Estate Tax by State: Which States Tax Estates in 2026

Twelve states and the District of Columbia charge their own estate tax, and five states charge an inheritance tax. Maryland charges both. The state tax usually starts at a much lower amount than the federal exclusion of $15,000,000 for 2026 deaths, so an estate can owe nothing to the IRS and still owe a state. This guide lists the states, their thresholds and due dates, and how to tell which state's tax applies.

What is the difference between an estate tax and an inheritance tax?

An estate tax is charged on the overall value of the estate and paid by the estate before heirs receive anything. An inheritance tax is charged on what each heir receives and depends on how closely the heir is related to the person who died. Spouses and children usually pay the least, and unrelated heirs pay the most.

The federal government charges only an estate tax. Our guide to the federal estate tax covers the federal exclusion, the 40% rate and Form 706.

Which states have an estate tax?

The Tax Foundation's count, with data as of October 1, 2025, is 12 states and DC. The table shows each state's threshold, using the state's own 2026 figure where the state publishes it. "Top rate" is the highest bracket.

Connecticut, Maine, Maryland, Minnesota, New York, Vermont and Washington figures come from state statutes or state revenue sites. The thresholds for Hawaii, Illinois, Massachusetts, Oregon and Rhode Island, and the top rates for DC, Hawaii, Illinois, Massachusetts, New York, Oregon and Rhode Island, come from the Tax Foundation. A state may have changed its law after late 2025, so confirm the figure with the state before you rely on it.

Thresholds don't work the same way everywhere. In most states the tax applies to the amount above the threshold. New York is different: an estate that goes well over the threshold loses the benefit of it, as explained below.

What changed in Washington?

Washington raised its exclusion to $3,000,000 and its rates for deaths on or after July 1, 2025, with a top rate of 35% on taxable amounts over $9,000,000. The state's statute and Department of Revenue tables show that table applies only to deaths from July 1, 2025 through June 30, 2026. For deaths on or after July 1, 2026, the statute sets a different table with a top rate of 20%. The exclusion for deaths from January 1 to June 30, 2026 was $3,076,000, and it is $3,000,000 from July 1, 2026. Always use the table for the date of death.

Which states have an inheritance tax?

Five states do: Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania. Iowa repealed its inheritance tax for deaths on or after January 1, 2025.

Which state's tax applies?

It depends on where the person lived and where they owned property. The rule states use is similar:

• Residents: the state of residence, called the domicile, can tax the estate, subject to its own rules for property located elsewhere.
• Nonresidents: a state can tax real estate and tangible personal property located inside it. New York, for example, says a nonresident's estate must file a New York return if it includes real or tangible property in New York and the federal gross estate plus gifts is above New York's exclusion. Washington and Connecticut have similar rules.

So a person who lived in a state with no estate tax can still leave an estate that owes tax to the state where a vacation home sits. If the person owned property in more than one state, ask a probate or tax attorney which returns are needed. You may also need a separate probate case, called ancillary probate, in the second state. Our guide to joint ownership and death explains how joint ownership affects what goes through probate.

What are the deadlines?

Several states follow the federal nine-month schedule, but not all do. These due dates come from state statutes or revenue department pages:

An extension to file usually isn't an extension to pay. Washington says unpaid tax accrues daily interest after nine months, and the IRS says the same about the federal return. New York can allow a longer payment extension in cases of undue hardship. If the state tax is large, ask the state about payment options before the date passes.

What special rules catch families out?

• New York's cliff. New York's basic exclusion is $7,350,000 for 2026. If the taxable estate goes over the exclusion by less than 5%, the credit is reduced on a sliding scale. At 105% of the exclusion, which is $7,717,500 for 2026, the credit is gone, and the tax is computed on the whole estate. The ET-706 instructions include a worksheet for it.
• Gifts counted again. New York adds back taxable gifts made in the three years before death. Minnesota adds back taxable gifts made within three years, Maine within one year, and Vermont within two years. A late gift might not shrink the estate for state purposes.
• Federal rules don't carry over automatically. Maryland lets a surviving spouse use the deceased spouse's unused Maryland exclusion. Not every state has a similar election, so check yours.
• A federal return as a starting point. New York says a completed federal return must be submitted with the state return, even when the estate is below the federal filing threshold. DC lists a complete copy of Form 706 among the documents to attach.
• State tax is deductible federally. The tax code lets the estate deduct state death taxes actually paid, which matters if the estate also owes federal tax.

What documents does the executor need?

Most states want the same core paperwork. Gather these in one folder:

• certified death certificates (see how many you need)
• the will and any trust documents, and the court's letters of authority
• appraisals of real estate, a business, art or jewelry, dated to the date of death
• statements for every account, with balances on the date of death
• a federal Form 706 or pro forma copy when the state requires it
• records of debts, funeral costs and administration expenses

Our estate inventory checklist helps you build the list, and our guide to what an executor does covers the bigger picture.

What to do next

1. Add up the gross estate, including life insurance, retirement accounts and jointly held property.
2. List every state where the person lived or owned real estate or tangible property.
3. Find each state's revenue department page and write down the date of death and due date.
4. Book a consultation with a probate or tax professional if any state's threshold is close.