Does Your State Have an Estate or Inheritance Tax?
The old axiom about the two certainties in life are death & taxes remains true. A recent report from the Tax Foundation says in 2022, there are 12 states (and DC) with an inheritance or estate tax – with one state, Maryland, having both. Hawaii and Washington State have the highest estate tax top rates in the nation at 20%. Massachusetts and Oregon have the lowest exemption levels at $ 1 million, with Connecticut having the highest exemption level at $ 9.1 million. See the chart below to compare the various states’ estate tax and state inheritance tax rates.
“Estate taxes are paid by the decedent’s estate before assets are distributed to heirs and are thus imposed on the overall value of the estate. Inheritance taxes are remitted by the recipient of a bequest and are thus based on the amount distributed to each beneficiary.”
Click here to read the full report at the Tax Foundation.
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