Understanding State Estate Taxes and Inheritance Taxes

Currently the following states impose a separate state estate tax: CT, DE, DC, HI, IL, ME, MD, MA, MN, NJ, NY, NC, OH, OR, RI, TN, VT, and WA; the following states collect a state inheritance tax: IN, IA, KY, MD, NE, NJ, and PA; and CT and TN keep track of gift taxes at the state level. Learn all about state estate taxes, inheritance taxes, and gift taxes here.

What's the Difference Between an Estate Tax and an Inheritance Tax?
While the terms "estate tax" and "inheritance tax" are often used interchangeably when referring to death taxes, these terms refer to two completely different types of taxes. Learn the difference between these two taxes and if your state collects either or both.

Which States Collect a State Estate Tax?
Currently a handful of states and the District of Columbia collect an estate tax at the state level. Find out if your state is one of them.

Which States Do Not Collect a State Estate Tax?
Currently a significant majority of states do not collect an estate tax at the state level. Find out if your state is one of them.

States With an Estate Tax or Inheritance Tax in 2013
In 2013 less than half of the U.S. states still collect an estate tax or an inheritance tax (or both) at the state level. Find out if your state is one of them.

States Without an Estate Tax or an Inheritance Tax in 2013
Currently a majority of U.S. states do not collect an estate tax or an inheritance tax at the state level. Find out if your state is one of them.

State Estate Tax and Exemption Chart
Currently only a handful of states and the District of Columbia collect a state estate tax. Here you'll find a chart that lists the historical and current estate tax exemptions for the states that collect estate taxes at the state level.

Which States Collect a State Inheritance Tax?
Currently the District of Columbia and a handful of states collect an estate tax at the state level, only a few states which are listed in this article collect an inheritance tax at the state level, and two states collect both an estate tax and an inheritance tax at the state level. Find out if your state collects an inheritance tax.

What is the Pick Up Tax?
Prior to January 1, 2005, some states collected a separate state estate tax, called a pick up tax or sponge tax, that was actually equal to a portion of the overall federal estate tax bill. Learn what the pick up tax is and find out if your state used to collect it.

State Inheritance Tax Chart
Currently a handful of states and the District of Columbia collect a state estate tax, while seven states collect a state inheritance tax. Learn the difference between an estate tax and an inheritance tax and view a chart that summarizes the inheritance tax laws of Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania.

State Tax Chart
If you are looking to move to a new state or for the best place to retire, then understanding what taxes will be associated with your move or retirement city will be important since each state has its own tax laws. Here you will find a chart that shows which states collect an income tax, sales tax, death tax, and/or gift tax.

Understanding the State Estate Tax Exemption Trap
The state estate tax exemption gap refers to the difference between a state's estate tax exemption and the federal estate tax exemption. Learn what the gap is and how to avoid the state estate tax exemption trap.

What is an ABC Trust?
When planning to reduce federal estate taxes, married couples can make use of the AB Trust system to effectively transfer two times the federal estate tax exemption to their heirs. But in states that collect their own separate estate tax, AB Trust planning can cause part of the B Trust to be taxed when the first spouse dies. In response, the...

Which States Allow for ABC Trust Planning?
When planning to reduce federal estate taxes, married couples can make use of the AB Trust system to maximize use of their estate tax exemptions. But in states that collect a separate estate tax, AB Trust planning can cause part of the B Trust to be taxed when the first spouse dies. In response, the ABC Trust system was created, which in a...

Would You Consider Moving to Avoid State Estate Taxes?
Do people really move to a new state to avoid estate taxes? I say yes because in my years of experience as an estate planning attorney, probably half of my clients have changed their primary residence to avoid paying state taxes. Would you do it?

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Wills & Estate Planning