16 States With Estate or Inheritance Taxes

The tax doesn’t apply if the person inheriting property is the deceased’s spouse, parent, child, grandchild or sibling (including half-siblings).

For heirs who are the deceased’s niece, nephew, daughter-in-law, son-in-law, aunt, uncle or great-grandchild, the first $1,000 of inherited property is exempt from tax. After that, the property they inherit is subject to a 4 percent to 16 percent inheritance tax. The higher the property’s value, the higher the rate.

For all other heirs, the first $500 of inherited property is exempt, but the rest is taxed at rates from 6 percent to 16 percent. Again, the rates increase as the value of the inherited property goes up.

Maine estate tax

At $7 million, Maine’s estate tax exemption is the third-highest in the nation for 2025 (up from $6.8 million in 2024).

For estates worth more than $7 million, Maine has three estate tax rates: 8 percent, 10 percent or 12 percent. The higher the taxable estate’s value, the higher the rate.

Maryland estate and inheritance taxes

Maryland is the lone state with both an estate tax and an inheritance tax.

Its estate tax exemption amount is $5 million, tied with Vermont for the fifth-highest state exemption in the U.S. For taxable estates that exceed the $5 million mark, Maryland’s estate tax rates start at 8 percent and run up to 16 percent.

Maryland’s inheritance tax is assessed at a flat 10 percent rate. However, the tax doesn’t apply to an heir who inherits property worth $1,000 or less. There’s also no tax due if the heir is the deceased’s spouse, parent, stepparent, grandparent, child, stepchild, grandchild (or other lineal descendant of a child), sibling, son-in-law, daughter-in-law or surviving spouse of a deceased child who hasn’t remarried.

Massachusetts estate tax

Your estate is more likely to be taxed in Massachusetts than in most other states on this list, since taxable estates worth more than $2 million may be subject to the state’s estate tax. That’s the third-lowest estate tax exemption in the country, and it isn’t adjusted from year to year to account for inflation.

Estate tax rates in Massachusetts run anywhere from 0.8 percent to 16 percent, depending on the value of the taxable estate.

Minnesota estate tax

Minnesota may tax estates worth more than $3 million. The state’s $3 million exemption amount, which isn’t adjusted annually for inflation, is the fifth-lowest among all states with an estate tax.

Minnesota’s estate tax rates run between 13 percent and 16 percent, depending on the taxable estate's value.

Nebraska inheritance tax

Nebraska’s inheritance tax doesn’t apply to property inherited by the deceased person’s spouse or by anyone 21 or younger.

Heirs who are close relatives of the deceased — including parents, grandparents, siblings, children and grandchildren — pay a 1 percent tax on inherited property worth more than $100,000.

Certain other relatives — including uncles, aunts, nieces and nephews — pay an 11 percent tax on property that’s worth more than $40,000.

For all other heirs, there’s a 15 percent tax on inherited property worth more than $25,000.

New Jersey inheritance tax

The first $500 of property inherited by any one person is exempt from the New Jersey inheritance tax. The tax also doesn’t apply to heirs who are certain relatives or partners of the deceased person, including a spouse, civil union partner, domestic partner, parent, grandparent, child, grandchild, or great-grandchild.

For certain other relatives, such as a deceased person’s sibling, son-in-law or daughter-in-law, the first $25,000 of inherited property is tax-free. After that, inheritance tax rates ranging from 11 percent to 16 percent apply.

For all other heirs, a 15 percent tax applies to the first $700,000 of inherited property, while the rate jumps to 16 percent for anything over that amount.

New York estate tax

New York’s $7.16 million estate tax exemption for 2025 (up from $6.94 million in 2024) is the second-highest in the country. Its estate tax rate starts at 3.06 percent and tops out at 16 percent, depending on the value of the taxable estate.

However, there’s a unique twist that can significantly boost the tax for certain estates called the New York “estate tax cliff.” By law, if the value of a taxable estate exceeds 105 percent of the exemption amount — which is $7.518 million for 2025 — the tax is imposed on the entire estate.

Oregon estate tax

Oregon’s estate tax exemption is only $1 million. That’s the lowest estate tax exemption in the nation, and it doesn’t change from year to year to account for inflation.

The estate tax rates run from 10 percent to 16 percent, depending on the taxable estate’s value.

Pennsylvania inheritance tax

As with other state inheritance taxes, who has to pay the Pennsylvania inheritance tax, and how much they pay, depends on the heir’s relationship to the deceased.

There’s no tax on property inherited by a surviving spouse, or by a parent if the deceased was 21 or younger. Property passing from a parent to a child is also exempt from the state’s inheritance tax if the child is 21 or younger. In addition, property inherited from someone who died as a result of an injury or illness while on active duty in the military is tax-free.

A 4.5 percent tax is imposed on heirs who are a parent, grandparent, child or grandchild of the deceased. The tax rate is 12 percent for a sibling. Everyone else who inherits property must pay a 15 percent inheritance tax.

Rhode Island estate tax

Rhode Island’s estate tax exemption is adjusted annually for inflation. The state has the second-lowest exemption in the country for 2025, clocking in at $1,802,431 (up from $1,774,583 for 2024).

Rhode Island’s estate tax rates range from 0.8 percent to 16 percent, depending on the taxable estate’s value.

Vermont estate tax

Vermont has a $5 million estate tax exemption, which is not adjusted annually to account for inflation. That’s tied with Maryland for the fifth-highest exemption amount in the nation.

The state’s estate tax rate is 16 percent. Vermont and Connecticut are the only states that impose a flat estate tax rate.

Washington estate tax

Estates in Washington may be subject to the state’s estate tax if they’re worth more than $2.193 million, the fourth-lowest exemption in the nation.

Washington’s estate tax rates run between 10 percent and 20 percent, depending on the value of the taxable estate. With its 20 percent rate, Washington is tied with Hawai‘i for the highest possible state estate tax rate in the U.S.

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