A number of states impose estate taxes on any real estate owned by a decedent within the state, and on the personal property of deceased residents of the state. One tax rate may apply to all assets in the estate, or the rate may vary depending upon who receives what property. For example, a state may impose a lower tax rate on property left to a child, as compared with property left to a distant cousin. It is important to note that a few states are in the process of phasing out their estate tax systems.
In states that carry inheritance tax laws, taxes must be paid by the person who receives inherited property (as opposed to estate taxes which are paid from the decedent's estate). Inheritance tax exemptions and rates may vary depending on who received the property, i.e. the decedent's spouse may be taxed at a lower rate than would be a friend of the decedent. A number of states are phasing out their inheritance tax systems.
Keep in mind that most states, even if technically carrying estate or inheritance tax laws, in practice follow what is known as a "pickup" system of taxation at the time of the decedent's death. Under this system, while a state tax return must be filed on behalf of the estate (or by a recipient who inherits property), the state's share of the tax comes out of what the estate is already paying the IRS. In other words, in most states no tax will need to be paid beyond the amount that is already being paid to the federal government.
In the table below, where applicable you will find links and citations to estate, inheritance, and similar taxation laws for all 50 states and the District of Columbia. Visit FindLaw's Estate Planning section for additional articles and resources.
AlabamaTitle 40, Section 15 Estate and Inheritance Tax Title 40, Section 15A Generation-Skipping Transfer Tax
Alaska Title 43, Chapter 31 Estate Tax Arizona Title 42 Taxation Arkansas Title 26, Chapter 59 Estate Taxes California California Revenue and Taxation Code, Division 1, Part 10, Chapter 9 Estates, Trusts, Beneficiaries, and Decedents Colorado Title 39, Article 23-24 Estate and Inheritance and Succession Tax ConnecticutTitle 12, Chapter 216 Succession and Transfer Taxes Title 12, Chapter 216a Generation-Skipping Transfer Tax Title 12, Chapter 217 Estate Tax Title 12, Chapter 218 Federal and State Estate Taxes Title 12, Chapter 218a Estate Income Tax
Delaware Title 30, Chapter 13 Inheritance Title 30, Chapter 14 Gift Tax Title 30, Chapter 15 Estate Tax Title 30, Chapter 16 Pass-Through Entities, Estates and Trusts Title 30, Chapter 17 Interstate Compromise or Arbitration of Death Taxes District of Columbia Title 47, Chapter 37 Inheritance and Estate Taxes Florida Title XIV, Chapter 198 Estate Taxes Georgia Chapter 48-12 Hawaii Chapter 236D Estate and Transfer Tax IdahoChapter 63-3024 Individuals' Tax and Tax on Estates and Trusts Chapter 63-3022L Individuals who are Officers, Directors, Shareholders, Partners or Members of a Corporation or Partnership or Beneficiaries of a Trust or Estate
Illinois 35 ILCS 405 Illinois Estate and Generation-Skipping Transfer Tax Act Indiana Title 6, Article 4.1 Death Taxes IowaTitle X, Chapter 450 Inheritance Tax Title X, Chapter 450A Generation Skipping Transfer Tax Title X, Chapter 450B Qualified Use Inheritance Tax
Kansas Chapter 79, Article 15 Death Taxes Kentucky Title XI, Chapter 140 Inheritance and Estate Taxes Louisiana Title 47, Section 181 Imposition of Tax on Estates and Trusts Maine Title 36, Chapters 551-575 Inheritance, Succession and Estate Taxes Maryland Tax-General, Title 7 Death Taxes MassachusettsTitle IX, Chapter 65 Taxation of Legacies And Successions Title IX, Chapter 65A. Taxation of Transfers of Certain Estates. Title IX, Chapter 65B Settlement of Disputes Respecting the Domicile of Decedents for Death Tax Purposes. Title IX, Chapter 65C Massachusetts Estate Tax.
Michigan Chapters 205.201 - 205.256 Michigan Estate Tax Act Minnesota Chapter 291 Estate Tax Chapter 292 Gift Taxes Mississippi Title 27, Chapter 9 Estate Tax Missouri Title X, Chapter 145 Estate Tax (formerly Inheritance Tax) MontanaChapter 15-30-2151 Tax on beneficiaries or fiduciaries of estates or trusts Chapter 15-30-2152 Computation of income of estates or trusts -- exemption Chapter 15-30-2153 Determination of tax of estates and trusts Chapter 15-30-2154 Estates and trusts tax remedies.
Nebraska Chapters 77-2001 - 77-2116 Inheritance Tax; Estate Tax; Generation-Skipping Transfer Tax NevadaTitle 32, Chapter 375A Tax on Estates Title 32, Chapter 375B Generation-Skipping Transfer Tax
New Hampshire Title V Chapter 87 Taxation of Transfers of Certain Estates Title V, Chapter 88-A Uniform Estate Tax Apportionment Act Chapter Title V, Chapter 90 Settlement of Disputes Respecting the Domicile of Decedents for Death Tax Purposes New Jersey Inheritance and Estate Tax Overview New Mexico Chapter 7, Article 7 Estate Tax New York Tax, Article 26 Estate Tax Tax, Article 26-B Generation-Skipping Transfer Tax North Carolina Chapter 105, Article 1A Estate Taxes North Dakota Chapter 57-37.1 Estate Tax (PDF) Ohio Title LVII, Chapter 5731 Estate Tax Oklahoma Sections 68-801 - 68-827 Inheritance or Transfer Taxes Oregon Chapter 118 Inheritance Tax Pennsylvania Title 20, Chapter 37 Apportionment of Death Taxes Rhode IslandChapter 44-22 Estate and Transfer Taxes - Liability and Computation Chapter 44-23 Estate and Transfer Taxes - Enforcement and Collection Chapter 44-23.1 Uniform Estate Tax Apportionment Chapter 44-24 Gift Tax
South Dakota Title 10, Chapter 40 Imposition And Amount Of Inheritance Tax Title 10, Chapter 40A Estate Tax Title 10, Chapter 41 Administration And Collection Of Inheritance Tax South Carolina Title 12, Chapter 16 Estate Tax Tennessee Title 67, Chapter 8 Transfer Taxes Texas Tax Code, Subtitle J, Chapter 211 Inheritance Taxes Utah Title 59, Chapter 11 Inheritance Tax Act VermontTitle 32, Chapter 185 Interstate Arbitration of Death Taxes Title 32, Chapter 187 Interstate Compromise of Death Taxes Title 32, Chapter 189 Uniform Estate Tax Apportionment Act Title 32, Chapter 190 Estate and Gift Taxes
Virginia Title 58.1, Chapter 9 Virginia Estate Tax Washington Titles 83 Estate Taxation West Virginia Chapter 11, Article 11 Estate Taxes Wisconsin Chapters 72 Estate Tax Wyoming Title 39, Chapter 19 Inheritance TaxesThe intersection between property and tax laws is extraordinarily complex and a lawyer's assistance can help avoid critical missteps. If you're in the midst of estate planning, or an estate tax is threatening your inheritance, it's a good idea to contact a local tax attorney to learn how to protect your assets.
