Estate and Gift Tax FAQ

Do some states impose estate tax?

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Questions:

Answer:

Do some states impose estate tax?

Yes. Even if your estate isn't big enough to owe federal estate tax, the state may still take a bite.

Estate tax. Some states collect tax from estates that aren't big enough to owe any federal tax. The tax rate is generally far less than the federal estate tax rate.

For example, in New Jersey, estates worth more than $675,000 may owe state estate tax. Property left to a surviving spouse, however, is exempt from state estate tax, just as it is exempt from federal estate tax.

More information on each state's estate tax.

States That Impose Estate Tax

Connecticut

Delaware

District of Columbia

Hawaii

Illinois

Maine

Maryland

Massachusetts

Minnesota

New Jersey

New York

North Carolina (repealed Jan. 1, 2013)

Ohio (repealed Jan. 1, 2013)

Oregon

Rhode Island

Tennessee

Vermont

Washington

 

Inheritance tax. A few states impose a separate tax, called an inheritance tax, on a deceased person's property. The rate depends on who inherits the property; usually, property that passes to spouses and other close relatives is not taxed or is taxed at a very low rate.

More information on each state's inheritance tax.

States That Impose Inheritance Tax

Iowa

Kentucky

Maryland

Nebraska

New Jersey

Pennsylvania

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