Estate and Gift Tax FAQ

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.

State 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 Oregon, estates worth more than $1 million 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.

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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