Yes. Even if your estate isn't big enough to owe federal estate tax, the state may still take a bite.
Estate tax. Until recently, most states didn't impose their own estate tax; instead, they took a share of the federal estate tax paid by large estates. However, because states no longer get a share of federal estate tax, some states are collecting tax from estates that aren't big enough to owe any federal tax to get back some of what they're losing. So far, almost half the states have changed their laws so they can keep collecting estate tax. But the tax rate is generally far less than the federal estate tax rate.
For example, in New Jersey, Rhode Island, and Wisconsin, 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.
Inheritance tax. Some other states impose a separate tax, called an inheritance tax, on a deceased person's property. The tax rate depends on who inherits the property; usually, spouses and other close relatives pay nothing or a low rate.