States with no estate or inheritance tax now cover most of the country. As of October 2026, 34 states charge neither tax when someone dies. Many families will be glad to hear it. However, 16 states and Washington, D.
C. still collect one tax or both. If you are planning ahead, the state you live in can change how much your loved ones keep. If you are settling an estate right now, the same answer tells you which state tax forms you may need to file and which you can skip. This guide walks you through it step by step, in plain English.
What Estate and Inheritance Taxes Actually Are
An estate tax is charged on the total value of everything a person owned when they died. The estate pays it before anything goes to the heirs. An “estate” is simply everything the person left behind. That includes a home, savings, investments, retirement accounts, and personal belongings.
An inheritance tax works differently. The person who receives the money pays it. The rate typically depends on how closely you were related to the person who died. For example, Pennsylvania charges a surviving spouse 0%. Children and grandchildren pay 4.5%, and brothers and sisters pay 12%. Most other heirs pay 15% (72 P.S. § 9116).
There is also a federal estate tax. However, very few families owe it. For deaths in 2026, the IRS exemption is $15 million per person, or $30 million for a married couple. The One Big Beautiful Bill Act set that amount in 2025. As a result, only very large estates owe federal estate tax. The IRS explains the rules on its estate tax page.
The full list of states with no estate or inheritance tax in 2026
Here are the 34 states with no estate or inheritance tax for deaths in 2026: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, and Wyoming.
Several of these states dropped their tax fairly recently. For example, Iowa fully phased out its inheritance tax for deaths on or after January 1, 2025. Delaware repealed its estate tax for deaths after December 31, 2017. Indiana ended its inheritance tax for deaths after December 31, 2012. Tennessee’s inheritance tax ended in 2016. If someone died before those dates, the old rules may still apply.
Living in one of the states with no estate or inheritance tax does not erase every tax. In most cases, the federal estate tax still applies above $15 million. Income tax can also apply to some inherited accounts, which we cover below.
States That Still Charge Estate or Inheritance Tax
Twelve states and D.C. charge an estate tax. Five states charge an inheritance tax. Maryland is the only state that charges both. State exemptions are often far lower than the federal $15 million. For example, Oregon taxes estates above just $1 million. In Massachusetts the line is $2 million. A paid-off home plus retirement savings can reach those amounts.
| State | Tax Type | 2026 Exemption or Key Rule |
|---|---|---|
| Connecticut | Estate | Matches federal exemption ($15 million) |
| Hawaii | Estate | $5.49 million |
| Illinois | Estate | $4 million |
| Maine | Estate | $7.16 million |
| Maryland | Both | $5 million estate; 10% inheritance tax on non-exempt heirs |
| Massachusetts | Estate | $2 million |
| Minnesota | Estate | $3 million |
| New York | Estate | $7.35 million |
| Oregon | Estate | $1 million |
| Rhode Island | Estate | About $1.84 million |
| Vermont | Estate | $5 million |
| Washington | Estate | About $3 million |
| Washington, D.C. | Estate | $4,988,400 |
| Kentucky | Inheritance | Spouse, children, parents, grandchildren, and siblings exempt |
| Nebraska | Inheritance | Close relatives pay 1% on amounts above $100,000 |
| New Jersey | Inheritance | Spouse, children, grandchildren, and parents exempt |
| Pennsylvania | Inheritance | 0% spouse; 4.5% children; 12% siblings; 15% others |
New York has an extra trap called the “cliff.” If an estate is more than 5% over the exemption, the whole estate can be taxed, not just the amount over the line. Figures change yearly, so check with each state’s revenue department.
Calm Next Steps for Your Family
First, confirm where the person lived when they died. Lawyers call this their “domicile,” which means their true, permanent home. That state’s rules generally apply to the estate. Typically, it does not matter where the heirs live. For example, if your mother lived in Florida and you live in New Jersey, New Jersey inheritance tax generally does not apply to what she left you.
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Second, look for real estate in other states. A cabin or rental property in a taxing state may need its own filing there. This can happen even if the owner lived in one of the states with no estate or inheritance tax.
Third, don’t make a big move just to avoid a tax. Moving changes many things, like health care, family support, and income taxes. If you are planning ahead, many families find it helpful to review their will or trust with a licensed attorney. A tax professional can also help. If you are settling an estate now, your county probate court’s self-help center is a good, free place to start.
Frequently Asked Questions
Does Florida have an estate or inheritance tax?
No. Florida is one of the states with no estate or inheritance tax. However, the federal estate tax still applies to estates over $15 million in 2026.
I live in a state with no inheritance tax. Do I still owe tax on an inheritance from Pennsylvania?
In most cases, yes. Inheritance tax typically follows the state where the person who died lived, not where you live. As a result, Pennsylvania’s rates can apply even if you live in Texas or Florida.
Do I pay income tax on money I inherit?
Generally, the inheritance itself is not counted as income. However, withdrawals from an inherited traditional IRA or 401(k) are usually taxed as income. That is true even in states with no estate or inheritance tax, so check with a tax professional before taking money out.
Make Sure Your Plan Actually Works
A will or trust only does its job if the rest of your plan lines up. Two quick checks before you finish:
- Get your state’s exact rules — witnesses, notary, probate cost, and tax thresholds vary by state.
- Beneficiary forms beat your will — make sure your life-insurance beneficiaries are current, because named beneficiaries pass outside your will.
Sources & How to Verify
This guide is built from official sources. Always confirm the exact figure for your state:
- IRS — Estate & Gift Tax: irs.gov
- USA.gov — What to do when someone dies: usa.gov/death
- Uniform Law Commission (probate): uniformlaws.org
- Cornell Legal Information Institute: law.cornell.edu
- Your state’s probate court self-help portal and revenue department for the current statute and dollar figures.
Verified October 2026. Estate figures change — if you spot anything outdated, please contact us.
Related Guides
- Wills by State
- Trusts & Living Trusts by State
- Estate & Inheritance Tax by State
- Plain-English Estate Glossary
Disclaimer. This page is for general information only and is not legal or tax advice. Wills, probate, and estate-tax rules vary by state, county, and situation, and change over time. We are not a law firm, tax advisor, or financial planner, and we assume no liability for accuracy or completeness. For your specific situation — especially an active probate or a tax deadline — verify with your state’s court, statute, revenue department, or a licensed attorney in your state.