State Death Taxes: Estate, Inheritance, and Gift Taxes
By Thomas Hootman, J.D. | Reviewed by Steven J. Ellison, Esq. | Last updated June 03, 2022
When someone dies, their property (known as their “estate") is divided according to their will or, when a will does not exist, according to their state's laws of intestate succession. Either way, when an estate is distributed (“probated"), it may be subject to estate and inheritance taxes.
Estate taxes are paid directly by the deceased person's estate. Inheritance taxes are paid by individuals receiving a portion of the estate (heirs and beneficiaries). Occasionally, people also include taxable gifts as part of their estate planning.
Tax Law: Federal vs. State
The federal government does not impose an inheritance tax, only a federal estate tax. However, because the federal estate tax exemption is set at over $12 million, most people do not need to worry. That said, be sure to check if the federal gift tax applies in your case. For more on these topics, see Estate and Gift Tax: An Overview, Federal Estate and Gift Tax Laws, and Reducing Estate Tax—Gifts.
What about state-level taxes? Currently, twelve states (plus the District of Columbia) impose an estate tax: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. Further, six states impose an inheritance tax: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Finally, Connecticut is the only state that imposes a gift tax.
The table below is a guide to relevant state laws across the country. It also includes links to Findlaw's estate planning pages for each state.
State-Specific Estate Planning Page |
State Estate Tax? (Yes/No) |
State Inheritance Tax? (Yes/No) |
State-Specific Estate & Inheritance Tax Laws |
N |
N |
Alabama Code, Title 40. Revenue and Taxation
|
|
N |
N |
Alaska Statutes, Title 43, Chapter 31. Estate Tax Law of Alaska |
|
N |
N |
Arizona Revised Statutes, Title 42. Taxation |
|
N |
N |
Arkansas Code, Title 26. Taxation (specifically § 26-59-108) |
|
N |
N |
California Code, Revenue and Taxation Code, Division 2. Other Taxes
|
|
N |
N |
Colorado Revised Statutes, Title 39. Taxation, Specific Taxes, Estate and Inheritance and Succession Tax
|
|
Y |
N |
Connecticut General Statutes, Title 12. Taxation
More info: Estate Taxes, Gift Taxes |
|
N |
N |
Delaware Code, Title 30. State Taxes, Part II. Income, Inheritance and Estate Taxes
|
|
Y |
N |
District of Columbia Code, Division VIII. General Law, Title 47. Taxation, Licensing, Permits, Assessments, and Fees, Chapter 37. Inheritance and Estate Taxes More info: Estate Taxes |
|
N |
N |
Florida Statutes, Title XIV. Taxation and Finance, Chapter 198. Estate Taxes |
|
N |
N |
Georgia Code, Title 48. Revenue and Taxation, Chapter 12. Estate Tax (specifically § 48-12-1) |
|
Y |
N |
Hawaii Revised Statutes, Division 1. Government, Title 14. Taxation
More info: Estate Taxes |
|
N |
N |
Idaho Statutes
|
|
Y |
N |
Illinois Statutes, Chapter 35. Revenue, Estate Taxes—Act 405. Illinois Estate and Generation-Skipping Transfer Tax Act More info: Estate Taxes |
|
N |
N |
Indiana Code, Title 6. Taxation
|
|
N |
Y |
Iowa Code, Title X. Financial Resources, Subtitle 3. Inheritance Taxes
More info: Inheritance Taxes |
|
N |
N |
Kansas Statutes, Chapter 79. Taxation, Article 15. Death Taxes
|
|
N |
Y |
Kentucky Revised Statutes, Title XI. Revenue and Taxation, Chapter 140. Inheritance and Estate Taxes More info: Inheritance Taxes |
|
N |
N |
Louisiana Revised Statutes, Title 47. Revenue and Taxation, Subtitle IV. Miscellaneous Taxes, Chapter 1. Inheritance and Estate Taxes |
|
Y |
N |
Maine Revised Statutes, Title 36. Taxation, Part 6. Inheritance, Succession and Estate Taxes
More info: Estate Taxes |
|
Y |
Y |
Maryland Code, Tax–General, Title 7. Death Taxes
More info: Estate and Inheritance Taxes |
|
Y |
N |
Massachusetts General Laws, Part I. Administration of the Government, Title IX. Taxation
More info: Estate Taxes |
|
N |
N |
Michigan Compiled Laws, Chapter 205. Taxation, Michigan Estate Tax Act
|
|
Y |
N |
Minnesota Statutes, Various State Taxes and Programs, Chapter 291. Estate Tax More info: Estate Taxes |
|
N |
N |
Mississippi Code, Title 27. Taxation and Finance
|
|
N |
