No Estate Tax States 2026

States With No Estate Tax

Some states do not impose a state-level estate tax, meaning estates are not taxed by the state before assets are distributed to beneficiaries. In these states, estate taxation is limited to federal law, if applicable.

States with no estate tax include Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Indiana, 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. In these jurisdictions, the absence of a state estate tax can simplify estate planning and reduce overall tax liability.

States With Estate Taxes

Some states impose a state-level estate tax, which applies to the total value of a deceased person’s estate before assets are distributed to beneficiaries. These taxes typically apply only to estates that exceed a certain exemption threshold set by state law.

States with estate taxes include Connecticut, the District of Columbia, Hawaii, Illinois, Maine, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. In these states, only the portion of an estate that exceeds the exemption threshold is subject to taxation, with exemption amounts and rates varying by jurisdiction.

States With Inheritance Taxes

Some states impose an inheritance tax, which is paid by beneficiaries on assets they receive from a deceased person. Unlike estate taxes, which are applied before distribution, inheritance taxes depend on the recipient and may vary based on factors such as relationship to the deceased.

States with inheritance taxes include Iowa, Kentucky, Nebraska, New Jersey, and Pennsylvania. In these states, tax rates and exemptions often differ depending on the beneficiary’s relationship to the decedent, with close relatives typically receiving more favorable treatment.

States With Both Estate and Inheritance Taxes

A small number of states impose both estate and inheritance taxes, meaning taxes may be applied both to the estate before distribution and to the assets received by beneficiaries. This dual structure can increase overall tax exposure depending on the size of the estate and the relationship between the decedent and the heirs.

Maryland is the only state that currently imposes both an estate tax and an inheritance tax. In Maryland, estates above the exemption threshold may be subject to estate tax, while certain beneficiaries may also owe inheritance tax on the assets they receive.