16 states with estate or inheritance taxes

For heirs who are the deceased’s niece, nephew, daughter-in-law, son-in-law, aunt, uncle or great-grandchild, the first $1,000 of inherited property is exempt from tax. After that, the

property they inherit is subject to a 4 percent to 16 percent inheritance tax. The higher the property’s value, the higher the rate. For all other heirs, the first $500 of inherited property

is exempt, but the rest is taxed at rates from 6 percent to 16 percent. Again, the rates increase as the value of the inherited property goes up. MAINE ESTATE TAX At $7 million, Maine’s

estate tax exemption is the third-highest in the nation for 2025 (up from $6.8 million in 2024). For estates worth more than $7 million, Maine has three estate tax rates: 8 percent, 10

percent or 12 percent. The higher the taxable estate’s value, the higher the rate. MARYLAND ESTATE AND INHERITANCE TAXES Maryland is the lone state with both an estate tax and an inheritance

tax. Its estate tax exemption amount is $5 million, tied with Vermont for the fifth-highest state exemption in the U.S. For taxable estates that exceed the $5 million mark, Maryland’s

estate tax rates start at 8 percent and run up to 16 percent. Maryland’s inheritance tax is assessed at a flat 10 percent rate. However, the tax doesn’t apply to an heir who inherits

property worth $1,000 or less. There’s also no tax due if the heir is the deceased’s spouse, parent, stepparent, grandparent, child, stepchild, grandchild (or other lineal descendant of a

child), sibling, son-in-law, daughter-in-law or surviving spouse of a deceased child who hasn’t remarried. MASSACHUSETTS ESTATE TAX Your estate is more likely to be taxed in Massachusetts 

than in most other states on this list, since taxable estates worth more than $2 million may be subject to the state’s estate tax. That’s the third-lowest estate tax exemption in the

country, and it isn’t adjusted from year to year to account for inflation. Estate tax rates in Massachusetts run anywhere from 0.8 percent to 16 percent, depending on the value of the

taxable estate. MINNESOTA ESTATE TAX Minnesota may tax estates worth more than $3 million. The state’s $3 million exemption amount, which isn’t adjusted annually for inflation, is the

fifth-lowest among all states with an estate tax. Minnesota’s estate tax rates run between 13 percent and 16 percent, depending on the taxable estate's value. NEBRASKA INHERITANCE TAX

Nebraska’s inheritance tax doesn’t apply to property inherited by the deceased person’s spouse or by anyone 21 or younger. Heirs who are close relatives of the deceased — including parents,

grandparents, siblings, children and grandchildren — pay a 1 percent tax on inherited property worth more than $100,000. Certain other relatives — including uncles, aunts, nieces and nephews

— pay an 11 percent tax on property that’s worth more than $40,000. For all other heirs, there’s a 15 percent tax on inherited property worth more than $25,000. NEW JERSEY INHERITANCE TAX

The first $500 of property inherited by any one person is exempt from the New Jersey inheritance tax. The tax also doesn’t apply to heirs who are certain relatives or partners of the

deceased person, including a spouse, civil union partner, domestic partner, parent, grandparent, child, grandchild, or great-grandchild.