Estate and Inheritance Tax by State: The Complete 2026 Map

13 jurisdictions (12 states + DC) levy an estate tax. 6 states have an inheritance tax. Maryland is the only state with both. The remaining 33 states have neither. State estate tax exemptions range from $1 million (Oregon) to $13.6 million (Connecticut) — and the gap between state and federal exemptions means many estates that owe no federal estate tax still face a state bill.

States With an Estate Tax

Estate tax is paid by the estate before assets are distributed to heirs. The tax applies to the total value of the estate above the exemption threshold. Most states use graduated rates.

States With an Inheritance Tax

Unlike estate tax (paid by the estate), inheritance tax is paid by the individual heirs who receive assets. The rate typically depends on the heir's relationship to the deceased — spouses are almost always exempt, children usually pay lower rates, and unrelated heirs pay the highest rates.

Estate Tax vs. Inheritance Tax: What's the Difference

These two taxes are commonly confused, but they work differently:

• Estate tax is levied on the total value of a deceased person's estate before any distribution to heirs. The estate itself pays the tax. Exemptions are based on the estate's total value.
• Inheritance tax is levied on individual heirs based on what they receive. Each heir pays tax on their share. Rates depend on the heir's relationship to the deceased — closer relatives typically pay lower rates or are exempt.
• Maryland is unique — it is the only state that imposes both an estate tax and an inheritance tax. The estate first pays estate tax on amounts above the $5M exemption, then heirs may also owe inheritance tax on their shares.

At the federal level, only an estate tax applies (no federal inheritance tax). The 2026 federal exemption is $13.61 million per individual ($27.22 million per married couple). Many estates that owe no federal tax are still subject to state estate tax due to much lower state exemptions.

States With the Lowest Exemptions

The gap between federal and state estate tax exemptions creates a significant planning challenge. These states have the lowest exemptions, catching estates that would owe nothing federally:

• Oregon ($1M): The lowest estate tax exemption in the nation. A married couple's home equity alone can trigger this tax. With Portland-area median home prices above $500K, many middle-class families are affected.
• Rhode Island ($1.7M): The second-lowest exemption. Combined with Rhode Island's relatively high overall tax burden (10.8%), this makes estate planning essential for homeowners.
• Massachusetts ($2M): Notably, Massachusetts has a "cliff" — if the estate exceeds $2M, the entire estate is taxed from dollar one, not just the amount above $2M. This means an estate of $2.1M can face a tax bill of over $100,000.
• Washington ($2.2M): Combined with the highest top rate (20%, tied with Hawaii), Washington's estate tax can be one of the most expensive in the nation for large estates.

How to Plan Around State Estate Tax

Estate tax planning is complex and benefits from professional guidance. Common strategies include:

• Relocate to a no-estate-tax state: 33 states have no estate or inheritance tax. Establishing domicile in one of these states before death eliminates state estate tax. Florida, Texas, and Nevada are popular choices.
• Irrevocable trusts: Assets placed in an irrevocable trust are generally removed from the taxable estate. The trust must be established well before death — most states look back 1-3 years for transfers made "in contemplation of death."
• Annual gifting: The federal annual gift exclusion ($18,000 per recipient in 2026) allows gradual transfer of wealth outside the estate. This is especially useful in low-exemption states like Oregon and Massachusetts.
• Life insurance trusts: An irrevocable life insurance trust (ILIT) holds a life insurance policy outside the estate, providing liquidity for heirs to pay estate taxes without selling assets.
• Spousal transfers: Unlimited spousal transfers are exempt from estate tax in all states. Proper use of portability (carrying a deceased spouse's unused federal exemption) can effectively double the exemption for married couples.

For a detailed breakdown of estate tax by state, see the Tax Foundation's estate tax data and IRS estate tax guidance.

The Federal Estate Tax Sunset

The current federal estate tax exemption of $13.61 million is set to sunset after 2025 under the Tax Cuts and Jobs Act (TCJA). If Congress does not extend it, the exemption would revert to approximately $7 million (adjusted for inflation). This would make state estate taxes even more significant, as more estates would face both federal and state liability.

As of 2026, Congress has not yet acted definitively on the TCJA sunset provisions. Estate planning should account for both scenarios — the current high exemption and a potential reduction.

Complete State Map: Estate and Inheritance Tax

For a sortable ranking of all 50 states by estate and inheritance tax, visit our estate and inheritance tax ranking page.

Frequently Asked Questions