Kiplinger
By Sandra Block
Updated October 24th, 2025
Over a dozen states currently impose estate or inheritance taxes on heirs. Find out where you’ll have to pay…
Unless you’re reading this from the deck of your superyacht, you probably don’t have to worry about federal estate taxes. In 2025, only estates worth $13.99 million or more ($27.98 million or more for a married couple) are hit by federal estate taxes, and only a small percentage of Americans have accumulated that much wealth.
State taxes are another story...
Several states have reduced or eliminated their estate and inheritance taxes to dissuade well-off retirees from moving to more tax-friendly jurisdictions. However, 12 states and Washington, D.C., still impose an estate tax, and five states have an inheritance tax. Maryland has both.
Note: An estate tax is levied on the deceased’s estate, while an inheritance tax is paid by heirs subject to the tax (spouses are usually exempt).
States with an inheritance tax or estate tax in 2025
Even if you don’t consider yourself particularly wealthy, the value of your home and funds in your retirement savings could exceed the estate tax threshold in some states. With that in mind, if you live in a state that imposes an estate or inheritance tax—and you don’t plan to move — you may want to talk to a certified financial planner or tax professional about steps to reduce the size of your estate.
