16 States With Estate or Inheritance Taxes

For heirs who are a niece, nephew, daughter-in-law, son-in-law, aunt, uncle or great-grandchild of the deceased, 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 ranging from 6 percent to 16 percent. Again, the rates increase as the value of the inherited property goes up.

Maine estate tax

At $7.16 million, Maine’s estate tax exemption is the third-highest in the nation for 2026 (up from $7 million in 2025).

For estates worth more than $7.16 million, Maine has three estate tax rates: 8 percent, 10 percent and 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 0.8 percent and run up to 16 percent.

Maryland’s inheritance tax is assessed at a flat 10 percent rate, but the tax does not apply to an heir who inherits property worth $1,000 or less. There’s also no tax due if the heir is the 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, 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 is not adjusted for inflation from year to year.

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 is not adjusted annually for inflation, is the fourth-lowest among states with an estate tax.

Minnesota’s estate tax rates range from 13 percent to 16 percent, depending on the taxable estate’s value.

Nebraska inheritance tax

Nebraska’s inheritance tax does not 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. And the tax does not 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 the 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; the rate jumps to 16 percent for anything over that amount.

New York estate tax

New York’s $7.35 million estate tax exemption for 2026 (up from $7.16 million in 2025) 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.” If the value of a taxable estate exceeds 105 percent of the exemption amount — which is $7,717,500 for 2026 — the tax is imposed on the entire estate.

Oregon estate tax

Oregon’s estate tax exemption is $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, the heir’s relationship to the deceased dictates who has to pay the Pennsylvania inheritance tax and how much they pay.

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 2026, clocking in at $1,838,056 (up from $1,802,431 for 2025).

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 $3.076 million, the fifth-lowest exemption in the nation.

Washington’s estate tax rates run from 10 percent to 35 percent, depending on the value of the taxable estate. With its 35 percent rate, Washington has the highest possible state estate tax rate in the U.S.

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