Taxes

State Estate Tax by State (2025)

Twelve states plus the District of Columbia levy an estate tax on top of the federal estate tax (which applies only above $13.99M in 2025). State exemptions are dramatically lower — as low as $1M in Massachusetts and Oregon — so middle-class estates in those states can owe state estate tax even when no federal tax is due.

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Written by the Inherited Home Buyers editorial team· Reviewed by Editorial Tax Reviewer (Placeholder) (CPA)· Last updated 2026-05-25

States with estate tax (2025)

$1M: Massachusetts, Oregon. $2M: Rhode Island (approx). $5–7M range: Connecticut, Illinois, Maine, Maryland, Minnesota, Vermont. $7M+: Hawaii, New York, Washington. DC: $4.873M.

Portability between spouses

The federal exemption is portable — unused exemption transfers to the surviving spouse if Form 706 is filed. Most state-level estate taxes are not portable, so each spouse must use planning vehicles to capture their own exemption.

Frequently asked questions

Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington, plus DC.
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Related guides
Inheritance Tax vs Estate Tax
This page is for general educational purposes only and is not tax advice. Tax outcomes depend on your specific facts and the year of the transaction. Always confirm with a licensed CPA or tax attorney before making decisions.
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