reflects a change made by the One, Big, Beautiful Bill Act signed on July 4, 2025. The higher exemption from the 2017 Tax Cuts and Jobs Act had been set to expire at the end of 2025, which would have dropped the exemption to roughly $7 million. The new law made the elevated amount permanent, raised it to $15 million, and left it subject to inflation adjustments for 2027 and later.5Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
For the great majority of families, living in one of the 38 estate-tax-free states and inheriting from someone in one of the 45 inheritance-tax-free states means no death-related tax bill at any level. The exceptions are worth confirming: an estate above $15 million, property held in a taxing state, or a beneficiary in one of the five inheritance-tax states.