17 states with inheritance tax or inheritance tax
In Spanish | Most people don’t have to worry about federal inheritance tax, which excludes up to $ 11.7 million for individuals and $ 23.4 million for married couples in 2021 (vs. $ 11.58 million and $ 23.16 million, respectively, for tax year 2020). But 17 states and the District of Columbia can tax your estate, inheritance, or both, depending on the Tax foundation.
Eleven states have only one inheritance tax: Connecticut, Hawaii, Illinois, Maine, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont and Washington. Washington, DC does it too. Inheritance tax is levied on the value of a deceased’s property after debts have been paid. Maine, for example, does not levy any tax on the first $ 5.8 million of an estate, and taxes exceed that amount at a rate of 8 percent to a maximum of 12 percent.
Iowa, Kentucky, Nebraska, New Jersey, and Pennsylvania only have an inheritance tax, which is a tax on what you receive as the beneficiary of an estate. Kentucky, for example, taxes estates up to 16 percent. Spouses and certain other heirs are generally excluded by states from the payment of inheritance tax.
Maryland is the only state that levies both an inheritance tax and an inheritance tax.