Estate planning reference
State estate and inheritance taxes for 2026
12 states and the District of Columbia tax estates, and 5 states tax inheritances. Most state exemptions are far below the federal one, so a family can owe state tax with no federal tax at all.
Updated 2026-10-21 · Gregory Garone, CEPA®
Short answer: For 2026 deaths, estate tax applies in Connecticut, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington. Inheritance tax applies in Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania. Maryland has both. Exemptions start at $1 million in Oregon, against a federal exemption of $15,000,000.
States with an estate tax
| State | 2026 exemption | Top rate | Portability |
|---|---|---|---|
| Connecticut | $15,000,000 | 12% | No |
| District of Columbia | $4,988,400 | 16% | No |
| Hawaii | $5,490,000 | 20% | Yes, of the Hawaii exclusion |
| Illinois | $4,000,000 | 16% | No |
| Maine | $7,160,000 | 12% | No |
| Maryland | $5,000,000 | 16% estate; 10% inheritance | Yes |
| Massachusetts | $2,000,000 | 16% | No |
| Minnesota | $3,000,000 | 16% | No |
| New York | $7,350,000 | 16% | No |
| Oregon | $1,000,000 | 16% | No |
| Rhode Island | $1,838,056 | 16% | No |
| Vermont | $5,000,000 | 16% | No |
| Washington | $3,076,000 (deaths Jan. to June 2026) | 35% before July 1; 20% after | No |
States with an inheritance tax
Inheritance tax depends on who receives the property. Every one of these states exempts a surviving spouse.
- Kentucky: top rate 16%
- Maryland: top rate 10%
- Nebraska: top rate 15%
- New Jersey: top rate 16%
- Pennsylvania: top rate 15%
Iowa's inheritance tax does not apply to deaths on or after January 1, 2025.
Common questions
Which states have an estate tax in 2026?
Twelve states and the District of Columbia: Connecticut, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington.
Which states have an inheritance tax in 2026?
Five: Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania. Iowa's inheritance tax does not apply to deaths on or after January 1, 2025.
What is the difference between an estate tax and an inheritance tax?
An estate tax is charged on the whole estate before it is distributed, and the estate pays it. An inheritance tax is charged on what each person receives, and the rate depends on that person's relationship to whoever died.
Can I owe state estate tax without owing federal estate tax?
Yes. The federal exemption is $15,000,000 for 2026, but most state exemptions are far lower, starting at $1 million in Oregon. An estate can owe state tax with no federal tax at all.
Do I owe estate tax to a state I do not live in?
You can. Most estate-tax states tax real estate and tangible property located in the state even when the owner lived elsewhere.