• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

3

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

3

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Finance

These Are the 14 States With the Worst ‘Death Taxes’

By
Jeff Bukhari
Jeff Bukhari
Down Arrow Button Icon
By
Jeff Bukhari
Jeff Bukhari
Down Arrow Button Icon
April 24, 2017, 2:46 PM ET
funeral parlour, coffin bearer
ullstein bild ullstein bild via Getty Images

Death and taxes are inevitable, but you may be able to do something to avoid the so-called death tax.

While you can’t sidestep paying federal estate taxes, you can dodge state estate taxes, depending on where you live. There are only 14 states, as well as the District of Columbia, that levy their own estate taxes on top of the federal government’s, according to data compiled by MarketWatch, while a total of six impose an inheritance tax on the recipients of an estate.

The estate tax is levied on the money, property and other assets that pass down from a deceased person to his or her heirs (hence the “death tax” label). The federal estate tax exemption for 201, is $5.49 million, with a maximum tax rate of 40%, meaning that the IRS will only tax the value of an estate higher than that amount.

A set up with a threshold that high means most people won’t have to deal with the tax. According to a recent congressional report, of the 2.6 million deaths reported in 2013, only 4,700—or 0.2%—resulted in estate-tax liability.

But plenty of small-business proprietors and property owners will be on the hook when the time comes. The tax has been fairly unpopular in recent years, despite its narrow impact, and President Trump and most Republicans favor its abolition.

Where taxes overlap

The good news for the wealthy is that federal and state estate taxes aren’t piled on top of each other cumulatively, which could make for a truly enormous bill. When figuring out federal tax liability, state taxes are subtracted from the value of the taxable estate. Still, on a big enough estate the combination of the two could become quite costly.

State estate tax exemptions also vary wildly, ranging from $1 million all the way up to the federal exemption of $5.49 million, with the maximum tax rates landing between 12% and 20%. The most costly state to die in, by Bischoff’s analysis, is Washington, which has an exemption of just $2,129,000 and a maximum tax rate of 20%. The District of Columbia, Massachusetts, and Oregon come up next, with maximum tax rates of 16% and relatively low exemptions of $1 million. Rhode Island and Minnesota also each have a 16% tax rate, but their exemptions are slightly higher at $1,150,125 and $1.8 million, respectively.

Of all the states with estate taxes, Maine is lease punitive, with a 12% tax rate and an exemption of $5.49 million. Connecticut, too, has a 12% tax rate, but its exemption is only $2 million.

(The other states with estate taxes are Delaware, Hawaii, Illinois, Maryland, New Jersey, New York, and Vermont.)

(Click here for more articles from Time Inc.’s Looking Forward series.)

If that weren’t bad enough, estate taxes aren’t the only way state governments tax death. While estate taxes take a cut directly from the estate of the deceased, inheritance taxes take a bite out of whatever the recipient receives. Fortunately, only six states charge an inheritance tax. Nebraska, which has a $10,000 exemption on any assets inherited, taxes at 18%, while Kentucky offers a $500 exemption and a 16% tax rate. Iowa and Pennsylvania have no exemption and tax at 15%.

Two other states –New Jersey and Maryland – have the unfortunate distinction of hitting their residents with both the estate tax and the inheritance tax.

If you plan on moving to a different state to avoid paying taxes, it’s important to establish legal residence in your new home state. Otherwise, the taxman from your old state may come to haunt your family long after you’ve gone. The bottom line: As long as you’ve got enough wealth to potentially incur the estate tax, it’s worthwhile to talk with a tax pro about how to avoid it or minimize it.

About the Author
By Jeff Bukhari
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

U.S. allows Russia oil sales waiver to expire despite tight market
EnergyOil
U.S. allows Russia oil sales waiver to expire despite tight market
By Jennifer A. Dlouhy and BloombergMay 16, 2026
5 hours ago
Oil markets could be a month away from the moment of truth. Brace for a ‘non-linear’ price spike and panic buying, analysts warn
EnergyOil
Oil markets could be a month away from the moment of truth. Brace for a ‘non-linear’ price spike and panic buying, analysts warn
By Jason MaMay 16, 2026
9 hours ago
lirr
EconomyRailroads
Spring Hamptons traffic nightmare as Long Island Rail Road workers go on strike
By Philip Marcelo, Nick Lichtenberg and The Associated PressMay 16, 2026
14 hours ago
delivery
Retailecommerce
Walmart’s upper hand over Amazon in the $1 trillion e-commerce race: 90% of Americans live within 10 miles of a superstore
By Anne D'Innocenzio and The Associated PressMay 16, 2026
14 hours ago
milei
North AmericaInflation
Argentinians wage inflation strike on red meat sending beef consumption to 20-year low
By Clara Preve and The Associated PressMay 16, 2026
14 hours ago
tom
SuccessEntrepreneurs
Top Chef’s Tom Colicchio got a 15x return on a tech company most Americans have never heard of. He thinks his own industry is broken
By Nick LichtenbergMay 16, 2026
17 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
16 hours ago
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
Success
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
By Preston ForeMay 13, 2026
4 days ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
6 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
4 days ago
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
Future of Work
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
By Jake AngeloMay 16, 2026
20 hours ago
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
Future of Work
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
By Jacqueline MunisMay 16, 2026
16 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.