{"id":396368,"date":"2026-05-18T07:54:55","date_gmt":"2026-05-18T12:54:55","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/?page_id=396368"},"modified":"2026-05-18T08:46:39","modified_gmt":"2026-05-18T13:46:39","slug":"navigating-state-inheritance-taxes","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/tax\/tax-laws-forms\/navigating-state-inheritance-taxes.html","title":{"rendered":"Navigating State Inheritance Taxes"},"content":{"rendered":"\n
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Navigating State Inheritance Taxes<\/h1>\n\n
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\n By J.P. Finet, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

State <\/span>inheritance tax<\/span> is the tax imposed by a state where the beneficiary or deceased individual lived. State <\/span>inheritance tax<\/span>\u00a0differs from\u00a0federal estate tax<\/span>\u00a0and is based on the\u00a0total value<\/span>\u00a0of assets inherited and the beneficiaries\u2019 relationship to the deceased.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

When it comes to so-called \u201cdeath taxes<\/span>,\u201d most discussion in the U.S. focuses on the\u00a0federal estate tax<\/span>,\u00a0with little mention of state estate and inheritance taxes<\/span>. Your estate is far more likely to be taxed at the state level<\/span> if you live in one of the 13 states that have an estate tax. That\u2019s because estates valued at up to $15 million ($30 million for married couples<\/span>) are not subject to the federal estate tax<\/span>, but estates as small as $2 million may be subject to state estate taxes<\/span>. There is no federal inheritance tax<\/span>, but five states levy the tax on inheritances as small as $1,000.<\/p>\n

The enactment of the Tax Cuts and Jobs Act in 2017 resulted in far fewer individual estates facing the federal estate tax<\/span>, as it raised the amount that was excluded from the tax from $5.5 million to just over $11 million. For married couples<\/span> filing jointly, the estate tax increased from $11 million to $22 million. The 2025 One Big Beautiful Bill Act increased the federal estate tax<\/span> exclusion again, to $15 million for individuals in 2026 and $30 million for married filing jointly. All of these numbers are adjusted annually for inflation.<\/p>\n

For wealthy taxpayers<\/span>, the increased federal estate tax<\/span> exemption<\/span> did not change their state estate and inheritance tax<\/span> obligations. To make matters more complicated, each state has its own estate and inheritance tax<\/span> rules. In the sections that follow, we will explain the differences between inheritance and estate taxes. We\u2019ll also look at the filing thresholds and tax brackets for each state that imposes one of the taxes. For most states, there is either an estate tax or an inheritance tax<\/span>, with Maryland<\/span> being the only state that imposes both.<\/p>\n

Estate Taxes vs. Inheritance Taxes<\/span><\/h2>\n

The primary difference between estate and inheritance taxes<\/span> is the party responsible for paying. Estate taxes are usually assessed on the total value<\/span> of an individual\u2019s estate after they have died and are paid by the estate itself. The estate tax is paid before the heirs receive their inheritance, thereby reducing the amount they receive. State <\/span>inheritance taxes<\/span> are commonly paid by the individual who receives an inheritance from an estate.<\/p>\n

The estate tax is collected based on the fair market value of the estate<\/span> at the time of the decedent<\/span>\u2019s death<\/span>. The decedent<\/span>\u2019s estate<\/span> is based on the deceased\u2019s:<\/p>\n