Estate & Inheritance Tax by State: The 2026 Map

The federal estate tax only touches estates worth roughly $14 million or more — so most people ignore it. But 17 states plus DC levy their own estate or inheritance tax, and several start far below the federal line. If you live in (or are retiring to) one of them, the state tax is the one your heirs are far more likely to actually pay. Here's who taxes what in 2026.

The short version

• 12 states plus DC have an estate tax; 5 states have an inheritance tax.
• Maryland is the only state with both.
• Oregon and Massachusetts tax estates starting at just $1M and $2M.
• Iowa fully repealed its inheritance tax on January 1, 2025.

Estate tax vs. inheritance tax

The two sound alike but work differently — and a few states' fine print depends on the distinction:

• Estate tax is paid by the estate before anything is distributed, based on the total value left behind.
• Inheritance tax is paid by each heir on what they personally receive, with the rate usually rising the more distantly related the heir is.

Which states have an estate tax?

Twelve states levy an estate tax in 2026. The number that matters is the exemption — the amount you can leave before the tax applies:

The District of Columbia also has an estate tax (about a $4.9M exemption). Note how far some of these sit below the federal threshold: Oregon's $1 million and Massachusetts's $2 million mean an ordinary home plus retirement savings can be enough to trigger the tax.

Which states have an inheritance tax?

Only five states tax inheritances directly:

Iowa used to be on this list, but it phased its inheritance tax out and fully repealed it effective January 1, 2025 — so estates of people who die in 2025 or later owe nothing in Iowa. Maryland is the lone state that imposes both an estate tax and an inheritance tax.

How states rank on economic freedom

Death taxes are one slice of a state's overall tax-and-regulation load. Our economic-freedom score blends total tax burden with regulatory climate — which is why the strongest states below tend to be ones with neither an estate nor an inheritance tax:

1. 1NHNew Hampshire
   10.0A+
2. 2TNTennessee
   9.8A+
3. 3SDSouth Dakota
   9.6A+
4. 4TXTexas
   9.4A+
5. 5IDIdaho
   9.2A+
6. 6FLFlorida
   9.0A+
7. 7NCNorth Carolina
   8.8A
8. 8GAGeorgia
   8.6A
9. 9NDNorth Dakota
   8.4A-
10. 10INIndiana
    8.2A-

See all 50 states ranked on Economic Freedom

See the full tax-burden & economic-freedom ranking

All 50 states ranked on total tax load, regulation, and business climate — with a color-coded map.

What it means for retirees and movers

If you're choosing where to retire, the estate/inheritance map is worth a look alongside income and property taxes:

1. Check the exemption, not just the headline. A state with an estate tax but a $13M exemption (Connecticut) won't touch most estates; a $1M exemption (Oregon) might.
2. Mind your heirs' residency too. Inheritance tax usually follows the decedent's state, but estate planning gets complex across state lines — a quick consult can save real money.
3. Weigh it against everything else. A no-estate-tax state with high property or sales taxes may cost you more year to year than the one-time estate tax would. Compare the whole picture.

For most families the state estate tax — not the federal one — is the realistic concern, and it's entirely a function of where you live. That's exactly the kind of trade-off the rankings above are built to help you weigh.