N |
Missouri Revised Statutes Title X. Taxation and Revenue, Chapter 145. Estate Tax (formerly Inheritance Tax) |
|
N |
N |
Montana Code Annotated, Title 15. Taxation, Chapter 30. Individual Income Tax, Part 21. Rate and General Provisions
|
|
N |
Y |
Nebraska Revised Statutes, Chapter 77. Revenue and Taxation
More info: Inheritance Taxes |
|
N |
N |
Nevada Revised Statutes, Title 32. Revenue and Taxation
|
|
N |
N |
New Hampshire Statutes, Title V. Taxation
Note: The links lead to the New Hampshire Statutes compiled by the General Court of New Hampshire. |
|
N |
Y |
New Jersey Statutes, Title 54. Taxation, Subtitle 5. Transfer Inheritance and Estate Taxes
More info: Inheritance Taxes |
|
N |
N |
New Mexico Statutes, Chapter 7. Taxation, Article 7. Estate Tax |
|
Y |
N |
New York Consolidated Laws, Tax Law, Article 26. Estate Tax More info: Estate Taxes |
|
N |
N |
North Carolina General Statutes, Chapter 105. Taxation, Subchapter I. Levy of Taxes |
|
N |
N |
North Dakota Century Code, Title 57. Taxation, Chapter 57–31.7. Estate Tax |
|
N |
N |
Ohio Revised Code, Title LVII. Taxation, Chapter 5731. Estate Tax |
|
N |
N |
Oklahoma Statutes, Title 68. Revenue and Taxation, §§ 68-801–827. Inheritance or Transfer Taxes Note: The link leads to the Oklahoma Statutes compiled by the Oklahoma State Legislature. The compilation is available in Word. The relevant sections are listed as “repealed." |
|
Y |
N |
Oregon Revised Statutes Title 12. Probate Law, Chapter 118. Estate Tax More info: Estate Taxes |
|
N |
Y |
Pennsylvania Statutes, Title 20 Pa.C.S.A. Decedents, Estates and Fiduciaries, Chapter 37. Apportionment of Death Taxes More info: Inheritance Taxes |
|
Y |
N |
Rhode Island General Laws, Title. 44. Taxation
More info: Estate Taxes |
|
N |
N |
South Carolina Code of Laws, Title 12. Taxation, Chapter 16. Estate Tax Note: The link leads to the South Carolina Code of Laws compiled by the South Carolina Legislature. The compilation is available in HTML and Word. |
|
N |
N |
South Dakota Codified Laws, Title 10. Taxation
Note: The link leads to the South Dakota Codified Laws compiled by the South Dakota State Legislature. The relevant sections are listed as “repealed." |
|
N |
N |
Tennessee Code, Title 67. Taxes and Licenses, Chapter 8. Transfer Taxes
|
|
N |
N |
Texas Estates Code, Title 2. Estates of Decedents; Durable Powers of Attorney, Subtitle C. Passage of Title and Distribution of Decedents' Property in General, Chapter 124. Valuation and Taxation of Estate Property
|
|
N |
N |
Utah Code, Title 59. Revenue and Taxation, Chapter 11. Inheritance Tax Act |
|
Y |
N |
Vermont Statutes, Title 32. Taxation and Finance, Subtitle 2. Taxation, Part 4. Inheritance, Transfer and Estate Taxes
More info: Estate Taxes |
|
N |
N |
Virginia Code, Title 58.1 Taxation, Subtitle I. Taxes Administered by the Department of Taxation, Chapter 9. Virginia Estates Tax Article 1. Substantive Provisions Generally Article 2. Payment of Death Taxes Due by Nonresident Decedents to Other States Article 3. Interstate Compromise and Arbitration of Death Taxes Article 4. Recapture Tax on Certain Use Valuations Article 5. Generation Skipping Transfers |
|
Y |
N |
Washington Revised Code, Title 83. Estate Taxation More info: Estate Taxes |
|
N |
N |
West Virginia Code, Chapter 11. Taxation
|
|
N |
N |
Wisconsin Statutes—Taxation, Chapter 72. Estate Tax |
|
N |
N |
Wyoming Statutes
|
A Local Estate Planning Attorney Can Help
Effective estate planning includes effective tax planning. Because the tax rules governing your estate when you die can be extremely complex, it may be a good idea to consult with a local tax or estate planning attorney. Whether you owe money to the IRS or a state tax authority, are uncertain about tax rates, or are simply looking to reduce your tax bill, a lawyer's assistance can help.
Can I Solve This on My Own or Do I Need an Attorney?
- DIY is possible in some simple cases
- Complex estate planning situations usually require a lawyer
- A lawyer can reduce the chances of a family dispute
- You can always have an attorney review your forms
Get tailored advice and ask your legal questions. Many attorneys offer free consultations.
