2026 Planning Reference
Estate planning · State-level death taxes
Where the states tax estates in 2026
The federal exemption sits at a historic $15M per individual — but seventeen states and the District of Columbia impose their own estate or inheritance taxes, often at thresholds a fraction of the federal limit. Here is the full map of who taxes what, and how much room your clients really have.
Federal exemption per individual ($30M per married couple) under the OBBBA
States plus the District of Columbia that levy a standalone estate tax
States that levy an inheritance tax — Maryland is the only state with both
States that levy neither an estate nor an inheritance tax in 2026
The national picture
Which states tax death — at a glance.
Each square is a state. The burden clusters in the Northeast and Pacific — most of the country imposes no death tax at all.
Estate tax
Lowest exemption in the nation.
Shown: Oregon, the lowest-threshold state. Every state's figures appear in the full reference table below.
The exposure gap
State limits sit far below the federal line.
An estate that owes nothing federally can still face a sizable state bill. Oregon taxes estates above just $1M; Connecticut alone matches the federal figure.
Figures reflect 2026 law. Several state exemptions are indexed annually for inflation; values shown are rounded. Toggle view shown: tax-free exemption per individual (top marginal rate data appears in the reference table below).
The full reference
Every estate-tax state, side by side.
| State | Exemption (2026) | Top rate | Rate structure | What to know |
|---|---|---|---|---|
| Oregon | $1.0M | 16% | Graduated 10–16% | Lowest exemption in the nation. |
| Rhode Island | $1.8M | 16% | Graduated 0.8–16% | Exemption indexed annually for inflation. |
| Massachusetts | $2.0M | 16% | Graduated 0.8–16% | Flat $2M exemption — not indexed for inflation. |
| Minnesota | $3.0M | 16% | Graduated 13–16% | Brackets begin at a steep 13%. |
| Washington | $3.0M | 20% | Graduated 10–20% | Top rate reduced from 35% to 20% effective July 1, 2026 (ESB 6347). Exemption frozen at $3.0M. |
| Illinois | $4.0M | 16% | Graduated 0.8–16% | No spousal portability of the exemption. |
| District of Columbia | $4.99M | 16% | Graduated 11.2–16% | Exemption indexed annually ($4,988,400). |
| Maryland | $5.0M | 16% | Graduated 0.8–16% | Only state that levies BOTH estate and inheritance tax. |
| Vermont | $5.0M | 16% | Flat 16% | Single flat rate above the exemption. |
| Hawaii | $5.49M | 20% | Graduated 10–20% | Second-highest top rate, on estates over $10M. |
| Maine | $7.0M | 12% | Graduated 8–12% | Comparatively low top rate of 12%. |
| New York | $7.16M | 16% | Graduated 3.06–16% | A "cliff" removes the exemption entirely near 105% of the threshold. |
| Connecticut | $15M | 12% | Flat 12% | Exemption matches the federal figure; flat 12% rate. |
* Washington's top rate of 35% applies to deaths in the first half of 2026 (SB 5813). Under ESB 6347, signed March 24, 2026, the top rate reverts to 20% for deaths on or after July 1, 2026, with the exemption resetting to a frozen $3.0M.
A separate tax — paid by the heir
Six states tax the inheritance, not the estate.
An inheritance tax is owed by the person who receives assets, with the rate set by their relationship to the deceased — spouses are exempt everywhere, and most states exempt children too. These apply regardless of estate size.
4.5% to children, 12% to siblings, 15% to others. Life insurance to a named beneficiary is exempt.
Repealed its estate tax in 2018 but kept its inheritance tax. Spouses and children pay nothing.
Immediate family is fully exempt; the rate rises with the distance of the relationship.
County-administered. Highest rates fall on non-relatives; close family pays little.
The only state with both taxes — inheritance tax on top of its $5M estate tax. Close family exempt.
Inheritance tax fully repealed as of January 1, 2025 — effectively 0% in 2026.
Why it matters for your clients
A low state threshold can tax an estate the IRS never touches.
The federal $15M exemption tells only half the story. A family with a $4M estate owes nothing in Washington, D.C. — but the same estate is fully exposed in Oregon, Massachusetts, and Rhode Island, where the tax begins at $1–2M. Residency, real property location, and the timing of a move all change the answer.
"The question isn't only whether the federal estate tax applies — it's which state's line the estate crosses first."
Planning levers
- Life insurance held in an ILIT to fund the tax outside the taxable estate
- Domicile planning — establishing residence in a no-tax state before death
- Annual and lifetime gifting to draw the estate below the state threshold
- Irrevocable trusts to remove appreciating assets from the estate entirely
For advisor education only · Not legal, tax, or investment advice. Exemption amounts and rates reflect 2026 state law as enacted and are subject to change; several states index their thresholds annually for inflation. Figures verified against state revenue departments and the Tax Foundation. Confirm current rules for a specific estate with qualified counsel.
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