Currently the District of Columbia and the following 18 states collect a state estate tax - Connecticut, Delaware, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, Tennessee, Vermont, and Washington - while the seven states listed below collect a state inheritance tax. (Yes, Maryland and New Jersey are the only two states that collect both state inheritance taxes and state estate taxes.)
Inheritance Taxes vs. Estate Taxes
What is the difference between an inheritance tax and an estate tax? An inheritance tax is based on who receives the deceased person's estate, while an estate tax is based on the value of the deceased person's estate and not on who gets what. Refer to the State Estate Tax Chart for information about the 19 jurisdictions that collect estate taxes at the state level and their current state estate tax exemption amounts.
Below is a chart that summarizes the details of the laws that govern inheritance taxes in the seven states that collect them.
Inheritance Tax Chart
| State | Are Spouses Exempt? | Are Descendants Exempt? | Are Domestic Partners Exempt? | Is Life Insurance Included? | Tax Rate | Tax Form | Due Date |
| Indiana | Yes | No | No | No | 1% to 20% | Form IH-6 | 9 months after death |
| Iowa | Yes | Yes | No | No | 5% to 15% | Form IA 706 | 9 months after death |
| Kentucky | Yes | Yes | No | No | 4% to 16% | Form 92A200, 92A202, or 92A205 | 18 months after death |
| Maryland | Yes | Yes | Certain transfers | No | 10% | Varies | Varies |
| Nebraska | Yes | No | No | No | 1% to 18% | Form 500 | 12 months after death |
| New Jersey | Yes | Yes | Yes | No | 11% to 16% | Form IT-R or IT-NR | 8 months after death |
| Pennsylvania | Yes | No | No | No | 4.5% to 15% | Form REV-1500 | 9 months after death |
