Estate and Gift Tax FAQ
Do some states impose estate tax?
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
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Connecticut Delaware District of Columbia Hawaii Illinois Maine Maryland |
Massachusetts Minnesota New Jersey New York North Carolina Ohio (repealed as of Jan. 1, 2013) |
Oregon Rhode Island Tennessee Vermont Washington Wisconsin (effective Jan. 1, 2013) |
Inheritance tax. Some 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
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Indiana Iowa Kentucky |
Maryland Nebraska New Jersey |
Pennsylvania
|
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