Estate Tax: What It Is and -How It Works
Estate tax is a tax on the transfer of property from a deceased person’s estate to their heirs. Learn about the differences between estate tax and inheritance tax, and which states have estate tax laws.
The List: States with Estate Tax
Curious about which states have estate tax? Here’s a comprehensive list, including each state’s threshold and tax rate.
- Connecticut: Connecticut has an estate tax with a threshold of $7.1 million in 2022. The tax rate starts at 10% and goes up to 12% for estates over $15 million.
- Hawaii: Hawaii has an estate tax with a threshold of $5.9 million in 2022. The tax rate starts at 10% and goes up to 20% for estates over $10.9 million.
- Illinois: Illinois has an estate tax with a threshold of $5.9 million in 2022. The tax rate starts at 0.8% and goes up to 16% for estates over $10 million.
- Maine: Maine has an estate tax with a threshold of $5.9 million in 2022. The tax rate starts at 8% and goes up to 12% for estates over $8 million.
- Maryland: Maryland has an estate tax with a threshold of $5 million in 2022. The tax rate starts at 0.8% and goes up to 16% for estates over $15 million.
- Massachusetts: Massachusetts has an estate tax with a threshold of $1 million in 2022. The tax rate starts at 0.8% and goes up to 16% for estates over $10 million.
- Minnesota: Minnesota has an estate tax with a threshold of $3 million in 2022. The tax rate starts at 13% and goes up to 16% for estates over $10 million.
- New York: New York has an estate tax with a threshold of $5.9 million in 2022. The tax rate starts at 3.06% and goes up to 16% for estates over $10.1 million.
- Oregon: Oregon has an estate tax with a threshold of $1 million in 2022. The tax rate starts at 10% and goes up to 16% for estates over $15 million.
- Rhode Island: Rhode Island has an estate tax with a threshold of $1,595,156 in 2022. The tax rate starts at 0.8% and goes up to 16% for estates over $10.1 million.
- Vermont: Vermont has an estate tax with a threshold of $5.9 million in 2022. The tax rate starts at 0.8% and goes up to 16% for estates over $10.1 million.
- Washington: Washington has an estate tax with a threshold of $2.217 million in 2022. The tax rate starts at 10% and goes up to 20% for estates over $9.999 million.
- Washington, D.C.: Washington, D.C. has an estate tax with a threshold of $5.93 million in 2022. The tax rate starts at 0.8% and goes up to 16% for estates over $16.03 million.
Inheritance Tax: Not to Be Confused with Estate Tax
Inheritance tax is different from estate tax and is levied on the beneficiaries of an estate. Learn about which states have inheritance tax laws and how they work.
Estate tax is a tax on the transfer of property from a deceased person’s estate to their heirs. Unlike an inheritance tax, which is based on the relationship between the deceased and the beneficiary, estate tax is based on the total value of the estate. In the United States, the federal government imposes an estate tax, and some states also have their own estate tax laws. In this article, we will list all the states with estate tax.
Final Thoughts
We hope this page provides comprehensive information about estate tax laws in the US. It presents a list of all the states with estate tax laws, including the respective thresholds and tax rates. Additionally, it distinguishes estate tax from inheritance tax, and explains the differences between the two. Best of luck with your taxes!
